INDUSTRIAL/PARK LEASE



1.1  BASIC LEASE TERMS

     a.   DATE OF LEASE EXECUTION:        October 27, 1997

     b.   TENANT:                         Percon, Inc.

          Address (Leased Premises):      1720 Willow Creek Circle
                                          Eugene, OR 97402

          Address (For Notices):          1720 Willow Creek Circle
                                          Eugene, OR 97402

     c.   LANDLORD:                       WCP, LLC
          Address (For Notices):          860 West Park Street, Suite # 1
                                          Eugene, OR 97401

     d.   TENANT'S USE OF PREMISES: Office & Assembly Engineering

     e.   PREMISES AREA:                  Approximately 14,450 square feet

     f.   BUILDING AREA:                  Approximately 21,600 square feet

     g.   AGREED UPON PREMISES PERCENT OF BUILDING:   66.90 %

     h.   TERM OF LEASE:  9 Months.       Commencement date:  January 1, 1998.
                                          Termination date:   September 30, 1998

     i.   BASE MONTHLY RENT:

                            Term                           Base Monthly Rent
                            ----                           -----------------
          January 1, 1998 through June 30, 1998               $15,173.00
          July 1, 1998 through September 30, 1998             $16,618.00

     j.   ADDITIONAL RENT:

                                          Additional rent as defined in
                                          Paragraph 4.1B and 4.2.


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2.1  EXTENSION OPTION
          Tenant shall have one option to extend the Termination Date for a
          consecutive period of three (3) months to December 31, 1998. This
          option may be exercised by Tenant giving Landlord written notice of
          Tenant's intent of exercise at least ninety (90) days prior to the
          Termination Date. Tenant may exercise this Extension Option only if
          Tenant is not in default of this Lease at the time of exercise. The
          Base Monthly Rent for the Premises during the Extension Option Period
          shall be $16,618.00. With the exception of Base Monthly Rent, the
          extended term shall be upon the same provisions, terms and conditions
          as contained in the original Lease term.

3.1  DELETED

4.1  RENT
          A.   Base Monthly Rent. Tenant shall pay to Landlord Base Monthly Rent
               in the initial amount in Section 1.1 which shall be payable
               monthly in advance on the first day of each and every calendar
               month ("Base Monthly Rent").
          B.   Additional Rent. Tenant shall pay the Base Monthly Rent for the
               Premises and any Additional Rent provided herein without
               deduction or offset whatsoever. Additional Rent means amounts
               determined under Paragraphs 4.1, and 4.2 of this Lease and any
               other sums payable by Tenant to Landlord under this Lease. "Rent"
               or "Rents" shall mean Base Monthly Rent and Additional Rent. All
               Rent shall be paid by Tenant to Landlord monthly in advance on
               the first day of every calendar month, at the address shown in
               Section 1.1, or such other place as Landlord may designate in
               writing from time to time. All rent shall be paid in lawful
               currency of the United States of America. All rent due for any
               partial month shall be prorated at the rate of 1/30th of the
               total monthly rent per day. In the event any payment due from
               Tenant to Landlord is not received by Landlord within ten days
               from the due date thereof, Tenant shall pay to Landlord a late
               charge equal to five (5) percent of the amount of the payment
               coming due, but in no event shall such late charge exceed any
               maximum charge now or hereafter established by law. In addition,
               if any payment coming due from Tenant to Landlord is not received
               by Landlord promptly when due, the same shall bear interest at
               the prime rate of Key Bank of Oregon, or its successor, plus 2%,
               on a fully floating basis (herein the "Default Rate"), but in no
               event exceeding the maximum rate then allowed by law, from the
               date first due until the date paid in full. Landlord's right to
               collect any late charge or interest shall be in addition to any
               other rights or remedies available to Landlord hereunder or at
               law or in equity. Any payments of any kind returned for
               insufficient funds will be subject to an additional handling
               charge of $25.00, and thereafter, 


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               Landlord may require Tenant to pay all future payments of rent or
               other sums due by money order or cashier's check.

4.2  ADDITIONAL RENT
          The purpose of this Section is to ensure that Tenant bear all Expenses
          related to the Premises, and its proportionate share as set in
          Paragraph 1.1g, of all Expenses that are reasonably related to the
          use, maintenance, repair or replacement, and insurance of the
          Building, with the exception of expenses stated in Paragraph 12.1A.
          Accordingly, beginning on the commencement date, Tenant shall commence
          the payment of Expenses as Additional Rent.
          The term "Expenses" shall mean all costs and expenses reasonably
          incurred by Landlord with respect to the use, operation, maintenance,
          repair or replacement, and insurance of the Premises and the Building,
          including, without limitation, the following costs (a.) through (e.).

          a.   All supplies, materials, labor, equipment, services, and all
               utilities used in or related to the operation and maintenance of
               the Premises and the Building.

          b.   All management, janitorial, insurance, and service agreement
               costs related to the Premises and the Building.

          c.   All maintenance, replacement and repair costs relating to the
               areas within the Premises and the Building, including, without
               limitation, air conditioning systems, repairing roofs, sidewalks,
               landscaping, service areas, driveways, parking areas (including
               resurfacing and restriping parking areas), walkways, building
               exteriors (including painting), signs and directories of the
               Premises and the Building provided, however, that any such cost
               which is characterized as a capital expenditure under generally
               accepted accounting principles shall be amortized over the useful
               life of such improvement, repair or replacement.

          d.   All Real Property Taxes, which shall mean and include all taxes,
               assessments (general and special) and other impositions or
               charges which may be taxed, charged, levied, assessed or imposed
               upon all or any portion of or in relation to the Premises, the
               Building, or any portion thereof, any leasehold estate in the
               Premises or measured by rent from the Premises, including any
               increase caused by the transfer, sale or encumbrance of the
               Building or any portion thereof.


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                  e.       Landlord or Landlord's agent shall notify Tenant and
                           will furnish Tenant with copies of services together
                           with a statement of Tenant's proportionate share
                           thereof as described in Paragraph 1.1g Basic Lease
                           Terms of this Lease.

5.1  DELETED
6.1  DELETED

7.1  USE OF PREMISES AND BUILDING FACILITIES
          Tenant shall use the Premises solely for the purposes set forth in
          Section 1.1 and for no other purpose without obtaining the prior
          written consent of Landlord. Tenant acknowledges that neither Landlord
          nor any agent of Landlord has made any representation or warranty with
          respect to the Premises or with respect to the suitability of the
          Premises or the Building for the conduct of Tenant's business, nor has
          Landlord agreed to undertake any modification, alteration or
          improvement to the Premises or the Building, except as provided in
          writing in this Lease. Tenant acknowledges that Landlord may from time
          to time, without consultation and consent from Tenant, make such
          modifications, alterations, deletions or improvements to the Building
          as Landlord may deem necessary. Tenant shall promptly and at all times
          comply with all applicable federal, state and local statutes, laws,
          ordinances, orders and regulations affecting the Premises, and the
          Building(herein "Laws"), as well as all master plans, restrictive
          covenants, and also any reasonable rules and regulations that Landlord
          may adopt from time to time. Tenant will not perform any act or carry
          on any practices that may injure the Premises or the Building; that
          may be a nuisance or menace to other tenants in the Building; or that
          shall in any way interfere with the quiet enjoyment of such other
          tenants. Tenant shall not use the Premises for sleeping, washing
          clothes, cooking or the preparation, manufacture or mixing of anything
          that might emit any objectionable odors, noises, vibrations or lights
          onto such other tenants. If sound insulation is required to muffle
          noise produced by Tenant on the Premises, Tenant at its own cost shall
          provide all necessary insulation. Tenant shall not do anything on the
          Premises which will overload any existing parking or service to the
          Premises. Pets and/or animals of any type shall not be kept on the
          Premises.

8.1  SIGNAGE
          All signage shall comply with rules and regulations set forth by
          Landlord and may be modified from time to time. Tenant shall place no
          window covering (e.g., shades, blinds, curtains, drapes, screens, or
          tinting materials), stickers, signs, lettering, banners or advertising
          or display material on or near exterior windows or doors if such
          materials are visible from the exterior of the Premises, without
          Landlord's prior written consent. Similarly, Tenant may not install
          any alarm boxes, foil protection tape or other security equipment on
          the Premises without 


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          Landlord's prior written consent. Any material violating this
          provision may be destroyed by Landlord without compensation to Tenant.

9.1  PERSONAL PROPERTY TAXES
          Tenant shall pay before delinquency all taxes, assessments, license
          fees and public charges levied, assessed or imposed upon its business
          operations as well as upon all trade fixtures, leasehold improvements,
          merchandise and other personal property in or about the Premises.

10.1 PARKING
          Landlord grants to Tenant and Tenant's customers, suppliers, employees
          and invitees, an exclusive license to use the designated parking areas
          of the Building for the use of motor vehicles during the term of this
          Lease. Tenant shall be entitled to a pro-rata share of parking spaces,
          based on Tenant's rentable square footage. Landlord reserves the right
          at any time, to make reasonable rules and regulations relating to the
          use of such parking areas, including reasonable restrictions on
          parking by tenants and employees, to designate specific spaces for the
          use of any tenant and to make changes in the parking layout from time
          to time.

11.1 UTILITIES
          Tenant shall pay for its proportionate share as set in paragraphs 1.1g
          of all water, stormwater charges, gas, heat, light, power, sewer,
          electricity, telephone or other service metered, chargeable or
          provided to the Premises and the Building. Landlord reserves the right
          to pay the costs of such utilities and to treat the same as an
          "Expense" (subject to a right of Landlord to elect to require Tenant
          to pay its actual portion of such Expense in lieu of its percentage
          share).

12.1 MAINTENANCE
          A.   To maintain in good condition, Landlord shall repair or replace
               the structural parts of the Premises, which are defined as the
               foundations, bearing and exterior walls (excluding glass), at
               Landlord's expense.
          B.   To maintain in good condition, Landlord shall repair or replace,
               the unexposed electrical, plumbing and sewerage systems,
               including without limitation, those portions of the systems lying
               outside the Premises, exterior doors (excluding glass), window
               frames, gutters and downspouts on the Building and the heating,
               ventilating and air conditioning system servicing the Premises;
               provided, however, the cost of all such maintenance shall be
               considered "Expenses" for purposes of Section 4.2. Except as
               provided above, Tenant shall maintain the Premises in good
               condition, including, without limitation, maintaining and
               repairing all walls, floors, ceilings, interior doors, exterior
               and interior windows and fixtures as well as damage caused by
               Tenant, its agents, employees or 


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               invitees. Upon expiration or termination of this Lease, subject
               to other terms and conditions herein, Tenant shall surrender the
               Premises to Landlord in the same condition as existed at the
               commencement of the term, except for reasonable wear and tear or
               damage caused by fire or other casualty for which Landlord has
               received all funds necessary for restoration of the Premises from
               insurance proceeds. Nothing herein shall excuse Tenant from
               financial responsibility for property damage caused by Tenant or
               Tenant's agents.

13.1 ALTERATIONS
          (1)  Tenant shall not make any alterations to the Premises that can be
               seen from the exterior of the Premises, to any utility system
               within the Premises or to any structural element of the Premises
               without Landlord's prior written consent in each instance. If
               Landlord gives its consent to such alterations, Landlord may post
               notices in accordance with the laws of the state in which the
               Premises are located. Any alterations made shall remain on and be
               surrendered with the Premises upon expiration or termination of
               this lease, except that Landlord may, within thirty (30) days
               before or thirty (30) days after the expiration or termination of
               this Lease or the termination of Tenant's right of possession,
               elect to require Tenant to remove any alterations which Tenant
               may have made to the Premises. If Landlord so elects, at its own
               cost Tenant shall restore the Premises to the condition
               designated by Landlord in its election, before the last day of
               the term or within thirty (30) days after notice of its election
               is given, whichever is later.

          (2)  Any request for Landlord's consent to alterations shall be made
               at least ten (10) days before any work may be commenced and shall
               be accompanied by (i) detailed and costed plans and
               specifications for all alterations, and (ii) Tenant's written
               agreement to provide, upon completion of work, a complete set of
               as-built plans and specifications. Landlord may withhold consent,
               in its reasonable discretion and may issue such consent subject
               to conditions. All alterations shall be constructed only after
               obtaining Landlord's prior written consent and only in conformity
               with all covenants, conditions and restrictions of record or any
               applicable Laws. The issuance of Landlord's consent shall not be
               a waiver of Tenant's obligation to comply with all Laws, nor
               Landlord's opinion that such alterations are in compliance with
               all Laws.

          (3)  Should Landlord consent in writing to Tenant's alteration of the
               Premises, Tenant shall contract with a licensed, bonded and
               insured contractor. Tenant shall secure all appropriate
               governmental approvals and permits, 


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               and shall complete such alterations with due diligence in
               compliance with the plans and specifications approved by
               Landlord. All such construction shall be performed in a manner
               which will not interfere with the quiet enjoyment of other
               tenants of the Building.

          (4)  Tenant shall pay all costs for construction of alterations and
               shall keep the Premises and the Building free and clear of all
               liens which may result from work by third parties authorized by
               Tenant. If any such lien is filed, the same shall be an event of
               default hereunder if Tenant fails to remove such lien within ten
               (10) days of the filing thereof, or engage in other remedial
               actions to prevent any harm to Landlord.

14.1  INDEMNIFICATION OF LANDLORD
          Subject to the provisions of Section 15.1, Tenant shall indemnify
          Landlord and save Landlord harmless from and against any and all
          claims, actions, damages, liability and expense in connection with
          loss of life, personal injury or damage to property arising out of the
          occupancy or use by Tenant of the Leased Premises, or occasioned
          wholly or in part by any act or omission of Tenant, its agents,
          contractors, employees or invitees. Subject to the provisions of
          Section 15.1, Landlord shall indemnify Tenant and save Tenant harmless
          from and against any and all claims, actions, damages, liability and
          expense arising out of Landlord's willful misconduct or gross
          negligence.

15.1  WAIVER OF SUBROGATION
          Neither Landlord or Tenant shall be liable to the other or to any
          insurance company (by way of subrogation or otherwise) insuring the
          other party for any loss or damage to any building, structure, or
          other tangible property, or any resulting loss of income or extra
          expense, even though such loss or damage might have been caused by the
          negligence of such party, its officers, directors, employees or agents
          if any such loss or damage is covered by insurance benefiting the
          party suffering such loss or damage or was required to be covered by
          insurance pursuant to this lease.

15.2  TENANT'S LIABILITY INSURANCE
          Tenant shall, at its own expense, purchase and maintain a General
          Liability policy during the term of this lease and any renewal
          thereof. The insuring agreement shall provide limits of not less than
          $1,000,000 per occurrence for bodily injury, personal injury and
          property damage, with an annual aggregate of not less than $2,000,000.

          This policy shall name the Landlord as Additional Insured. A
          Certificate of Insurance and a copy of the Endorsement issued by the
          insurance carrier for each 


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          policy of insurance required by this Section 15.2 shall be delivered
          to Landlord at the Commencement Date and within ten days prior to the
          expiration of the term of each policy. Each certificate and policy of
          insurance required by this Section 15.2 shall expressly evidence
          insurance coverage as required by this Lease and shall contain an
          endorsement or provision requiring at least thirty (30) days written
          notice to Landlord prior to the expiration, cancellation, or reduction
          in the amount of coverage of the policy.

15.3  TENANT'S PROPERTY INSURANCE
          Landlord shall not be liable to Tenant for any damage to personal
          property of Tenant on the leased premises, and Tenant shall maintain
          insurance on such personal property at a value equal to replacement
          costs.

16.1 DESTRUCTION
          If during the term, the Premises and the Building, is more than
          twenty-five percent (25%) destroyed (based upon replacement cost) from
          any cause, or rendered inaccessible or unusable from any cause,
          Landlord may, in its sole discretion, terminate this Lease by delivery
          of notice to Tenant within thirty (30) days of such event without
          compensation to Tenant. If Landlord does not elect to terminate this
          Lease, and if, in Landlord's estimation, the Premises cannot be
          restored within one hundred and eighty (180) days following such
          destruction, the Landlord shall notify Tenant and Tenant may terminate
          this Lease by delivery of notice to Landlord within thirty (30) days
          of receipt of Landlord's notice. If Landlord does not terminate this
          Lease and if in Landlord's estimation the Premises can be restored
          within one hundred and eighty (180) days, then Landlord shall commence
          to restore the Premises in compliance with then existing laws and
          shall complete such restoration with due diligence. In such event,
          this Lease shall remain in full force and effect, but there shall be
          an abatement of Base Monthly Rent and Additional Rent between the date
          of destruction and the date of completion of restoration, based on the
          extent to which destruction interferes with Tenant's use of the
          Premises; provided, there shall be no abatement if such damage is the
          result of Tenant's negligence or wrongdoing. Landlord shall use its
          discretion and best efforts to minimize inconvenience to Tenant
          arising from restoration activities. Tenant shall not be entitled to
          any damages or compensation for loss of use or any inconvenience
          occasioned by damage or any repair or restoration.

17.1 CONDEMNATION
          (1)  Definitions. The following definitions shall apply. (1)
               "Condemnation" means (a) the exercise of any governmental power
               of eminent domain, whether by legal proceedings or otherwise by
               condemnor and (b) the voluntary sale or transfer by Landlord to
               any condemnor either under 


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               threat of condemnation or while legal proceedings for
               condemnation are proceeding; (2) "Date of Taking" means the date
               the condemnor has the right to possession of the property being
               condemned; (3) "Award" means all compensation, sums or anything
               of value awarded, paid or received on a total or partial
               condemnation; and (4) "Condemnor" means any public or
               quasi-public authority, or private corporation or individual,
               having a power of condemnation.

          (2)  Obligations to Be Governed by Lease. If during the term of the
               Lease there is any taking of all or any part of the Premises or
               the Building, the rights and obligations of the parties shall be
               determined pursuant to this Lease.

          (3)  Total or Partial Taking. If the Premises are totally taken by
               condemnation, this Lease shall terminate on the Date of Taking.
               If any portion of the Premises is taken by Condemnation, this
               Lease shall terminate as to the part so taken as of the Date of
               Taking, but shall in all other respects remain in effect, except
               that Tenant can elect to terminate this Lease if the remaining
               portion of the Premises is rendered unsuitable for Tenant's
               continued use of the Premises. If Tenant elects to terminate this
               Lease, Tenant must exercise its right to terminate by giving
               notice to Landlord within thirty (30) days after the nature and
               extent of the Condemnation have been finally determined. If
               Tenant elects to terminate this Lease, Tenant shall also notify
               Landlord of the date of termination, which date shall not be
               earlier than thirty (30) days nor later than ninety (90) days
               after Tenant has notified Landlord of its election to terminate;
               except that this Lease shall terminate on the Date of Taking if
               the Date of Taking falls on a date before the date of termination
               as designated by Tenant. If any portion of the Premises is taken
               by condemnation and this Lease remains in full force and effect,
               on the Date of Taking the Base Monthly Rent shall be reduced by
               an amount in the same ration as the total number of square feet
               in the Premises taken bears to the total number of square feet in
               the Premises immediately before the Date of Taking.

          (4)  Landlord's Election. Notwithstanding anything herein to the
               contrary, if the Building or any portion thereof is taken by
               Condemnation and the portion taken does not, in Landlord's
               reasonable judgment, feasibly permit the continuation of the
               operation of the Building by Landlord, then Landlord shall have
               the right to terminate this Lease by written notice given within
               thirty (30) days following the Date of Taking.


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          (5)  Award. Tenant shall have no right or claim to all or any portion
               of the Award; provided this shall not limit Tenant's right to
               seek and to receive compensation for relocation expenses or the
               value of its personal property taken, so long as receipt of such
               compensation does not decrease the Award otherwise payable to
               Landlord.

18.1 ASSIGNMENT OR SUBLEASE
          Tenant shall not assign or sublet its interest in this Lease in whole
          or in part without Landlords written consent; provided, however, that
          the prohibition against assignment shall not include any assignment of
          all of Tenant's interest hereunder to a related Company and / or that
          Tenant's interest hereunder that results from a merger or
          consolidation of Tenant with another entity. The consent by Landlord
          to any assignment shall not constitute a waiver of the necessity for
          such consent to any subsequent assignment. Notwithstanding any
          assignment, Tenant shall remain fully liable on this Lease and shall
          not be released from performing any of the terms, covenants or
          conditions of this Lease. Landlord shall not unreasonably withhold its
          consent to any assignment provided that the proposed tenant is
          compatible with Landlord's normal standards for the Building, as
          determined by Landlord in good faith. If Tenant proposes an assignment
          to which Landlord wishes to consent under this paragraph, Landlord
          shall have the option of terminating this Lease and dealing directly
          with the proposed assignee. Tenant shall pay any costs incurred by
          Landlord in connection with the request for assignment, including
          reasonable attorney's fees. Tenant shall require any proposed assignee
          to provide financial information and other documents as reasonably
          requested by Landlord.

19.1 DEFAULT
          The occurrence of any of the following shall constitute a default by
          Tenant: (a) Tenant fails to pay any payment coming due hereunder from
          Tenant to Landlord and such failure is not cured within ten (10) days
          after its due date; or (b) Tenant shall violate or fail to perform any
          other covenant, condition or provision of this Lease within ten (10)
          days after written notice thereof is given to Tenant by Landlord;
          provided, however, that if the nature of Tenant's obligation is such
          that more than ten (10) days are required for performance, then Tenant
          shall not be in breach if Tenant commences performance within ten (10)
          days after such notice and thereafter diligently prosecutes the cure
          to completion.

20.1 LANDLORD'S REMEDIES
          (1)  Landlord shall have the following remedies if Tenant is in
               material default. These remedies are not exclusive; they are
               cumulative and in addition to any remedies now or later allowed
               by law. Landlord may terminate this Lease and/or Tenant's right
               to possession of the Premises at 


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               any time. No act by Landlord other than giving notice to Tenant
               shall terminate this Lease. Acts of maintenance, efforts to relet
               the Premises, or the appointment of a receiver on Landlord's
               initiative to protect Landlord's interest under this Lease shall
               not constitute a termination of this Lease. Upon termination of
               this Lease or of Tenant's right to possession, Landlord has the
               right to recover from Tenant: (A) The worth of the unpaid rent
               that had been earned at the time of such termination; and (B) The
               worth of the amount of the unpaid rent that would have been
               earned after the date of such termination; and (C) Any other
               amount, including court, attorney and collection costs, necessary
               to compensate Landlord for all detriment proximately caused by
               Tenant's default. "The Worth," as used for Item 20.1(1)(A) in
               this Paragraph is to be computed by allowing interest at the
               Default Rate. "The Worth" as used for Item 20.1(1)(B) in this
               Paragraph is to be computed by discounting the amount at the
               discount rate of the Federal Reserve Bank of San Francisco at the
               time of termination of Tenant's right of possession.

          (2)  All covenants and agreements to be performed by Tenant under any
               of the terms of this Lease shall be performed by Tenant at
               Tenant's sole cost and expense and without any abatement of rent.
               If Tenant shall fail to pay any sum of money owed to any party
               other than Landlord, for which it is liable hereunder, or if
               Tenant shall fail to perform any other act on its part to be
               performed hereunder, and such failure shall continue for ten (10)
               days after notice thereof by Landlord, Landlord may, without
               waiving such default or any other right or remedy, shall not be
               obligated to make any such payment or perform any such other act
               to be made or performed by Tenant. All sums so paid by Landlord
               and all necessary incidental costs, together with interest
               thereon at the Default Rate as set in Paragraph 4.1B from the
               date of expenditure by Landlord, shall be payable to Landlord on
               demand.

21.1 ENTRY ON PREMISES
          Landlord and its authorized representatives shall have the right to
          enter the Premises at all reasonable times with prior notice to Tenant
          for any of the following purposes: (a) To determine whether the
          Premises are in good condition and whether Tenant is complying with
          its obligations under this Lease; (b) To do any necessary maintenance
          and to make any restoration to the Premises or the Building that
          Landlord has the right or obligation to perform; (c) To post "for
          sale" signs at any time during the term, to post "for rent" or "for
          lease" signs during the last ninety (90) days of the term, or during
          any period while Tenant is in default; (d) To show the Premises to
          prospective brokers, agents, buyers, tenants or persons interested in
          leasing or purchasing the Premises, at any time 


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          during the term; or (e) To repair, maintain or improve the Premises
          and to erect scaffolding and protective barricades around and about
          the Premises but not so as to prevent entry to the Premises and to do
          any other act or thing necessary for the safety or preservation of the
          Premises or the Building. Landlord shall not be liable in any manner
          for any inconvenience, disturbance, or loss of business, arising out
          of Landlord's entry onto the Premises as provided in this Section.
          Tenant shall not be entitled to an abatement or reduction of rent if
          Landlord exercises any rights reserved in this Section. Landlord shall
          conduct its activities on the Premises as provided herein in a manner
          that will cause the least inconvenience, annoyance or disturbance to
          Tenant. For each of these purposes, Landlord shall at all times have
          and retain a key with which to unlock all the doors in, upon and about
          the Premises, excluding Tenant's vaults and safes. Tenant shall not
          alter any lock or install a new or additional lock or bolt on any door
          of the Premises without prior written consent of the Landlord. If
          Landlord gives its consent, Tenant shall furnish Landlord with a key
          for any such lock.

21.2  QUIET ENJOYMENT
          Landlord warrants that so long as Tenant complies with all terms of
          this lease it shall be entitled to peaceable and undisturbed
          possession of the Premises free from any eviction or disturbance by
          Landlord. Neither Landlord nor it's managing agent shall have any
          liability to Tenant for loss or damages arising out of the acts of
          other tenants of the Building or third parties, nor any liability for
          any reason which exceeds the value of its interest in the Building.

22.1 SUBORDINATION
          Without the necessity of any additional document being executed by
          Tenant for the purpose of effecting a subordination, and at the
          election of Landlord or any mortgagee or any beneficiary of a Deed of
          Trust with a lien on the Building or any ground lessor with respect to
          the Building, this Lease shall be subject and subordinate at all times
          to (a) all ground leases or underlying leases which may now exist or
          hereafter be executed affecting the Building, and (b) the lien of any
          mortgage or deed of trust which may now exist or hereafter be executed
          in any amount for which the Building, ground leases or underlying
          leases, or Landlord's interest or estate in any of said items is
          specified as security. In the event that any ground lease or
          underlying lease terminates for any reason or any mortgage or Deed of
          Trust is foreclosed or a conveyance in lieu of foreclosure is made for
          any reason, Tenant shall, notwithstanding any subordination, attorn to
          and become the Tenant of the successor in interest to Landlord, at the
          option of such successor in interest. Tenant covenants and agrees to
          execute and deliver, upon demand by Landlord and in the form requested
          by Landlord any additional documents evidencing the priority or
          subordination of the Lease with respect to any such ground lease or
          the lien of any such mortgage or Deed of Trust. Tenant hereby


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          irrevocably appoints Landlord as attorney-in-fact of Tenant to
          execute, deliver and record any such document in the name and on
          behalf of Tenant.

          Tenant, within ten days from notice from Landlord, shall execute and
          deliver to Landlord, in recordable form, certificates stating that
          this Lease is not in default, is unmodified and in full force and
          effect, or in full force and effect as modified, and stating the
          modifications. This certificate should also state the amount of
          current monthly rent, the dates to which rent has been paid in
          advance, the amount of any security deposit and prepaid rent, and such
          other matters as Landlord may request. Failure to deliver this
          certificate to Landlord within ten days shall be conclusive upon
          Tenant that this Lease is in full force and effect and has not been
          modified except as may be represented by Landlord. In addition, in
          connection with any sale or financing involving the Premises, Tenant
          shall deliver to Landlord, within twenty (20) days of request by
          Landlord, a current financial statement of Tenant and of each
          guarantor.

23.1 NOTICE
          Any notice, demand, request, consent, approval or communication
          desired by either party or required to be given, shall be in writing
          and either served personally or sent by prepaid certified first class
          mail, addressed as set forth in Section 1.1. Either party may change
          its address by notification to the other party. Notice shall be deemed
          to be communicated 48 hours from the time of such mailing, or upon the
          time of service as provided in this Section.

24.1 WAIVER
          No delay or omission in the exercise of any right or remedy by
          Landlord or Tenant shall impair such right or remedy or be construed
          as a waiver. No act or conduct of Landlord, including without
          limitation, acceptance of the keys to the Premises, shall constitute
          an acceptance of the surrender of the Premises by Tenant before the
          expiration of the term. Only written notice from Landlord to Tenant
          shall constitute acceptance of the surrender of the Premises and
          accomplish termination of the Lease. Landlord's consent to or approval
          of any act by Tenant requiring Landlord's consent or approval shall
          not be deemed to waive or render unnecessary Landlord's consent to or
          approval of any subsequent act by Tenant. Any waiver by Landlord of
          any default must be in writing and shall not be a waiver of any other
          default concerning the same or any other provision of the Lease.

25.1 SURRENDER OF PREMISES; HOLDING OVER
          Upon expiration of the term or the termination of this Lease or of
          Tenant's right of possession, Tenant shall surrender to Landlord the
          Premises, all tenant improvements, and alterations (except alterations
          which Tenant has the right or 


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          obligation to remove) in good condition, except for ordinary wear and
          tear. Tenant shall remove all personal property including, without
          limitation, all wallpaper, paneling and other decorative improvements
          or fixtures and shall perform all restoration made necessary by the
          removal of any alterations or Tenant's personal property before the
          expiration of the term, including for example, restoring all wall
          surfaces to their condition prior to the commencement of this Lease.
          Landlord can elect to retain or dispose of in any manner Tenant's
          personal property not removed from the Premises by Tenant prior to the
          expiration of the term. Tenant waives all claims against Landlord for
          any damage to Tenant resulting from Landlord's retention or
          disposition of Tenant's personal property. Tenant shall be liable to
          Landlord for Landlord's costs for storage, removal or disposal of
          Tenant's personal property. If Tenant fails to surrender the Premises
          upon the expiration of the term, or upon the termination of this Lease
          or of Tenant's right of possession, Tenant shall defend, indemnify and
          hold Landlord harmless from all resulting loss or liability.

          If Tenant, with Landlord's consent, remains in possession of the
          Premises after expiration of this Lease, such possession by Tenant
          shall be deemed to be a month-to-month tenancy terminable on written
          30-day notice at any time, by either party. All provisions of this
          Lease, except those pertaining to term and rent, shall apply to the
          month-to-month tenancy. Tenant shall pay Base Monthly Rent in the
          amount of $19,508.00 plus 100% of said last month's estimate of
          Tenant's share of Expenses pursuant to Section 4.2.

27.1 MISCELLANEOUS PROVISIONS
          (1)  Time of Essence. Time is of the essence of each provision of this
               Lease.

          (2)  Successor. This Lease shall be binding on and inure to the
               benefit of the parties and their successors, except as provided
               in Section 18.1 herein.

          (3)  Landlord's Consent. Any consent required by Landlord under this
               Lease must be granted in writing. No such consent shall be
               unreasonably withheld, but any consent may be issued subject to
               reasonable conditions.

          (4)  Commissions. Each party represents that it has not had dealing
               with any real estate broker, finder or other person with respect
               to this Lease in any manner.

          (5)  Other Charges. If Landlord becomes a party to any litigation
               concerning this Lease, the Premises or the Building, by reason of
               any act or omission of Tenant or any agent, guest or invitee of
               Tenant, Tenant shall be liable to 


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               Landlord for all attorneys fees and costs incurred by Landlord in
               connection with such litigation, including any appeal or review.

               In the event of litigation between Tenant and Landlord and/or any
               other Protected Party, the prevailing party shall be entitled to
               recover from the losing party all costs and attorneys fees
               incurred both at and in preparation for trial and any appeal or
               review. If Landlord employs a collection agency to recover
               delinquent charges, Tenant agrees to pay all collection agency
               and attorneys' fees charged to Landlord in addition to rent, late
               charges, interest and other sums payable under this Lease. Tenant
               shall pay a charge of $75.00 to Landlord for preparation of a
               demand for delinquent rent.

          (6)  Landlord's Successors. In the event of a sale or conveyance by
               Landlord of the Premises, Building or a portion thereof, or of
               Landlord's interest in the foregoing, the same shall operate to
               release Landlord from any liability under this Lease, and in such
               event Landlord's successor in interest shall be solely
               responsible for all obligations of Landlord under this Lease.

          (7)  Interpretation. This Lease shall be construed and interpreted in
               accordance with the laws of the state in which the Premises are
               located. This Lease constitutes the entire agreement between the
               parties with respect to the Premises and the Building, except for
               such guarantees or modifications as may be executed in writing by
               the parties from time to time. When required by the context of
               this Lease, the singular shall include the plural, and the
               masculine shall include the feminine and/or neuter. "Party" shall
               mean Landlord or Tenant. If more than one person or entity
               constitutes Tenant, the obligations imposed upon Tenant shall be
               joint and several. The enforceability, invalidity or illegality
               of any provision shall not render the other provisions
               unenforceable, invalid or illegal.

          (8)  Third Parties. There are no third parties benefited hereby, this
               Lease being intended solely for the benefit of Landlord and
               Tenant. Notwithstanding the foregoing, the beneficiary under a
               trust deed, or a mortgagee, holding a security interest in the
               Premises shall be a third party beneficiary of the Tenant's
               obligations set forth in Section 31.1 hereof and shall have the
               right to enforce such provisions.

          (9)  Survival. All provisions of this Lease which contemplate
               performance after the expiration or termination hereof or the
               termination of Tenant's right to possession hereunder, shall
               survive any expiration or termination.


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28.1 EMISSIONS
               Tenant shall not:
          a.   Discharge, emit or permit to be discharged or emitted, any
               liquid, solid or gaseous matter, or any combination thereof, into
               the atmosphere, the ground or any body of water, which matter, as
               reasonably determined by Lessor or any governmental entity, does,
               or may, pollute or contaminate the same, or is, or may become,
               radioactive or does, or may adversely affect the (1) health or
               safety of persons, wherever located, whether on the Premises or
               anywhere else, (2) condition, use or enjoyment of the Premises or
               any other real or personal property, whether on the Premises or
               anywhere else, or (3) Premises or any of the improvements thereto
               or thereon including buildings, foundations, pipes, utility
               lines, landscaping or parking areas;

          b.   Produce, or permit to be produced, any intense glare, light or
               heat except within an enclosed or screened area and then only in
               such manner that the glare, light or heat shall not be
               discernible from outside the Premises;

          c.   Create, or permit to be created, any sound pressure level which
               will interfere with the quiet enjoyment of any real property
               outside the Premises; or which will create a nuisance or violate
               any Law, rule, regulation or requirement;

          d.   Create, or permit to be created, any ground vibration that is
               discernible outside the Premises:

          e.   Transmit, receive or permit to be transmitted or received, any
               electromagnetic, microwave or other radiation which is harmful or
               hazardous to any person or property in, on or about the Premises,
               or anywhere else.

28.2 STORAGE AND USE
          (1)  Storage. Subject to the uses permitted and prohibited to Tenant
               under this lease, Tenant shall store in appropriate leak proof
               containers all solid, liquid, or gaseous matter, or any
               combination thereof, which matter, if discharged or emitted into
               the atmosphere, the ground or any body of water, does or may (1)
               pollute or contaminate the same, or (2) adversely affect the (i)
               health or safety of persons, whether on the Premises or anywhere
               else, (ii) condition, use or enjoyment of the Premises or any
               real or personal property, whether on the Premises or anywhere
               else, or (iii) Premises or any of the improvements thereto or
               thereon.


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          (2)  Use. In addition, without Landlord's prior written consent,
               Tenant shall not use, store or permit to remain on the Premises
               any solid, liquid or gaseous matter which is, or may become,
               radioactive. If Landlord does give its consent, Tenant shall
               store the materials in such a manner that no radioactivity will
               be detectable outside a designated storage area and Tenant shall
               use the materials in such a manner that (1) no real or personal
               property outside the designated storage area shall become
               contaminated thereby or (2) there are and shall be no adverse
               effects on the (i) health or safety of persons, whether on the
               Premises or anywhere else, (ii) condition, use or enjoyment of
               the Premises or any real or personal property thereon or therein,
               or (iii) Premises or any of the improvements thereto or thereon.

28.3 DISPOSAL OF WASTE
          (1)  Refuse Disposal. Tenant shall not keep any trash, garbage, waste
               or other refuse on the Premises except in sanitary containers and
               shall regularly and frequently remove same from the Premises.
               Tenant shall keep all incinerators, containers or other equipment
               used for the storage or disposal of such materials in a clean and
               sanitary condition.

          (2)  Sewage Disposal. Tenant shall properly dispose of all sanitary
               sewage and shall not use the sewage system (1) for the disposal
               of anything except sanitary sewage or (2) in excess of the lesser
               of the amount (a) reasonably contemplated by the uses permitted
               under this Lease or (b) permitted by any governmental entity.
               Tenant shall keep the sewage disposal system free of all
               obstructions and in good operating condition.

          (3)  Disposal of Other Waste. Tenant shall properly dispose of all
               other waste or other matter delivered to, stored upon, located
               upon or within, used on, or removed from, the premises in such a
               manner that it does not, and will not, adversely affect the (1)
               health or safety of persons, wherever located, whether on the
               Premises or elsewhere, (2) condition, use or enjoyment of the
               Premises or any other real or personal property, wherever
               located, whether on the Premises or anywhere else, or (3)
               Premises or any of the improvements thereto or thereon including
               buildings, foundations, pipes, utility lines, landscaping or
               parking.

29.1 COMPLIANCE WITH LAW
          Notwithstanding any other provision in the Lease to the contrary,
          Tenant shall comply with all Laws in complying with its obligations
          under this Lease, and in 


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          particular, Laws relating to the storage, use and disposal of
          hazardous or toxic matter.

29.2 APPLICABLE LAW
          The application law for the purpose of interpretation of this lease,
          or the enforcement of any rights or obligations hereunder, shall be
          the laws of the United States Federal Government, Oregon State, County
          of Lane, and the City of Eugene.

31.1 ADDITIONAL PROVISIONS
          The following covenants and agreements shall in no way diminish or
          limit the foregoing provisions of this Section. No use may be made of,
          on or from the Premises relating to the handling, storage, disposal,
          transportation, or discharge of Hazardous Substances (as defined
          below). All of such use which does occur shall be in strict
          conformance with all Laws. Tenant shall give prior written notice to
          Landlord of any use, whether incidental or otherwise, of Hazardous
          Substances on the Premises, or of any notice of any violation of any
          Law with respect to such use. Landlord and any ground lessor or master
          lessor of the Premises and/or the Building shall have the right to
          request and to receive information with respect to use of Hazardous
          Substances on the Premises in writing.

          In addition to the indemnity obligations contained elsewhere herein,
          Tenant shall indemnify, defend and hold harmless Landlord, the other
          Protected Parties, the Premises, the Building, and the beneficiary
          under a trust deed, or a mortgagee, holding a security interest in the
          Building, from and against all claims, losses, damages, costs,
          response costs and expenses, liabilities, and other expenses caused
          by, arising out of, or in connection with, the generation, release,
          handling, storage, discharge, transportation, deposit or disposal in,
          on, under or about the Premises by Tenant or any of Tenant's Agents of
          the following (collectively referred to as "Hazardous Substances"):
          hazardous materials, hazardous substances, toxic wastes, toxic
          substances, pollutants, petroleum products, underground tanks, oils,
          pollution, asbestos, PCB's, materials, or contaminants, as those terms
          are commonly used or as defined by federal, state, and/or local law or
          regulation related to protection of health or the environment,
          including but not limited to, the Resource Conservation and Recovery
          Act (RCRA) (42 U.S.C. ss. 6901 et seq.); the Comprehensive
          Environmental Response, Compensation and Liability Act (CERCLA) (42
          U.S.C. ss. 9601, et seq.); the Toxic Substances Control Act (15 U.S.C.
          ss. 2601, et seq.); the Clean Water Act (33 U.S.C. ss. 1251, et seq.);
          the Clean Air Act (42 U.S.C. ss. 7401 et seq.); and ORS Chapters 453,
          465 and 466 as any of the same may be amended from time to time,
          and/or by any rules and regulations promulgated thereunder. Such
          damages, costs, liabilities, and expenses shall include such as are
          claimed by any regulating and/or administering agency, any ground
          lessor or master lessor of the Building, the 


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          holder of any Mortgage or Deed of Trust on the Building, and/or any
          successor of the Landlord named herein. This indemnity shall include
          (a) claims of third parties, including governmental agencies, for
          damages, fines, penalties, response costs, monitoring costs,
          injunctive or other relief; (b) the costs, expenses or losses
          resulting from any injunctive relief, including preliminary or
          temporary injunctive relief; (c) the expenses, including fees of
          attorneys and experts, of reporting the existence of Hazardous
          Substances to an agency of the State of Oregon or of the United States
          as required by applicable laws and regulations; (d) any and all
          expenses or obligations, including attorney's and paralegal fees,
          incurred at, before and after any trial or appeal therefrom or review
          thereof, or an administrative proceeding or appeal therefrom or review
          thereof, whether or not taxable as costs, including, without
          limitation, attorney's fees, paralegal fees, witness fees (expert and
          otherwise), deposition costs, photocopying and telephone charges and
          other expenses related to the foregoing. All of which shall be paid by
          Tenant to Landlord when such expenses are incurred. This indemnity
          shall survive the expiration or earlier termination of the term of the
          Lease of the termination of Tenant's right of possession and be fully
          enforceable thereafter.

32.1 INFORMATION
          Tenant shall provide Landlord with any and all information regarding
          Hazardous Substances in the Premises, including contemporaneous copies
          of all filings and reports to governmental entities, and any other
          information requested by Landlord. In the event of any accident, spill
          or other incident involving Hazardous Substances, Tenant shall
          immediately report the same to Landlord and supply Landlord with all
          information and reports with respect to the same. All information
          described herein shall be provided to Landlord regardless of any claim
          by Tenant that it is confidential or privileged.

33.1 CORPORATE AUTHORITY
          If Tenant is a corporation, each individual executing this Lease on
          behalf of said corporation represents and warrants that he is duly
          authorized to execute and deliver this Lease on behalf of said
          corporation and that this Lease is binding upon said corporation in
          accordance with its terms.


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AGREED AND ACCEPTED:                   DATE: 10/27/97
                                             --------



Landlord:   WCP, LLC                   Tenant:  Percon, Inc.

By:         CAROL MCGEIGAN, AIF         By:     BRAD WEST
            ----------------------              ----------------------
                                                Brad West

Its:        SECRETARY                  Its:     Chief Operating Officer
            ----------------------              ----------------------


EXHIBITS:

     A.   Premises
     B.   Building


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