Document:

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                                                                         EX-10.2

                                                                  Execution Copy

                             SHAREHOLDERS' AGREEMENT

                                      AMONG

                          YASKAWA ELECTRIC CORPORATION

          a corporation organized and existing under the laws of Japan

            and having its registered head office in Kitakyushu shi,

                      hereinafter referred to as "YASKAWA"

                             BROOKS AUTOMATION, INC.

           a corporation organized and existing under the laws of the
                            State of Delaware, U.S.A.

                       hereinafter referred to as "BROOKS"

                                       AND

                         YASKAWA BROOKS AUTOMATION, INC.

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     THIS SHAREHOLDERS' AGREEMENT (this "AGREEMENT") dated as of June 30, 2006
(the "EFFECTIVE DATE") among YASKAWA ELECTRIC CORPORATION, a corporation
organized and existing under the laws of Japan ("YASKAWA"), BROOKS AUTOMATION,
INC., a corporation organized and existing under the laws of the State of
Delaware, U.S.A. ("BROOKS") and YASKAWA BROOKS AUTOMATION, INC., a corporation
organized and existing under the laws of Japan (the "CORPORATION"). Brooks and
Yaskawa are sometimes are referred to herein collectively as "SHAREHOLDERS" or
individually as a "SHAREHOLDER."

     WHEREAS, the Shareholders have established the Corporation as a joint
venture for the purpose of marketing, selling, distributing and servicing the JV
Products (as defined below) to Japanese Semiconductor Customers (as defined
below);

     WHEREAS, concurrently with the execution of this Agreement (i) Yaskawa and
the Corporation are entering into the Yaskawa Japan Robot Supply Agreement,
dated the date hereof and (ii) Brooks and the Corporation are entering into the
Brooks Japan Robot Supply Agreement, dated the date hereof (collectively, the
"SUPPLY AGREEMENTS");

     NOW, THEREFORE, in consideration of the mutual covenants and premises set
forth below, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as
follows:

                           ARTICLE 1: CAPITALIZATION.

     1.1 Initial Capital. The Shareholders agree that, in order to effectuate
its business objectives, the Corporation shall require total equity capital of
JY450,000,000. It is further understood and agreed that the Shareholders'
respective shares of common stock of the Corporation to be purchased on the
Operations Commencement Date (which excludes the shares of common stock that
were purchased by the Shareholders in connection with the establishment of the
Corporation) shall be:

<TABLE>
<CAPTION>
Name      Ratio   Number of Shares    Share Price
----      -----   ----------------    -----------
<S>       <C>     <C>                <C>
Yaskawa   50%            225         JY225,000,000
Brooks    50%            225         JY225,000,000
</TABLE>

The "OPERATIONS COMMENCEMENT DATE" shall be September 21, 2006, which date may
be changed by the mutual agreement of the Shareholders.

     1.2 Additional Capital Requirements. In the event that the Corporation
shall require additional funds for its operations and activities that the
parties decide shall not be covered by the subscribed and paid-up capital, such
additional funds shall be secured by the Corporation by such means (including
procuring loans from independent sources and/or issuing bonds, debentures or
other debt securities) as the Shareholders may mutually agree in writing.

     1.3 Antidilution. Yaskawa and Brooks, as the original parties to this
Agreement, acknowledge and understand that the initial capitalization of the
Corporation calculated on a fully-diluted

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basis, as of the date hereof and as of the Operations Commencement Date, shall
be as follows: Yaskawa and Brooks each holds or will hold, as applicable, 50% of
the outstanding capital stock of the Corporation. The Corporation shall not
issue any additional capital stock or take any other action affecting the
capitalization of the Corporation unless (i) appropriate measures are taken to
preserve the above described percentages or (ii) each of the Shareholders
consents in writing to such issuance or action.

                ARTICLE 2: GOVERNANCE; ORGANIZATIONAL STRUCTURE.

     2.1 Independence of the Corporation. The Shareholders agree that it is a
fundamental principle that the Corporation be managed and operated as a company
independent of the Shareholders. The Shareholders may provide guidance and
advice to the Corporation, provided that, at all times, the Corporation shall,
through its board of directors, have the complete discretion, subject to the
provisions of this Agreement, of the Articles of Incorporation of the
Corporation and of applicable Japanese law, to take its own decisions in the
best interests of the Corporation.

     2.2 Shareholders Meetings. The Shareholders shall have the right to vote on
such activities and in the manner as set forth in the Articles of Incorporation
of the Corporation and in accordance with applicable law. Each of Yaskawa and
Brooks shall vote its shares in the Corporation so that the directors and
corporate auditors of the Corporation are, at all times (subject only to such
reasonable periods as are necessary for the filling of vacancies), the
individuals specified in Section 2.4.1 and Section 4.5, respectively.

     2.3 Steering Committee.

          2.3.1 A steering committee of six members shall be formed that will be
composed of the President and Executive Vice President of the Corporation and
four additional members. Yaskawa shall have the right to appoint and have
removed two of such additional members, and Brooks shall have the right to
appoint and have removed the other two additional members.

          2.3.2 The steering committee shall have the broadest powers to
supervise the business and operations of the Corporation, except for those
matters that are explicitly reserved for the shareholders of the Corporation or
the directors of the Corporation or as may be otherwise required by applicable
law.

          2.3.3 Each of the Shareholders will appoint to serve on the steering
committee individuals who have responsibility over the related business of the
Corporation in such Shareholder's organization.

          2.3.4 The steering committee may establish advisory committees for
specific purposes and each such advisory committee shall consist of an equal
number of members to be appointed by each of the Shareholders.

          2.3.5 To the extent permitted by applicable law, certain of the
actions of the board of directors, set forth in this Agreement and Exhibit I,
shall be submitted for consideration to the steering committee and no action may
be taken on such matters without its approval.

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          2.3.6 Further rules and procedures for the steering committee shall be
as set forth on Exhibit I (the "STEERING COMMITTEE RULES").

     2.4 Board of Directors.

          2.4.1 The board of directors of the Corporation shall consist of four
members, the President, the Executive Vice President, and two additional
members, one of whom shall be nominated and may be removed by Yaskawa, and the
remaining one of whom shall be nominated and may be removed by Brooks.

          2.4.2 As indicated in Section 2.3.5 and the Steering Committee Rules,
to the extent permitted by applicable law, certain actions of the board of
directors shall require prior approval of the steering committee.

          2.4.3 If unanimity on a decision to be taken by the board of directors
cannot be reached, the matter shall be referred to the steering committee, and
each of the Shareholders shall cause the directors nominated by the respective
Shareholder to vote for such matter as determined by the steering committee in
accordance with this Section.

          2.4.4 Annually, the board shall, to the extent permitted by applicable
law, submit a proposal for the Budget (as defined below) for the following
fiscal year for approval by the steering committee as set forth in Section 6.1.
For actions within the scope of the approved Budget, the board of directors
shall not require additional approval of the steering committee, except as
otherwise stated in the rules of procedure for the steering committee or as
provided in this Agreement (subject to applicable law).

          2.4.5 Further rules and procedures for the board of directors shall be
as set forth on Exhibit II.

     2.5 Management.

          2.5.1 The top executives and representative directors of the
Corporation shall be the President and the Executive Vice President. Other
management employees shall be as determined by the board of directors. Yaskawa
shall have the right to nominate and have removed the President, and Brooks
shall have the right to nominate and have removed the Executive Vice President.
The Shareholders shall cause their respective appointees or nominees (as
applicable) on the steering committee and the board of directors to cause (i)
the appointment (and, at the direction of Yaskawa, removal and replacement) of
Yaskawa's nominee as the President and (ii) the appointment (and, at the
direction of Brooks, removal and replacement) of Brooks' nominee as the
Executive Vice President. Other executive managing directors and managing
directors of the Corporation shall be elected by the board of directors as
provided in the Articles of Incorporation of the Corporation.

          2.5.2 The President and the Executive Vice President shall jointly
manage and direct the business of the Corporation. The President and the
Executive Vice President shall cooperate closely. The President shall be in
charge of the overall business of the Corporation and shall supervise the
actions of the other management employees of the Corporation (other than the
Executive Vice President). The

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authority of the President and the Executive Vice President shall be as
established by the board of directors and, to the extent permitted by applicable
law, the steering committee. The President and Executive Vice President shall
jointly prepare all documents to be submitted to the steering committee and the
general meeting of shareholders as well as the reports to be submitted to the
shareholders.

     2.6 Organizational Structure. The Corporation shall have the organizational
structure set forth in the Business Plan attached hereto as Exhibit VI (the
"ORGANIZATIONAL CHART"), as such structure may be amended from time to time by
the President and the Executive Vice President acting jointly with the approval
of the board of directors and, if permitted by applicable law, consent of the
steering committee.

                      ARTICLE 3: TRANSFER OF COMMON STOCK.

     3.1 Transfers by Shareholders Prohibited Without Consent. Unless otherwise
expressly permitted by Section 3.2, no Shareholder, nor any successor and assign
thereof, may directly or (subject to the last sentence of this Section 3.1)
indirectly sell, assign, pledge, encumber, hypothecate or otherwise transfer
("TRANSFER") any interest in any of such Shareholder's common stock in the
Corporation or permit any such interest to be subject to Transfer, directly or
indirectly, by operation of law or agreement, without obtaining the prior
written consent of the other Shareholder and their successors and assigns.
Notwithstanding the receipt of prior written consent, any such permitted or
approved Transfer shall be null and void and the Corporation shall, to the
extent permitted by applicable law, refuse to recognize such Transfer: (i) if
such Transfer would be made in a transaction which would violate any applicable
securities laws, rules or regulations; and (ii) unless the transferee shall
execute and deliver to each party hereto an agreement acknowledging that all
shares of or interest in any common stock in Corporation so transferred are and
shall remain subject to this Agreement, and agreeing to be personally bound
hereby. Any purported Transfer in any other manner shall be null and void, and
shall, to the extent permitted by applicable law, not be recognized or given
effect by the parties hereto. Notwithstanding anything to the contrary in this
Agreement, for the avoidance of doubt, a Change of Control of a Shareholder
shall not constitute a Transfer for the purposes of this Section 3.1.

     3.2 Transfers by Shareholders to Permitted Transferees.

          3.2.1 Each Shareholder may at any time, after prior written notice to
the other Shareholder, Transfer any or all of such Shareholder's shares of or
interests in common stock in the Corporation to (i) a wholly-owned direct or
indirect subsidiary of such Shareholder (a "PERMITTED TRANSFEREE") or (ii) in
connection with the sale by a Shareholder of all or substantially all of such
Shareholder's assets. A Permitted Transferee may Transfer shares of or any
interest in any common stock (i) to the Shareholder from which it received such
shares or interest or (ii) to another Permitted Transferee of such Shareholder.

          3.2.2 Notwithstanding Section 3.2.1, any such Transfer shall be null
and void and Corporation shall, to the extent permitted by applicable law,
refuse to recognize such Transfer: (i) if such Transfer would be made in a
transaction that would violate any applicable securities laws, rules or
regulations; and (ii) unless the transferee executes and delivers to each party
hereto an agreement

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acknowledging that all shares of or interests in any common stock in Corporation
so transferred are and shall remain subject to this Agreement and agreeing to be
personally bound hereby. A Permitted Transferee under Section 3.2.1 must also
agree, as a condition precedent to any Transfer under Section 3.2.1, to: (I)
become a party to this Agreement in addition to and not as a substitute for the
transferor and (II) appoint the original Shareholder of the shares or interest
it is receiving as such transferee's proxy in voting all such transferred shares
or interests and in any subsequent shares that may be issued by the Corporation
to such Permitted Transferee, and in exercising its rights under Article 2
regarding the nomination, election and replacement of directors, the members of
the steering committee, the corporate auditors, and the President or the
Executive Vice President (as applicable), for so long as this Agreement remains
in effect. Such proxy shall be irrevocable. No transfer by a Shareholder or any
of its Permitted Transferees under Section 3.2.1 shall release such original
Shareholder from any obligations or liabilities under this Agreement.

          3.2.3 Any Shareholder or Permitted Transferee intending to Transfer
any shares of or interests in common stock in the Corporation pursuant to this
Section 3.2 shall notify the Shareholders of any intended Transfer 10 days prior
to such Transfer, giving the name and address of the intended Permitted
Transferee and the Permitted Transferee's status as set forth in Section 3.2.1
hereof; provided, however, that no otherwise valid Transfer shall be rendered
invalid solely as a result of a failure to give notice hereunder. The
Shareholders shall use their respective commercially reasonable efforts
(including, without limitation, causing their respective nominees then serving
on the board of directors to take all necessary actions) to cause the
Corporation to effect any Transfer to a Permitted Transferee made (or to be
made) in accordance with this Agreement.

               ARTICLE 4: BOOKS AND RECORDS, FISCAL YEAR, AUDITS.

     4.1 Full and accurate books of account, financial records and annual
financial statements shall be made according to Japanese and internationally
accepted accounting principles, specifically US GAAP, showing the true condition
of the business and finances of the Corporation and the share ownership of each
Shareholder. They shall be kept at the principal office of the Corporation. Each
Shareholder, or its designated representatives, shall have access to and may
inspect and copy any part thereof.

     4.2 The Corporation shall forward internal monthly financial reports to
each Shareholder. Additionally, the Corporation shall forward quarterly
financial reports to each Shareholder, which reports shall be presented in such
format and shall contain such information, and which reports shall be reviewed
in accordance with accounting standards required of similar corporations in
Japan by a reputable international firm of certified public accountants
appointed by the steering committee (the "CORPORATION'S ACCOUNTANTS") to such
extent, as either Shareholder shall reasonably request based on such
Shareholder's reporting requirements. In addition, the Corporation shall prepare
or cause to be prepared, in a manner reasonably calculated to allow Brooks to
comply with its US financial reporting requirements (including earnings
announcements), and furnished to each of the Shareholders (i) not later than 45
days after the end of each of the Corporation's fiscal quarters (other than the
last quarter of the Corporation's fiscal year), quarterly financial statements
of the Corporation and its subsidiaries (if any) on a consolidated basis, in
customary form, prepared in accordance with US GAAP and reviewed by the
Corporation's

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Accountants, and (ii) not later than 45 days after the end of each fiscal year
of the Corporation, annual financial statements of the Corporation and its
subsidiaries (if any) on a consolidated basis, in customary form, prepared in
accordance with US GAAP and audited by the Corporation's Accountants.

     4.3 The initial fiscal year of the Corporation shall begin on the day of
the calendar year that the Corporation was incorporated and shall end on March
20, 2007, and each succeeding fiscal year shall start with March 21 and end on
March 20 of the following year. At the end of each fiscal year, an audit of the
Corporation's financial statements, at the Corporation's expense, shall be
performed by the Corporation's Accountants if required by Japanese law. In
addition, if Brooks reasonably so requests, the Corporation shall cause an audit
of the Corporation's financial statements to be performed by the Corporation's
Accountants on an annual basis as of the end of Brooks' fiscal year, and such
audit shall be performed, and the Corporation's audited financial statements
resulting therefrom shall be furnished to the Shareholders, in such manner and
at such time as to allow the inclusion of the Corporation's annual audited
financial statements as of the end of Brooks' fiscal year in the annual audited
financial statements of Brooks prepared for the purpose of compliance with
Brooks' US financial reporting requirements.

     4.4 Each of the Shareholders shall be entitled to have the books and
accounts of the Corporation examined by their own audit division or by external
auditors during office hours. The Shareholder who intends to perform such an
audit shall inform the Corporation and the other Shareholder thereof with a 14
days' advance notice. The staff of the Corporation shall render all assistance
if such examination takes place. The cost of the additional audit shall be borne
by the Shareholder requesting the audit.

     4.5 The Corporation shall have the corporate auditor(s) (Kansayaku)
prescribed by law, provided that the Corporation shall have at least two such
auditors. Yaskawa may nominate a full time auditor, Brooks shall be entitled to
nominate an auditor, and the Corporation shall be entitled to nominate the third
auditor, if required. The Shareholders shall approve appointments of these
nominees as corporate directors at a shareholders meeting of the Corporation.

     4.6 The Corporation shall bear and pay for the first US$50,000 per fiscal
year of the Corporation of incremental fees and disbursements of the
Corporation's Accountants payable by the Corporation in connection with the
financial reporting and auditing relating to such fiscal year and described in
the last sentence of Section 4.2 and the last sentence of Section 4.3 and any
other costs relating to reporting and auditing in accordance with US GAAP, as
compared with the fees and disbursements of the Corporation's Accountants
payable by the Corporation in connection with the financial reporting and
reviews relating to such fiscal year and described elsewhere in Section 4.2 and
Section 4.3. Brooks shall reimburse the Corporation for any excess of such
incremental fees and disbursements of the Corporation's Accountants (to the
extent the same are reasonable and documented) over US$50,000 per fiscal year of
the Corporation; provided that the Corporation shall allow Brooks, if Brooks
desires to do so, to discuss such incremental third party costs subject to
reimbursement by Brooks hereunder with the Corporation's Accountants prior to
the incurrence of the same by the Corporation.

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                         ARTICLE 5: STOCK CERTIFICATES.

     5.1 A copy of this Agreement shall be kept with the records of the
Corporation. With regard to shares of stock of the Corporation, the Corporation
shall initially not issue share certificates.

     5.2 To the extent that share certificates are subsequently issued and
exist, each of the Shareholders hereby agrees that each outstanding certificate
representing shares of common stock of the Corporation shall bear an endorsement
indicating that the securities represented by such certificate are subject to
the provisions of a Shareholders' Agreement, dated as of __________, 2006, by
and among the Corporation and its Shareholders and may not be sold, pledged,
hypothecated, encumbered, disposed of or otherwise transferred except in
accordance therewith.

                       ARTICLE 6: BUDGET; PROFIT-SHARING.

     6.1 Budget

          6.1.1 For each of the Corporation's fiscal years (or portions
thereof), for so long as the Corporation continues in existence hereunder, the
Corporation shall adopt an annual operating budget (the "BUDGET") in accordance
with the provisions of this Section 6.1. The Business Plan for the initial
fiscal year is attached hereto as Exhibit VI and the financial information
contained in the Business Plan shall constitute the Budget for the fiscal year
ending March 20, 2007.

          6.1.2 The Shareholders desire that each Budget be approved (subject to
applicable law) by the steering committee before the beginning of the fiscal
year covered by the relevant Budget (the "BUDGET FINALIZATION DATE").
Accordingly, prior to the commencement of the second and each subsequent fiscal
year of the Corporation, the board of directors shall submit guidelines for a
proposed Budget for the next fiscal year to the steering committee. The
guidelines for each proposed Budget shall include and set forth:

               (i) a proposed detailed operating budget and capital budget for
the next fiscal year of the Corporation (broken down by quarter), including line
items and schedules for each significant aspect of the activities of the
Corporation, projected income and cash flows, expenditures and expenses of the
Corporation and all other direct costs of the Corporation, as well as a reserve
for contingencies, and a projected balance sheet;

               (ii) projections as to any and all cash requirements and/or
financing needs for the next fiscal year of the Corporation; and

               (iii) such supporting documents as may reasonably be requested by
any member of the steering committee for purposes of verifying the accuracy,
appropriateness and reasonableness of the particular Budget submitted, all in
such detail as any member of the steering committee may reasonably request.

          6.1.3 Prior to the meeting of the steering committee, each member of
the steering committee shall have the right to propose, by notice delivered to
the steering committee, revisions to the

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proposed guidelines desired by such member. A meeting of the steering committee
shall be called for the purpose of considering the guidelines and (subject to
applicable law) adopting the relevant Budget, not later than the Budget
Finalization Date for such Budget. At such meeting, the steering committee shall
consider (i) whether to adopt the initially submitted guidelines as the relevant
Budget, or (ii) whether to adopt the relevant Budget as modified by one or more
such proposed revisions. If the steering committee does not approve a Budget for
a fiscal year, the Budget for the preceding fiscal year shall continue in effect
until the steering committee adopts a new Budget at a meeting of the steering
committee.

     6.2 Vacuum Business Economics. Promptly after the Effective Date, the
members of the steering committee shall consider and make reasonable efforts to
reach agreement on an allocation of the profits from sales of Brooks' Automation
Products to Japanese Semiconductor Customers.

     6.3 Employee. Brooks agrees to make available to the Corporation the
services of one engineer of Brooks, who shall be reasonably acceptable to the
Corporation, for the period from the Operations Commencement Date through
February 28, 2007, to provide services and support, to the extent that the
management of the Corporation determines that the services of such engineer are
required.

               ARTICLE 7: CONFIDENTIALITY; INTELLECTUAL PROPERTY.

     7.1 Confidential Information. During the term of this Agreement, the
Shareholders may exchange certain of their respective Confidential Information
with one another and with the Corporation and may receive Confidential
Information of the Corporation or the other Shareholder from the Corporation.
"CONFIDENTIAL INFORMATION" shall mean all data and information owned by or in
possession of either of the Shareholders or the Corporation, that is not
generally known to the public, whether of a technical, business or other nature
(including, without limitation, inventions, trade secrets, know-how and
information relating to the customers, business plans, promotional and market
activities, finances and other business affairs of such party) that is disclosed
by a party (the "DISCLOSING PARTY"), to another party (the "RECEIVING PARTY") in
furtherance of this Agreement and the purposes of the Corporation. Confidential
Information shall not include information that (i) was in the public domain, in
its entirety in a unified form, at the time of disclosure to the Receiving
Party; (ii) was known by the Receiving Party prior to its disclosure by the
Disclosing Party; (iii) becomes part of the public domain after the date of
disclosure by the Disclosing Party through no fault of the Receiving Party; or
(iv) is disclosed by a third party to the Receiving Party after the date of
disclosure by the Disclosing Party, where the third party did not require the
Receiving Party to hold such information in confidence and did not acquire such
information directly or indirectly from the Disclosing Party.

     7.2 Non-Disclosure and Non-Use. The Receiving Party agrees to treat as
secret and hold in strict confidence all Confidential Information it receives
from the Disclosing Party in connection with their cooperation or otherwise in
connection with the Corporation or its business, activities or affairs. The
Receiving Party agrees that it will not disclose any Confidential Information to
any other Person without the prior written permission of the Disclosing Party
(or as otherwise specifically provided in this Agreement). The Receiving Party
also agrees that it will only use the Confidential Information received in
connection with this Agreement and the business of the Corporation and (if the
Receiving Party is a Shareholder) in connection with monitoring and evaluating
the Receiving Party's investment in, and

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business relationship with, the Corporation and the exercise of the Receiving
Party's rights and performance of the Receiving Party's obligations under this
Agreement, the Articles of Incorporation of the Corporation, the Supply
Agreements and other instruments, agreements and arrangements that are or may be
entered into by the parties in connection with the Corporation and its business.
The Receiving Party agrees that only (i) its employees with a bona fide need to
know, and who have signed an appropriate confidentiality agreement, (ii) its
attorneys, accountants and other professional advisors subject to obligations of
confidentiality, (iii) its officers and directors and (iv) any potential
acquirer, investor or lender in connection with any potential sale of all or
substantially all of the assets or equity securities of the Receiving Party or
any potential merger or consolidation in which the Receiving Party, is a
constituent party, or a potential investment in or loan to the Receiving Party
as applicable (including any investment or commercial bankers, legal counsel,
and any other advisors in connection with the performance of customary due
diligence by such potential acquirer, investor or lender), in each case subject
to obligations of confidentiality, shall be provided access to the Confidential
Information of the Disclosing Party; provided that Confidential Information may
not be provided pursuant to clause (iv) to any change of control entity of the
Disclosing Party as indicated in Schedule C. In the event the Receiving Party is
required by court order, by the rules of any exchange or market on which the
Receiving Party's securities are traded, or by law or legal process, to disclose
Confidential Information of the Disclosing Party, the Receiving Party shall, to
the extent lawful, inform the Disclosing Party in writing prior to making such
disclosure to provide sufficient time to request a protective order or other
appropriate measure, and the Receiving Party will disclose only such information
that is legally required and will use its commercially reasonable efforts to
obtain confidential treatment for any Confidential Information that is so
disclosed. The obligations imposed by this Section 7.2 shall survive the
termination of this Agreement.

     7.3 Ownership of Intellectual Property.

          7.3.1 Existing Intellectual Property. All rights to Confidential
Information, trade secrets, know-how, inventions, patents, patent applications,
copyrights, trademarks and trade names ("INTELLECTUAL PROPERTY") owned or
licensed by a Shareholder (the "SHAREHOLDER INTELLECTUAL PROPERTY") shall be
fully retained by that Shareholder, and no rights or licenses are provided under
this Agreement to the other Shareholder or the Corporation.

          7.3.2 New Intellectual Property. In the event the Corporation develops
any Intellectual Property that is an improvement to, modification of or
otherwise based on the Shareholder Intellectual Property of only one
Shareholder, the new Intellectual Property shall be owned by that Shareholder
with a non-exclusive, fully-paid, non-transferable license being granted to the
Corporation (but not to the other Shareholder) for use of that new Intellectual
Property in connection with the development, manufacture, use, sale, or other
distribution of all current and future products of the Corporation during the
term of this Agreement. In the event that the Corporation develops any
Intellectual Property that is not an improvement to, modification of or
otherwise based on the Shareholder Intellectual Property of a Shareholder or is
an improvement to, modification of or is otherwise based on the Shareholder
Intellectual Property of both Shareholders, the new Intellectual Property shall
be owned by the Corporation with a non-exclusive, fully-paid, non-transferable
(except in connection with a permitted assignment of this Agreement), perpetual
license to develop, make, have made, import, sell, offer to sell any products
being

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granted to each Shareholder, with no license to either Shareholder of any of the
Shareholder Intellectual Property of the other Shareholder.

               ARTICLE 8: SUPPLY AND DISTRIBUTION OF JV PRODUCTS

     8.1 After the Operations Commencement Date and during the term of this
Agreement, neither Yaskawa or its Affiliates or Permitted Transferees nor Brooks
or its Affiliates or Permitted Transferees shall market, offer and/or sell,
directly or indirectly, any JV Products, or replacements therefor, to a Japanese
Semiconductor Customer, or license, finance or otherwise assist any other Entity
to market or sell, directly or indirectly, the JV Products to a Japanese
Semiconductor Customer, in each case except through the Corporation; provided,
however, that, notwithstanding anything to the contrary herein, Yaskawa is
permitted to manufacture, market and sell the JV Products listed on Schedule B
to the Japanese Semiconductor Customers listed on Schedule B until such time as
the marketing and sale of such JV Products may be transferred by Yaskawa to the
Corporation without consent of any third party providing development funding for
the relevant such JV Product. It is expressly understood that the direct and
indirect sale and distribution of JV Products for applications other than in the
Semiconductor Industry shall be allowed.

     8.2 The Shareholders intend to make available to the Corporation, as
contemplated by and subject to the terms and conditions of the Supply
Agreements, their entire respective semiconductor automation product lines. The
Corporation will select and combine the very best of these products lines to
supply Japanese Semiconductor Customers with JV Products offering the highest
product quality and service, all in accordance with and subject to the terms and
conditions of this Agreement and the Supply Agreements. Towards this end, the
parties acknowledge that: (i) Brooks has superior products in certain areas and,
except for Yaskawa's current customer programs in place as of the time of this
Agreement identified on Schedule A, which will continue through the current
product cycle with respect to products being supplied to the relevant customer
by Yaskawa and its Affiliates as of the date of this Agreement, and as otherwise
provided on Schedule A, Brooks shall be the Corporation's preferred supplier for
the Brooks Products; and (ii) Yaskawa has superior products in certain areas and
shall be the Corporation's preferred supplier for Yaskawa Products. Any
procurement by the Corporation of Brooks Products or Yaskawa Products that is
inconsistent with the Shareholders' respective preferred supplier status as set
forth in this Section 8.2 shall require the prior approval of the President and
the Executive Vice President acting jointly. The Corporation may purchase JV
Products, other than Brooks Products or Yaskawa Products, from either Yaskawa or
Brooks.

     8.3 The obligations of Yaskawa and Brooks set forth in this Section 8 shall
survive any Transfer of shares of the Corporation to a Permitted Transferee as
permitted by Section 3.2.1.

                        ARTICLE 9: TERM AND TERMINATION.

     9.1 Term. The term of this Agreement shall commence on the Effective Date
and shall continue in full force and effect for a period of 10 years thereafter
(or such longer and/or additional period as may be necessary to effect the
provisions of Section 13.11). At any time, at least 36 months prior to end of
the initial 10-year term or any extension term, either Shareholder may send
written notice to the

                                       11

<PAGE>

other Shareholder of the notifying Shareholder's desire to extend the term of
this Agreement. If each Shareholder has timely expressed a desire to extend the
then current term of the Agreement (with no other modifications) by written
notice (an "EXTENSION NOTICE") to the other, then the term shall be
automatically extended for an additional five-year term. If either Shareholder
fails to timely provide an Extension Notice with respect to the applicable
extension term, then the Agreement shall terminate at the end of the then
current term, unless the Agreement is extended and/or modified by the mutual
written agreement of the parties.

     9.2 Termination. Prior to the end of the term, the Shareholders may
terminate this Agreement, as provided below:

          9.2.1 The Shareholders may terminate this Agreement by mutual written
consent;

          9.2.2 Subject to Section 9.3, either Shareholder may terminate this
Agreement, in the event that the other Shareholder undergoes a Change of
Control, by written notice (the "SECTION 9.2.2 NOTICE") to the other Shareholder
and to the Corporation;

          9.2.3 Either Shareholder may terminate this Agreement, by written
notice to the other Shareholder and to the Corporation, in the event that a
Governmental Entity of competent jurisdiction shall have issued a nonappealable
final order, decree or ruling or taken any other nonappealable final action, in
each case having the effect of restraining, enjoining, terminating or otherwise
prohibiting (i) the continued existence of the Corporation, or (ii) the
continued ownership by either Shareholder of shares of common stock of the
Corporation; and

          9.2.4 Subject to Section 9.3, a Shareholder with respect to which no
Default Event has occurred (the "NON-DEFAULTING SHAREHOLDER") may terminate this
Agreement by giving written notice (the "SECTION 9.2.4 NOTICE") to the other
Shareholder with respect to which a Default Event has occurred (the "DEFAULTING
SHAREHOLDER") and to the Corporation. The following are each a "DEFAULT EVENT":

               (i) if (I) the Defaulting Shareholder has materially breached
this Agreement or its Supply Agreement with the Corporation (subject to Section
9.2.5), (II) the Non-Defaulting Shareholder has given the Defaulting Shareholder
written notice of such breach, describing such breach in reasonable detail,
(III) the Defaulting Shareholder has failed to cure such breach within 62 days
of receiving the notice of breach with respect thereto pursuant to clause
(i)(II) of this Section 9.2.4 (or, in the event that an additional cure period
is granted by the arbitrators in accordance with Section 11.2, during such
additional cure period), and (IV) the parties have not been able to agree upon
an adequate remedy (other than termination) for such breach;

               (ii) the Defaulting Shareholder shall (I) file a petition in
bankruptcy, (II) petition or apply to any tribunal for the appointment of a
receiver or any trustee for it or a substantial part of its assets, (III)
commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any
jurisdiction, or (IV) make an assignment for the benefit of creditors or take
any other similar action for the protection or benefit of creditors; or if there
shall have been filed any such petition or application, or any such petition
shall have

                                       12

<PAGE>

been commenced against it, in which an order for relief is entered or which
remains un-dismissed for a period of 60 days or more; or the Shareholder shall
consent in writing to any such petition, application or proceeding or order for
relief or the appointment of a receiver or any trustee for it or any substantial
part of any of its properties, or shall suffer any such receivership or
trusteeship to continue un-discharged for a period of 60 days or more;

               (iii) all or any portion of the Defaulting Shareholder's shares
in the Corporation are levied upon or attached (other than by the Non-Defaulting
Shareholder) in any proceeding, including any suit in equity, action at law or
other judicial, arbitral or administrative proceeding, and that levy or
attachment is not vacated or discharged within 60 days after the date on which
it is made; or

               (iv) there is a Transfer of the Defaulting Shareholder's shares
of common stock in the Corporation, except in compliance with Article 3.

          9.2.5 Notwithstanding anything to the contrary herein, no violation or
breach of Section 7.1 or Section 7.2 of this Agreement by a Shareholder (or its
officers, directors, employees, agents or representatives) shall constitute a
Default Event unless such violation or breach is directly attributable to either
Corporate Conduct or Disregard of Security (in each case, as defined below). For
purposes of this Section 9.2.5:

               (i) "CORPORATE CONDUCT" shall mean any action or omission of an
officer, director, employee, agent or representative of the relevant Shareholder
that is either (A) clearly sanctioned, knowingly condoned, directed or ratified
by the senior management or the Board of Directors of such Shareholder, or (B)
expressly permitted by the then-effective policies promulgated by the senior
management or the Board of Directors of such Shareholders;

               (ii) "DISREGARD OF SECURITY" shall mean the relevant
Shareholder's failure to maintain reasonable measures, customary in the
industry, calculated to protect confidential and/or proprietary information in
the possession of such Shareholder (including Confidential Information) from
impermissible disclosure and misuse, provided that any such failure shall be
determined on an aggregate basis considering all such measures maintained by
such Shareholder taken as a whole; and

               (iii) For the avoidance of doubt, by way of example but not
limitation, no Default Event shall be deemed to occur by reason of any (A)
action or omission of any officer, director, employee, agent or representative
of a Shareholder (whether intentional, willful, reckless, grossly negligent or
otherwise) that does not satisfy the requirements of either clause (i)(A) or
clause (i)(B) above, (B) any failure by a Shareholder to maintain a particular
information security measure as long as the measures maintained by such
Shareholder that are calculated to protect confidential and/or proprietary
information in the possession of such Shareholder, when viewed in the aggregate,
represent a level of information security that is reasonable and customary in
the industry, or (C) any violation or breach of Section 7.1 or Section 7.2 does
not satisfy the requirements of either clause (i)(A) or clause (i)(B) above and
that does not cause actual harm or damage to the Disclosing Party or its
business operations.

     9.3 Limitations on Certain Termination Rights.

          9.3.1 No Section 9.2.2 Notice may be given by a Shareholder with
respect to a Change of Control affecting the other Shareholder, and this
Agreement may not be terminated pursuant to

                                       13

<PAGE>

Section 9.2.2 by reason of such Change of Control, after expiration of 60 days
after the date on which notice of the occurrence of such Change of Control is
given to the terminating Shareholder.

          9.3.2 No Section 9.2.4 Notice may be given by the Non-Defaulting
Shareholder pursuant to Section 9.2.4(i) with respect to a material breach of
this Agreement by the Defaulting Shareholder, and this Agreement may not be
terminated by reason of such breach, after expiration of 120 days after the last
day of the last cure period applicable hereunder with respect to such breach
(including, without limitation, any additional cure period granted by the
arbitrators in accordance with Article 11 or any other extension of such cure
period granted by the Non-Defaulting Shareholder.

          9.3.3 No Section 9.2.4 Notice shall be effective (other than for the
purpose of commencing the applicable cure period under Section 9.2.4(i)), and
this Agreement shall continue in full force and effect, until the earlier of:
(i) the date on which the Shareholders agree in writing that the Non-Defaulting
Shareholder has the right to terminate this Agreement; or (ii) one of the
following dates depending on whether or not either party elects to commence the
dispute resolution procedures under Article 11 (I) if either Shareholder
commences the dispute resolution procedures contemplated by Article 11 with
respect to such Section 9.2.4 Notice within 30 days after such delivery in
accordance with Section 13.3, then the date on which the final decision or award
of the arbitrators grants the Non-Defaulting Shareholder such right; or (II) if
neither party commences the procedures contemplated by Article 11 within 30 days
after such delivery, then the date on which the cure period, if any, expires
without the breach being remedied or cured or if there is no cure period, then
the date on which such notice is given.

     9.4 Effects of Termination.

          9.4.1 If this Agreement terminates pursuant to the provisions of
Section 9.2.1, 9.2.2, 9.2.3 or 9.2.4, unless the Shareholders otherwise agree in
writing:

               (i) All of the rights and obligations of the parties under this
Agreement shall terminate, except that the provisions of Sections 7.1, 7.2, 7.3
and 9.4.2 and Articles 11 and 13 (together with, in each case, all related
definitions) shall survive such termination.

               (ii) Each of the agreements between the Corporation, on the one
hand, and either or both Shareholders (or their respective Affiliates), on the
other hand, shall terminate as of the effective date of the termination of this
Agreement.

               (iii) Each of the Shareholders shall assume all of the rights,
obligations and service commitments of the Corporation relating to the products
of such Shareholder distributed by the Corporation.

               (iv) Subject to Section 13.11, the Corporation shall be dissolved
according to Article 10 and the Shareholders shall cause the Corporation to
dissolve.

          9.4.2 For a period of 10 years after termination of this Agreement,
(i) neither Yaskawa nor any of Yaskawa's Affiliates shall offer and/or sell,
directly or indirectly, Brooks Products to Japanese Semiconductor Customers or
license, finance or otherwise assist any other entity to market or sell Brooks

                                       14

<PAGE>

Products to Japanese Semiconductor Customers except to the extent Yaskawa's
Brooks Products were being sold by Yaskawa to Japanese Semiconductor Customers
at the time of termination of this Agreement in compliance with the terms of
this Agreement and (ii) neither Brooks nor any of Brooks' Affiliates shall offer
and/or sell, directly or indirectly, Yaskawa Products to Japanese Semiconductor
Customers or license, finance or otherwise assist any other entity to market or
sell Yaskawa Products to Japanese Semiconductor Customers except to the extent
that Brooks' Yaskawa Products were being sold by Brooks to Japanese
Semiconductor Customers at the time of termination of this Agreement in
compliance with the terms of this Agreement. The parties acknowledge that, after
termination of this Agreement (I) it would be difficult or impossible to
separate and distinguish between Brooks' Intellectual Property and Yaskawa's
Intellectual Property learned or acquired by the employees of the Corporation
and/or the Shareholders (including employees of the Shareholders transferred to
the Corporation and former employees of the Corporation engaged by a Shareholder
after termination of this Agreement), and (II) the provisions of this Section
9.4.2 are reasonably necessary to protect Brooks' and Yaskawa's rights in their
respective Intellectual Property and the goodwill associated therewith. If the
termination of this Agreement is the result of a breach by a Defaulting
Shareholder, then such Defaulting Shareholder shall have no right to enforce
this Section 9.4.2 following the termination of this Agreement.

                            ARTICLE 10: DISSOLUTION.

     10.1 Dissolution. The Corporation shall be dissolved if so decided by the
Shareholders or as otherwise provided in this Agreement or by law. If the
Corporation is to be dissolved it shall be liquidated and dissolved in
accordance with the applicable laws and general practice in Japan. Except as
otherwise provided in Section 9.4.1(iii), the net assets of the Corporation
shall be distributed among the Shareholders pro rata to their respective
holdings of shares of common stock of the Corporation at the time of
dissolution.

                        ARTICLE 11: DISPUTE RESOLUTION.

     11.1 Voluntary Resolution of Disputes. Any claims, differences, disputes or
controversies arising out of or in connection with this Agreement, the Articles
of Incorporation of the Corporation, either of the Supply Agreements or any
other instrument, agreement or arrangement that is or may be entered into by the
parties in connection with the Corporation and its business (each, a "DISPUTE"),
including any question regarding its existence, validity, termination, breach or
performance, before any arbitration is commenced, shall first be referred to the
steering committee for resolution. If the Dispute is not resolved within 30
days, then the matter shall be referred to the chief executive officer of each
Shareholder, each of whom shall in good faith and with diligent negotiation
(including through at least one meeting in person) attempt to resolve the
Dispute. If the Dispute is not resolved by such chief executives within 30 days
from the day the Dispute was referred to the chief executives, any party to the
Dispute may institute arbitration under this Article 11 (such party, the
"INITIATING PARTY") by serving a demand for arbitration on each other party to
the Dispute. During the attempted executive resolution or arbitration pursuant
to this Article 11 neither party shall be prevented from seeking an injunction
or temporary restraining order in a court of law as provided in Section 11.5. In
deciding any arbitration under this Article 11, the arbitrators shall give
significant weight to the good faith and diligence with which each party to the
Dispute has sought to resolve it before the arbitration.

                                       15

<PAGE>

     11.2 Mandatory Arbitration. If an attempt at resolution contemplated by
Section 11.1 has not resulted in the Dispute being resolved within the time
period set forth in Section 11.1, the Dispute shall be finally settled by
binding arbitration under the UNCITRAL Arbitration Rules (the "UNCITRAL RULES").
Each party shall appoint an arbitrator and the two arbitrators so appointed
shall jointly appoint a third arbitrator; provided, however, that if they cannot
agree (or if one party refuses to appoint an arbitrator) within 30 days after
the initiation of the arbitration, then this third arbitrator shall be appointed
by the International Chamber of Commerce pursuant to the Rules of ICC as
Appointing Authority in UNCITRAL or other Ad Hoc Arbitration Proceedings (and
the ICC shall otherwise serve as the Appointing Authority (the "APPOINTING
AUTHORITY") for the arbitration proceedings hereunder). Disputes about
arbitration procedure shall be resolved by the arbitrators. The arbitrators may
proceed to an award notwithstanding the failure of a party to the Dispute to
participate in the proceedings. Discovery shall be limited to mutual exchange of
documents relevant to the dispute, controversy or claim; depositions shall not
be permitted unless agreed to by both parties. All counterclaims shall be
resolved in the same proceeding in which the original claims are brought. The
arbitrators shall be authorized to grant interim relief, including to prevent
the destruction of goods or documents involved in the dispute, protect trade
secrets and provide for security for a prospective monetary award; shall be
authorized to grant permanent injunctive relief or other specific performance;
and shall be specifically authorized to grant the Defaulting Party a cure period
in addition to the cure period provided for in clause (i) of Section 9.2.4 in
the event that the arbitrators determine that a party has materially breached
this Agreement and thereby became a Defaulting Party under clause (i) of Section
9.2.4. Subject to Section 11.4, the award of the arbitrators shall be the sole
and exclusive remedy of the parties and shall be enforceable in any court of
competent jurisdiction, subject only to revocation on grounds of fraud or clear
bias on the part of the arbitrators.

     11.3 Place and Language of Arbitration. Unless otherwise agreed by the
Shareholders, the place of arbitration shall be in Boston, Massachusetts, USA if
the Initiating Party is Yaskawa and shall be in Tokyo, Japan if the Initiating
Party is Brooks. The procedural law of the place of arbitration shall apply
where the UNCITRAL Rules are silent. The language to be used in the arbitration
proceedings shall be English.

     11.4 Matters that Parties May Litigate. Notwithstanding any other provision
of this Agreement, a party may bring a suit or action in a court of law:

               (i) to petition a court for injunctive relief with respect to a
matter arising under or relating to the Agreement;

               (ii) to seek judicial enforcement of an order or award granted by
the arbitrators under this Article 11; or

               (iii) as permitted under the Japanese Arbitration Law (Law No.
138 of 2003, as amended) or the U.S. Federal Arbitration Act, 9 U.S.C. Sections
1-16.

     11.5 Allocation of Arbitration Expense. In any arbitration, each party
shall bear the party's own expenses, including legal fees, except that:

                                       16

<PAGE>

               (i) The parties shall share equally the payment of fees charged
by the arbitrators and the Appointing Authority;

               (ii) Subject to Section 11.5(iii), the arbitrators may allocate
among the parties the costs, fees and other expenses relating to an arbitration
in any manner that the arbitrators shall determine to be appropriate in their
absolute discretion; and

               (iii) If the arbitrators determine that a party has initiated an
arbitration without a reasonable basis for doing so or that any claim or
argument of a party in an arbitration is unreasonable, the arbitrator shall to
that extent assess against that party the expenses incurred by the other parties
in connection with the arbitration, including reasonable attorneys' fees.

                            ARTICLE 12: DEFINITIONS.

As used in this Agreement, the capitalized terms defined in the protocol and
recitals have the meanings set forth next to them. Additionally, the following
terms shall have the following respective meanings:

<TABLE>
<S>                                   <C>
"AFFILIATE"                           shall mean, with respect to any Person,
                                      (i) any other Person that directly or
                                      indirectly controls such specified Entity
                                      or (ii) any Entity that directly or
                                      indirectly is controlled by, or is under
                                      common control with, such specified
                                      Person.

"AGREEMENT"                           shall mean this Agreement and its
                                      attachments, as this Agreement and its
                                      attachments may be amended, restated or
                                      otherwise modified from time to time.

"APPOINTING AUTHORITY"                shall have the meaning set forth in
                                      Section 11.2.

"BROOKS PRODUCTS"                     shall have the meaning given to the term
                                      "Brooks Products" in the Supply
                                      Agreements.

"BUDGET"                              shall have the meaning set forth in
                                      Section 6.1.1.

"BUDGET FINALIZATION DATE"            shall have the meaning set forth in
                                      Section 6.1.2.

"CHANGE OF CONTROL"                   shall mean, with respect to a Shareholder,
                                      the acquisition (whether by means of
                                      merger, consolidation, acquisition of
                                      securities or assets, or otherwise) by any
                                      Entity listed under the name of such Party
                                      on Schedule C (or by any Affiliate of such
                                      Entity) of (i) more than 50% of the
                                      outstanding voting securities of such
                                      Shareholder or (ii) all or substantially
                                      all of the assets of such Shareholder
                                      relating to such Party's obligations to
                                      supply products or services to the
                                      Corporation or otherwise to the business
                                      conducted by the Corporation as set forth
                                      in the first recital herein.
</TABLE>

                                       17

<PAGE>

<TABLE>
<S>                                   <C>
"CONFIDENTIAL INFORMATION"            shall have the meaning set forth in
                                      Section 7.1.

"CORPORATION'S ACCOUNTANTS"           shall have the meaning set forth in
                                      Section 4.2.

"DEFAULTING SHAREHOLDER"              shall have the meaning set forth in
                                      Section 9.2.4.

"DISCLOSING PARTY"                    shall have the meaning set forth in
                                      Section 7.1.

"DISPUTE"                             shall have the meaning set forth in
                                      Section 11.1.

"ENTITY"                              shall mean any corporation, limited
                                      liability company, limited or general
                                      partnership, trust, estate, unincorporated
                                      association, governmental agency, bureau,
                                      department or other body, or any other
                                      organization or entity.

"EXTENSION NOTICE"                    shall have the meaning set forth in
                                      Section 9.1.

"INITIATING PARTY"                    shall have the meaning set forth in
                                      Section 11.1.

"INTELLECTUAL PROPERTY"               shall have the meaning set forth in
                                      Section 7.3.

"JAPANESE SEMICONDUCTOR CUSTOMERS     shall have the meaning given to the term
                                      "Semiconductor Customer" in the Supply
                                      Agreements.

"JV PRODUCTS"                         shall mean the semiconductor robotics
                                      products to be supplied to the Corporation
                                      by the Shareholders pursuant to the Supply
                                      Agreements.

"NON-DEFAULTING SHAREHOLDER"          shall have the meaning set forth in
                                      Section 9.2.4.

"ORGANIZATIONAL CHART"                shall have the meaning set forth in
                                      Section 2.6.

"PERMITTED TRANSFEREE"                shall have the meaning set forth in
                                      Section 3.2.1.

"PERSON"                              shall mean any Entity or individual.

"RECEIVING PARTY"                     shall have the meaning set forth in
                                      Section 7.1.

"SECTION 9.2.2 NOTICE"                shall have the meaning set forth in
                                      Section 9.2.2.

"SECTION 9.2.4 NOTICE"                shall have the meaning set forth in
                                      Section 9.2.4.

"SEMICONDUCTOR INDUSTRY"              shall have the meaning set forth in the
                                      Supply Agreements.

"SHAREHOLDER INTELLECTUAL PROPERTY"   shall have the meaning set forth in
                                      Section 7.3.1.

"TRANSFER"                            shall have the meaning set forth in
                                      Section 3.1.
</TABLE>

                                       18
<PAGE>

<TABLE>
<S>                                   <C>
"UNCITRAL RULES"                      shall have the meaning set forth in
                                      Section 11.2.

"YASKAWA PRODUCTS"                    shall have the meaning set forth in the
                                      Supply Agreements.
</TABLE>

                           ARTICLE 13: MISCELLANEOUS.

     13.1 Remedies. The parties to this Agreement acknowledge and agree that
breach of any of the covenants of Corporation and the Shareholders set forth in
this Agreement is not fully compensable by payment of money damages and,
therefore, that the covenants of Corporation and the Shareholders set forth in
this Agreement may be enforced in equity by a decree requiring specific
performance. Without limiting the foregoing, if any dispute arises concerning
the sale or other disposition of any of the shares of stock subject to this
Agreement, the parties to this Agreement agree that an injunction may be issued
restraining the sale or other disposition of such shares of stock or rescinding
any such sale or other disposition, ending resolution of such controversy. Such
remedies shall be cumulative and nonexclusive and shall be in addition to any
other rights and remedies the parties may have under this Agreement.

     13.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of Japan without giving effect to the principles of
conflicts of law thereof.

     13.3 Notices. All notices and other communications under this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
(i) in person, (ii) to the extent receipt is confirmed, by telecopy, facsimile
or other electronic transmission service, or (iii) by an internationally
recognized overnight courier service, to the parties at the following addresses:

IF TO BROOKS:                           IF TO YASKAWA:

Brooks Automation, Inc.                 Yaskawa Electric Corporation
15 Elizabeth Drive                      2-1 Shiroishi, Kurosaki
Chelmsford, Massachusetts               Kitakyushu, Japan
01824 U.S.A.                            Attention: Mr. Koki Nakamura
Attention: Thomas Grilk, Esq.           Fax: +81-93-645-7918
Fax: +1-978-262-2511

WITH COPY TO:                           WITH COPY TO:

WilmerHale                              Masuda, Funai, Eifert & Mitchell, Ltd.
60 State Street                         203 N. LaSalle Street, Suite 2500
Boston, Massachusetts 02109             Chicago, IL 60601-1262
Attention: Mark G. Borden               Attention: Mary W. Shellenberg
Fax: +1-617-526-5000                    Fax: +1-312-245-7467

                                       19

<PAGE>

IF TO THE CORPORATION:

Yaskawa Brooks Automation, Inc.
2-1 Shiroishi, Kurosaki
Kitakyushu, Japan
Attention: President and Executive Vice President
Fax: +81__________________

The parties to this Agreement shall provide notice of any changes in the above
listed addresses in accordance with the procedures described above.

     13.4 Severability. Any term or provision of this Agreement that is invalid
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction.

     13.5 Amendments and Waivers. This Agreement may not be modified or amended,
and the performance or compliance with any term of this Agreement may not be
waived, in each case except by an instrument or instruments in writing signed
each of the Shareholders. The waiver by any party hereto of a breach of any term
or provision of this Agreement shall not be construed as a waiver of any
subsequent breach.

     13.6 Binding Effect. This Agreement shall be binding upon and inure solely
to the benefit of each party hereto and their respective heirs, legal
representatives, successors and permitted assigns.

     13.7 Counterparts. This Agreement may be executed by the parties hereto in
counterparts, each of which shall be deemed to be an original instrument, but
all of which together shall constitute one and the same instrument

     13.8 Recapitalizations, Exchanges, Etc. The provisions of this Agreement
shall apply, to the full extent set forth herein with respect to shares of
common stock of the Corporation, to any and all shares of capital stock of the
Corporation or any successor or assign of the Corporation (whether by merger,
consolidation, sale of assets, or otherwise) that may be issued in respect of,
in exchange for, or in substitution of the shares of the common stock originally
issued to the Shareholders, by reason of a stock dividend, stock split, stock
issuance, reverse stock split, combination, recapitalization, reclassification,
merger, consolidation, or otherwise.

     13.9 Entire Agreement; Headings. This Agreement, the provisions of the
Joint Venture Agreement, dated May 8, 2006, between the Shareholders that
survive in accordance with its terms, the Supply Agreements, together with all
exhibits attached hereto and therto, and the JV Agreement Section 4.1(C)
Agreement, dated June 30, 2006 constitute the entire agreement among the parties
hereto relating

                                       20

<PAGE>

to the subject matter hereof and thereof and supersede all prior agreements,
understandings, and arrangements, oral or written, among the parties hereto with
respect to the subject matter hereof and thereof. The headings in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

     13.10 Rules of Construction. Words denoting the singular include the plural
and vice versa. Words denoting a gender include all genders. References to a
particular article, section, clause, exhibit or schedule shall be a reference to
an article, section or clause of, or an exhibit or schedule to, this Agreement.
Words such as "hereunder", "hereto", "hereof" and "herein" and other words of
similar import shall, unless the context requires otherwise, refer to the whole
of this Agreement and not to any particular article, section or clause hereof. A
reference to "including" means including without limiting the generality of any
description preceding such term and shall not be construed to limit a general
statement, followed by or referable to an enumeration of specific matters, to
matters similar to those specifically mentioned.

     13.11 Further Assurances. Each of the parties to this Agreement, hereby
agrees, without any further consideration, to take any further actions and to
execute and deliver any further instruments or agreements, necessary or
advisable in order to effectuate the intents and purposes of this Agreement.
Each of the parties further agrees to take such commercially reasonable actions
as are necessary and available under applicable law to effect the parties'
intentions as set forth under the provisions of Section 9.4.2 in the event of
any challenge, legal or otherwise, to such Section 9.4.2; provided that in the
event of any challenge, legal or otherwise, to such Section 9.4.2 by the Japan
Fair Trade Commission, any other governmental authority in Japan or any third
party, Yaskawa shall (i) be responsible for responding to such challenge, (ii)
have the right to control and direct the representation of the parties in
connection with such challenge, including negotiations relating to such
challenge, (iii) keep Brooks reasonably informed as to the status and progress
of such challenge and the strategy of Yaskawa with respect to such challenge,
(iv) engage counsel who may be counsel to Yaskawa, at Yaskawa's cost to
represent and defend Yaskawa, Brooks and the Corporation in connection with any
such challenge (to the extent joint representation is ethically permissible),
including negotiations relating to such challenge, with such counsel being under
the direction and control of Yaskawa, and (v) bear all costs and expenses,
including legal fees, of Yaskawa, Brooks and the Corporation incurred in
connection with such challenge, other than (A) costs or expenses related to the
production of documents of Brooks, which shall be borne by Brooks, and (B) costs
or expenses, including legal fees, incurred by Brooks in connection with the
challenge in which separate counsel has been engaged. Without limiting the
generality of the foregoing, and notwithstanding anything to the contrary in
this Agreement, if the provisions of Section 9.4.2 above are found to be invalid
or unenforceable, in whole or in part, by any governmental, administrative,
regulatory, legislative, judicial or arbitral authority or tribunal, with the
effect that the term of the restrictive covenants set forth in the first
sentence of such Section 9.4.2 (the "SECTION 9.4.2 TERM") is reduced or
eliminated, then, unless Brooks and Yaskawa otherwise expressly agree in
writing, (i) if this Agreement remains in effect as of immediately prior to the
time of such finding of invalidity or unenforceability, then the term of this
Agreement specified in Section 9.1 above shall be extended by the period of such
reduction (or, if the Section 9.4.2 Term is eliminated, then by the full stated
amount of the Section 9.4.2 Term), or (ii) otherwise, the effectiveness of this
Agreement shall be reinstated, the

                                       21

<PAGE>

Corporation shall (to the extent necessary) be re-established by the
Shareholders, and the business of the Corporation described in the first recital
herein shall again be conducted through the Corporation in accordance with
Article 8 of this Agreement, until expiration of the period of such reduction
(or, if the Section 9.4.2 Term is eliminated, then by the full stated amount of
the Section 9.4.2 Term); provided that if this Agreement was earlier terminated
as a result of a breach by a Defaulting Shareholder, then the provisions of this
sentence shall be operative solely at the option of the Non-Defaulting
Shareholder, exercisable by written notice to the Defaulting Shareholder and, if
the Corporation is then in existence, to the Corporation.

            [THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK.]

                                       22

<PAGE>

          IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        YASKAWA ELECTRIC CORPORATION

                                        By: /s/ Koji Toshima
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

                                        BROOKS AUTOMATION, INC.

                                        By: /s/ Edward C. Grady
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

                                        YASKAWA BROOKS AUTOMATION, INC.

                                        By: /s/ Hiroyuki Ougi
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

                                       23<PAGE>

                                                                         EX-10.3

                                                                  EXECUTION COPY

                          AGREEMENT AND PLAN OF MERGER

                                dated May 8, 2006

                                  by and among

                            BROOKS AUTOMATION, INC.,

                       BRAVO ACQUISITION SUBSIDIARY, INC.

                                       and

                             SYNETICS SOLUTIONS INC.

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
                                    ARTICLE I
                                   THE MERGER
1.1.   The Merger........................................................     1
1.2.   The Closing.......................................................     1
1.3.   Actions at the Closing............................................     1
1.4.   Additional Action.................................................     2
1.5.   Conversion of Shares..............................................     2
1.6.   Dissenting Shares.................................................     2
1.7.   Options...........................................................     3
1.8.   Articles of Incorporation and By-laws.............................     3
1.9.   Directors.........................................................     3
1.10.  No Further Rights.................................................     4
1.11.  Closing of Transfer Books.........................................     4

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY
2.1.   Organization, Qualification and Corporate Power...................     4
2.2.   Capitalization....................................................     4
2.3.   Authorization of Transaction......................................     5
2.4.   Noncontravention..................................................     6
2.5.   No Subsidiaries...................................................     6
2.6.   Financial Statements..............................................     6
2.7.   Absence of Certain Changes........................................     6
2.8.   Undisclosed Liabilities...........................................     6
2.9.   Tax Matters.......................................................     7
2.10.  Assets............................................................     8
2.11.  Real Property.....................................................     9
2.12.  Real Property Leases..............................................     9
2.13.  Intellectual Property.............................................     9
2.14.  Inventory.........................................................    11
2.15.  Contracts.........................................................    11
2.16.  Accounts Receivable...............................................    12
2.17.  Powers of Attorney................................................    12
2.18.  Insurance.........................................................    12
2.19.  Litigation........................................................    13
2.20.  Warranties........................................................    13
2.21.  Employees.........................................................    13
2.22.  Employee Benefits.................................................    14
2.23.  Environmental Matters.............................................    15
2.24.  Legal Compliance..................................................    16
2.25.  Customers and Suppliers...........................................    16
2.26.  Permits...........................................................    16
2.27.  Certain Business Relationships With Affiliates....................    16
2.28.  Brokers' Fees.....................................................    16
2.29.  Books and Records.................................................    16
2.30.  Disclosure........................................................    17
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<S>                                                                         <C>
                                   ARTICLE III
         REPRESENTATIONS AND WARRANTIES OF THE BUYER AND THE TRANSITORY
                                   SUBSIDIARY
3.1.   Organization and Corporate Power..................................    17
3.2.   Authorization of Transaction......................................    17
3.3.   Noncontravention..................................................    17

                                   ARTICLE IV
                                    COVENANTS
4.1.   Closing Efforts...................................................    17
4.2.   Governmental and Third-Party Notices and Consents.................    18
4.3.   Operation of Business.............................................    19
4.4.   Access to Information.............................................    22
4.5.   Notice of Breaches................................................    22
4.6.   Exclusivity.......................................................    23
4.7.   Expenses..........................................................    23
4.8.   Indemnification...................................................    23
4.9.   Open Inventory....................................................    24
4.10.  Employees.........................................................    24
4.11.  Israeli Operations................................................    24
4.12.  Permitted Credits.................................................    24

                                    ARTICLE V
                      CONDITIONS TO CONSUMMATION OF MERGER
5.1.   Conditions to Obligations of the Buyer and the Transitory
          Subsidiary.....................................................    24
5.2.   Conditions to Obligations of the Company..........................    26

                                   ARTICLE VI
                                 INDEMNIFICATION
6.1.   Indemnification by the Indemnifying Securityholder................    26
6.2.   Indemnification by the Buyer......................................    27
6.3.   Indemnification Claims............................................    27
6.4.   Survival of Representations and Warranties........................    29
6.5.   Limitations.......................................................    29

                                   ARTICLE VII
                                   TERMINATION
7.1.   Termination of Agreement..........................................    30
7.2.   Effect of Termination.............................................    30

                                  ARTICLE VIII
                             POST-CLOSING COVENANTS
8.1.   Proprietary Information.............................................  31
8.2.   Solicitation and Hiring.............................................  31

                                   ARTICLE IX
                                   DEFINITIONS

                                    ARTICLE X
                                  MISCELLANEOUS
10.1.  Press Releases and Announcements..................................    39
10.2.  No Third Party Beneficiaries......................................    39
</TABLE>

                                      -ii-

<PAGE>

<TABLE>
<S>                                                                         <C>
10.3.  Entire Agreement..................................................    39
10.4.  Succession and Assignment.........................................    39
10.5.  Counterparts and Facsimile Signature..............................    39
10.6.  Headings..........................................................    39
10.7.  Notices...........................................................    39
10.8.  Governing Law.....................................................    40
10.9.  Amendments and Waivers............................................    40
10.10. Severability......................................................    41
10.11. Submission to Jurisdiction........................................    41
10.12. Construction......................................................    41
</TABLE>

Exhibit A.   Form of U.S. Supply Agreement

Opinion A.   Form of Opinion of Counsel to the Company
Opinion B.   Form of Opinion of Counsel to the Primary Shareholder
Opinion C.   Form of Opinion of Counsel to the Buyer
Opinion D.   Form of Opinion of Counsel to the Transitory Subsidiary

Disclosure Schedule

                                     -iii-

<PAGE>

                          AGREEMENT AND PLAN OF MERGER

     This Agreement and Plan of Merger (this "Agreement") is entered into and
made effective as of May 8, 2006 by and among Brooks Automation, Inc., a
Delaware corporation (the "Buyer"), Bravo Acquisition Subsidiary, Inc. an Oregon
corporation and wholly owned subsidiary of the Buyer (the "Transitory
Subsidiary"), and Synetics Solutions Inc., an Oregon corporation (the
"Company").

     This Agreement contemplates a merger of the Transitory Subsidiary into the
Company. In such merger, the holders of shares of common stock of the Company
will receive cash in exchange for such shares.

     Certain capitalized terms used in this Agreement have the meanings ascribed
to them in Article IX.

     In consideration of the representations, warranties and covenants herein
contained, the Parties agree as follows.

                                    ARTICLE I
                                   THE MERGER

     1.1. The Merger. Upon and subject to the terms and conditions of this
Agreement, the Transitory Subsidiary shall merge with and into the Company at
the Effective Time. From and after the Effective Time, the separate corporate
existence of the Transitory Subsidiary shall cease and the Company shall
continue as the Surviving Corporation. The Merger shall have the effects set
forth in Section 60.497 of the Oregon Business Corporation Act.

     1.2. The Closing. The Closing shall take place at the offices of Wilmer
Cutler Pickering Hale and Dorr LLP in Boston, Massachusetts (or remotely via the
exchange of documents and signatures), commencing at 9:00 a.m., Eastern time, on
the Closing Date; provided, however, that the Closing may only occur if on the
Closing Date the Joint Venture Conditions have been satisfied or waived.

     1.3. Actions at the Closing. At the Closing:

          (a) the Company shall deliver to the Buyer and the Transitory
Subsidiary the various certificates, instruments and documents referred to in
Section 5.1;

          (b) the Buyer and the Transitory Subsidiary shall deliver to the
Company the various certificates, instruments and documents referred to in
Section 5.2;

          (c) the Surviving Corporation shall file with the Secretary of State
of the State of Oregon the Articles of Merger;

          (d) each Company Shareholder, other than holders of Dissenting Shares,
shall deliver to the Buyer for cancellation the certificate(s) representing such
Company Shareholder's Company Shares;

          (e) the Buyer or the Surviving Corporation shall pay (by wire
transfer) to each Company Shareholder for each Common Share held by such Company
Shareholder the Price Per Share;

          (f) the Buyer shall pay (by wire transfer) to Mizuho Corporate Bank,
Ltd. the outstanding principal plus accrued interest through the Closing Date
(the "Mizuho Payoff Amount") on (i) the Master Promissory Note, dated November
28, 2001, issued by the Company to Mizuho Corporate

<PAGE>

Bank, Ltd. and (ii) the Master Promissory Note, dated June 15, 2001, issued by
the Company to Mizuho Corporate Bank, Ltd, and the Company shall deliver to the
Buyer the Release Documentation with respect to such promissory notes;

          (g) the Buyer shall pay (by wire transfer) to The Bank of
Tokyo-Mitsubishi UFJ, Ltd the outstanding principal plus accrued interest
through the Closing Date (the "BTM Payoff Amount") under the Uncommitted Loan
Agreement, dated June 1, 2003, between The Bank of Tokyo-Mitsubishi UFJ, Ltd and
the Company, and the Company shall deliver to the Buyer the Release
Documentation with respect to such agreement;

          (h) the Buyer shall pay (by wire transfer) to Sumitomo Mitsui Banking
Corporation the outstanding principal plus accrued interest through the Closing
Date (the "SMBC Payoff Amount") under the Uncommitted and Revolving Credit Line
Agreement, dated June 8, 2005, between Sumitomo Mitsui Banking Corporation and
the Company, and the Company shall deliver to the Buyer the Release
Documentation with respect to such credit line;

          (i) the Surviving Corporation shall pay (by wire transfer) to the
Primary Shareholder and its Affiliates, as appropriate, an amount equal to the
ICO Credit in payment of a portion of the Intercompany Obligations, consisting
of those Intercompany Obligations owed by the Company and first maturing or
otherwise becoming due after the Closing Date); and

          (j) the Company and the Primary Shareholder shall execute the U.S.
Supply Agreement.

     1.4. Additional Action. The Surviving Corporation shall after the Effective
Time, take any action, including executing and delivering any document, in the
name and on behalf of either the Company or the Transitory Subsidiary, in order
to consummate the transactions contemplated by this Agreement.

     1.5. Conversion of Shares. At the Effective Time, by virtue of the Merger
and without any action on the part of any Party or the holder of any of the
following securities:

          (a) Each Common Share issued and outstanding immediately prior to the
Effective Time (other than Common Shares owned beneficially by the Buyer or the
Transitory Subsidiary, Dissenting Shares and Common Shares held in the Company's
treasury) shall be converted into and represent the right to receive the Per
Share Price in cash per Common Share, without any interest thereon.

          (b) Each Company Share held in the Company's treasury immediately
prior to the Effective Time and each Company Share owned beneficially by the
Buyer or the Transitory Subsidiary shall be cancelled and retired without
payment of any consideration therefor.

          (c) Each share of common stock, $0.0001 par value per share, of the
Transitory Subsidiary issued and outstanding immediately prior to the Effective
Time shall be converted into and thereafter evidence one share of common stock,
$0.0001 par value per share, of the Surviving Corporation.

     1.6. Dissenting Shares.

          (a) Holders of Dissenting Shares shall be entitled to their rights
under Sections 60.551 to 60.594 of the Oregon Business Corporation Act with
respect to such Dissenting Shares. Dissenting Shares shall not be converted into
or represent the right to receive the Merger Consideration unless the Company
Shareholder holding such Dissenting Shares shall have forfeited its

                                      -2-

<PAGE>

right to appraisal under Sections 60.551 to 60.594 of the Oregon Business
Corporation Act or properly withdrawn its demand for appraisal. If such Company
Shareholder has so forfeited or withdrawn its right to appraisal of Dissenting
Shares, then, (i) as of the occurrence of such event, such holder's Dissenting
Shares shall cease to be Dissenting Shares and shall be converted into and
represent the right to receive the Merger Consideration payable in respect of
such Company Shares pursuant to Section 1.5 without interest thereon, and (ii)
promptly following the occurrence of such event, the Buyer or the Surviving
Corporation shall deliver to such Company Shareholder a payment representing the
payment to which such Company Shareholder is entitled pursuant to Section
1.3(e). Each holder of Dissenting Shares that, pursuant to Sections 60.551 to
60.594 of the Oregon Business Corporation Act, becomes entitled to payment of
the value of the Dissenting Shares owned by such holder will receive payment
therefore but only after the value therefore has been agreed upon or finally
determined pursuant to Sections 60.551 to 60.594 of the Oregon Business
Corporation Act. Any portion of the Merger Consideration that would otherwise
have been payable with respect to Dissenting Shares if such shares were not
Dissenting Shares will be retained by Buyer.

          (b) The Company shall give the Buyer (i) prompt notice of any notice
of intent to demand payment or written demands for appraisal of any Company
Shares, withdrawals of such demands, and any other instruments that relate to
such demands received by the Company and (ii) the opportunity to direct all
negotiations and proceedings with respect to demands for appraisal under the
Oregon Business Corporation Act. The Company shall not, except with the prior
written consent of the Buyer, make any payment with respect to any demands for
appraisal of Company Shares or offer to settle or settle any such demands.

     1.7. Options.

          (a) Prior to the Effective Time, the Company shall enter into an
agreement, in a form reasonably satisfactory to the Buyer, with each holder of
an outstanding Option providing for the termination of such Option effective as
of the Effective Time, without any payment being made to the holder of such
Option in connection with such termination, provided that no such agreement with
respect to an Option shall be required if the existing terms of such Option
provide, to the satisfaction of the Buyer, that such Option shall terminate as
of or prior to the Effective Time without any payment being made to the holder
of such Option.

          (b) The Company shall terminate all of the Company Stock Plans
immediately prior to the Effective Time.

     1.8. Articles of Incorporation and By-laws.

          (a) The articles of incorporation of the Surviving Corporation
immediately following the Effective Time shall be amended and restated in their
entirety to be the same as the articles of incorporation of the Transitory
Subsidiary immediately prior to the Effective Time, except that (i) the name of
the corporation set forth therein shall be changed to the name of the Company
and (ii) the identity of the incorporator shall be deleted.

          (b) The by-laws of the Surviving Corporation immediately following the
Effective Time shall be the same as the by-laws of the Transitory Subsidiary
immediately prior to the Effective Time, except that the name of the corporation
set forth therein shall be changed to the name of the Company.

     1.9. Directors. At the Effective Time, the directors of the Transitory
Subsidiary shall continue in office as the directors of the Surviving
Corporation and such directors shall hold office in accordance with and subject
to the articles of incorporation and by-laws of the Surviving Corporation.

                                      -3-

<PAGE>

     1.10. No Further Rights. From and after the Effective Time, no Company
Shares shall be deemed to be outstanding, and holders of certificates formerly
representing Company Shares shall cease to have any rights with respect thereto
except as provided herein or by law.

     1.11. Closing of Transfer Books. At the Effective Time, the stock transfer
books of the Company shall be closed and no transfer of Company Shares shall
thereafter be made. If, after the Effective Time, certificates formerly
representing Company Shares are presented to the Buyer or the Surviving
Corporation, they shall be cancelled and exchanged for the Merger Consideration
in accordance with Section 1.5 and to applicable law in the case of Dissenting
Shares.

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

     The Company represents and warrants to the Buyer that, except as set forth
in the Disclosure Schedule, the statements contained in this Article II are true
and correct as of the date of this Agreement and will be true and correct as of
the Closing as though made as of the Closing, except to the extent such
representations and warranties are specifically made as of a particular date (in
which case such representations and warranties will be true and correct as of
such date). The Disclosure Schedule shall be arranged in sections and
subsections corresponding to the numbered and lettered sections and subsections
contained in this Article II. For purposes of the representations and warranties
of the Company contained herein, disclosure in any section or subsection of the
Disclosure Schedule shall qualify other sections and subsections in this Article
II only to the extent it is reasonably apparent from a reading of the Disclosure
Schedule that such disclosure is applicable to such other sections and
subsections. For purposes of this Article II, the phrase "to the knowledge of
the Company" or any phrase of similar import shall be deemed to refer to the
actual knowledge of the executive officers of the Company, as well as any other
knowledge that such executive officers would have possessed had they made
reasonable inquiry of appropriate employees and agents of the Company with
respect to the matter in question. The inclusion of any information in any
section of the Disclosure Schedule or in documents delivered by or on behalf of
the Company pursuant to this Agreement shall not be deemed to be an admission or
evidence of materiality.

     2.1. Organization, Qualification and Corporate Power. The Company is a
corporation duly organized and validly existing under the laws of the State of
Oregon. The Company is duly qualified to conduct business and is in corporate
good standing under the laws of each jurisdiction listed in Section 2.1 of the
Disclosure Schedule, which jurisdictions constitute the only jurisdictions in
which the nature of the Company's businesses or the ownership or leasing of its
properties requires such qualification, except for those jurisdictions in which
the failure to be so qualified or in good standing, individually or in the
aggregate, has not had and would not reasonably be expected to have a Company
Material Adverse Effect. The Company has all requisite corporate power and
authority to carry on the businesses in which it is engaged and to own and use
the properties owned and used by it. The Company has furnished to the Buyer
complete and accurate copies of its articles of incorporation and by-laws, each
as amended to date. The Company is not in default under or in violation of any
provision of its articles of incorporation or by-laws.

     2.2. Capitalization.

          (a) The authorized capital stock of the Company consists of (i)
100,000,000 Common Shares, of which, as of the date of this Agreement,
11,998,285 shares are issued and outstanding and no shares are held in the
treasury of the Company, and (ii) 10,000,000 Preferred Shares, all of which are
undesignated and none of which are issued and outstanding as of the date of this
Agreement.

          (b) Section 2.2 of the Disclosure Schedule sets forth a complete and
accurate list, as of the date of this Agreement, of the holders of Common
Shares, showing the number of Common Shares

                                      -4-

<PAGE>

held by each such holder. None of the outstanding Common Shares constitute
restricted stock or are otherwise subject to a repurchase or redemption right by
the Company. All of the issued and outstanding Common Shares have been duly
authorized and validly issued and are fully paid and nonassessable. All of the
issued and outstanding Common Shares were offered, issued and sold by the
Company in compliance with all applicable federal and state securities laws.

          (c) Section 2.2 of the Disclosure Schedule sets forth a complete and
accurate list, as of the date of this Agreement of (i) the Company Stock Plan,
indicating the number of Common Shares issued to date under the Company Stock
Plan, the number of Common Shares subject to outstanding options under the
Company Stock Plan and the number of Common Shares reserved for future issuance
under the Company Stock Plan; and (ii) all holders of outstanding Options issued
under the Company Stock Plan, including, with respect to each outstanding
Option, the number of Common Shares subject to such Option, the exercise price,
the date of grant, and the vesting schedule (including any acceleration
provisions with respect thereto). The Company has provided to the Buyer a
complete and accurate copy of the Company Stock Plan, and all outstanding stock
option agreements evidencing Options. The Company has no stock option plan or
equity-related plan other than the Company Stock Plan. All of the Common Shares
subject to Options will be, upon issuance pursuant to the valid exercise of such
instruments and full payment of the exercise price, duly authorized, validly
issued, fully paid and nonassessable.

          (d) Except as set forth in this Section 2.2, (i) no subscription,
Warrant, option, convertible security or other right (contingent or otherwise)
to purchase or acquire any shares of capital stock of the Company is authorized
or outstanding, (ii) the Company has no obligation (contingent or otherwise) to
issue any subscription, Warrant, option, convertible security or other such
right, or to issue or distribute to holders of any shares of its capital stock
any evidences of indebtedness or assets of the Company, (iii) the Company has no
obligation (contingent or otherwise) to purchase, redeem or otherwise acquire
any shares of its capital stock or any interest therein or to pay any dividend
or to make any other distribution in respect thereof, and (iv) there are no
outstanding or authorized stock appreciation, phantom stock or similar rights
with respect to the Company.

          (e) There is no agreement, written or oral, between the Company and
any holder of its securities, or, to the Company's knowledge, among any holders
of its securities, relating to the sale or transfer (including agreements
relating to rights of first refusal, co-sale rights or "drag-along" rights),
registration under the Securities Act, or voting, of securities of the Company.

     2.3. Authorization of Transaction.

          (a) The Company has all requisite corporate power and authority to
execute and deliver this Agreement and to perform its obligations hereunder and
to consummate the transactions contemplated hereby. The execution and delivery
by the Company of this Agreement and the consummation by the Company of the
transactions contemplated hereby have been duly and validly authorized by all
necessary corporate action on the part of the Company. This Agreement has been
duly and validly executed and delivered by the Company and constitutes a valid
and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except (i) as may be limited by (x) applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors' rights generally and (y)
the effect of rules of law governing the availability of equitable remedies and
(ii) as rights to indemnity or contribution may be limited under federal or
state securities laws or by principles of public policy thereunder.

          (b) The affirmative vote by the holders of a majority of the
outstanding Common Shares voting as a single class on the record date for a
meeting of shareholders of the Company to consider this Agreement present or
represented by proxy is the only vote of the holders of any class or

                                       -5-

<PAGE>

series of Company's capital stock or other securities necessary to adopt this
Agreement and for consummation by Company of the other transactions contemplated
by this Agreement. There are no bonds, debentures, notes or other indebtedness
of Company having the right to vote (or convertible into, or exchangeable for,
securities having the right to vote) on any matters on which shareholders of
Company may vote.

     2.4. Noncontravention. Subject to the filing of the Articles of Merger as
required by the Oregon Business Corporation Act, neither the execution and
delivery by the Company of this Agreement nor the consummation by the Company of
the transactions contemplated hereby, will (a) conflict with or violate any
provision of the articles of incorporation or by-laws of the Company, (b)
require on the part of the Company any notice to or filing with, or any permit,
authorization, consent or approval of, any Governmental Entity, (c) materially
conflict with, result in a material breach of, constitute (with or without due
notice or lapse of time or both) a material default under, result in the
acceleration of obligations under, create in any Person the right to terminate,
modify or cancel, or require any notice, consent or waiver under, any material
contract or instrument to which the Company is a party or by which the Company
is bound or to which any of its assets is subject, (d) result in the imposition
of any Security Interest upon any assets of the Company or (e) violate any
order, writ, injunction, decree, statute, rule or regulation applicable to the
Company or any of its properties or assets.

     2.5. No Subsidiaries. The Company does not have, and since inception has
never had, any Subsidiary. The Company does not control directly or indirectly
or have any direct or indirect equity participation or similar interest in any
corporation, partnership, limited liability company, joint venture, trust or
other business association or entity.

     2.6. Financial Statements. The Company has provided to the Buyer the
Financial Statements. The Financial Statements have been prepared in accordance
with GAAP applied on a consistent basis throughout the periods covered thereby
(except as may be indicated in the notes thereto), fairly present the financial
condition, results of operations and cash flows of the Company as of the
respective dates thereof and for the periods referred to therein and are
consistent with the books and records of the Company; provided, however, that
the Financial Statements referred to in clause (b) of the definition of such
term are subject to normal recurring year-end adjustments (which will not be
material) and do not include footnotes.

     2.7. Absence of Certain Changes. Since the Most Recent Balance Sheet Date,
(a) there has occurred no event or development that, individually or in the
aggregate, has had, or could reasonably be expected to have in the future, a
Company Material Adverse Effect, and (b) the Company has not taken any of the
actions set forth in paragraphs (i) through (xii) and (xv) of Section 4.3. Since
June 13, 2005, there has been no increase in the price of any product or service
provided by the Primary Shareholder to the Company, except for increases listed
in Section 2.7 of the Disclosure Schedule and increases related to changes in
the Specifications (as defined in the form of the U.S. Supply Agreement attached
as Exhibit A hereto) for the applicable product or service.

     2.8. Undisclosed Liabilities. The Company has no liability (whether known
or unknown, whether absolute or contingent, whether liquidated or unliquidated
and whether due or to become due), except for (a) liabilities shown on the Most
Recent Balance Sheet, (b) liabilities that have arisen since the Most Recent
Balance Sheet Date in the Ordinary Course of Business, and (c) contractual and
other liabilities incurred in the Ordinary Course of Business that are not
required by GAAP to be reflected on a balance sheet.

                                      -6-

<PAGE>

     2.9. Tax Matters.

          (a) The Company has filed on a timely basis all Tax Returns that it
was required to file, and all such Tax Returns were complete and accurate in all
material respects. The Company is not and has never been a member of a group of
corporations with which it has filed (or been required to file) consolidated,
combined or unitary Tax Returns. The Company has paid on a timely basis all
Taxes that were due and payable. The unpaid Taxes of the Company for tax periods
through the Most Recent Balance Sheet Date do not exceed the accruals and
reserves for Taxes (excluding accruals and reserves for deferred Taxes
established to reflect timing differences between book and Tax income) set forth
on the Most Recent Balance Sheet and all unpaid Taxes of the Company for all Tax
periods commencing after the Most Recent Balance Sheet arose in the Ordinary
Course of Business and are of a type and amount commensurate with Taxes
attributable to prior similar periods. The Company is not a party to or bound by
any Tax indemnity, Tax sharing, Tax allocation or similar agreement. All Taxes
that the Company is or was required by law to withhold or collect have been duly
withheld or collected and, to the extent required, have been paid to the proper
Governmental Entity.

          (b) The Company has delivered or made available to the Buyer (i)
complete and accurate copies of all Tax Returns of the Company relating to Taxes
for all taxable periods for which the applicable statute of limitations has not
yet expired, and (ii) complete and correct copies of all private letter rulings,
revenue agent reports, information document requests, notices of proposed
deficiencies, deficiency notices, protests, petitions, closing agreements,
settlement agreements, pending ruling requests and any similar documents
submitted by, received by, or agreed to by or on behalf of the Company relating
to Taxes for all taxable periods for which the statute of limitations has not
yet expired. The federal income Tax Returns of the Company have been audited by
the Internal Revenue Service or are closed by the applicable statute of
limitations for all taxable years through the taxable year specified in Section
2.9(b) of the Disclosure Schedule. No examination or audit of any Tax Return of
the Company by any Governmental Entity is currently in progress or, to the
knowledge of the Company, threatened or contemplated. The Company has not been
informed by any jurisdiction that the jurisdiction believes that the Company was
required to file any Tax Return that was not filed. The Company has not (i)
waived any statute of limitations with respect to Taxes or agreed to extend the
period for assessment or collection of any Taxes, (ii) requested any extension
of time within which to file any Tax Return (other than automatic extensions for
which no approval of the applicable taxing authority is requested), which Tax
Return has not yet been filed, or (iii) executed or filed any power of attorney
with any taxing authority.

          (c) The Company (i) is not a "consenting corporation" within the
meaning of former Section 341(f) of the Code, and none of the assets of the
Company are subject to an election under former Section 341(f) of the Code; (ii)
has not been a United States real property holding corporation within the
meaning of Section 897(c)(2) of the Code during the applicable period specified
in Section 897(c)(l)(A)(ii) of the Code; (iii) has not made any payment, is not
obligated to make any payment, and is not a party to any agreement that could
obligate it to make any payment that may be treated as an "excess parachute
payment" under Section 280G of the Code (without regard to Sections 280G(b)(4)
and 280G(b)(5) of the Code); (iv) has no actual or potential liability for any
Taxes of any Person (other than the Company) under Treasury Regulation Section
1.1502-6 (or any similar provision of federal, state, local or foreign law), or
as a transferee or successor, by contract or otherwise; and (v) is not and has
not been required to make a basis reduction pursuant to Treasury Regulation
Section 1.1502-20(b) or Treasury Regulation Section 1.337(d)-2(b).

          (d) None of the assets of the Company (i) is "tax-exempt use property"
within the meaning of Section 168(h) of the Code or (ii) directly or indirectly
secures any debt the interest on which is tax exempt under Section 103(a) of the
Code.

                                      -7-

<PAGE>

          (e) There are no adjustments under Section 481 of the Code (or any
similar adjustments under any provision of the Code or the corresponding
foreign, state or local Tax laws) that are required to be taken into account by
the Company in any period ending after the Closing Date by reason of a change in
method of accounting in any taxable period ending on or before the Closing Date
or as a result of the consummation of the transactions contemplated by this
Agreement.

          (f) The Company has not distributed to its shareholders or security
holders stock or securities of a controlled corporation, nor has stock or
securities of the Company been distributed, in a transaction to which Section
355 of the Code applies (i) in the two years prior to the date of this Agreement
or (ii) in a distribution that could otherwise constitute part of a "plan" or
"series of related transactions" (within the meaning of Section 355(e) of the
Code) that includes the transactions contemplated by this Agreement.

          (g) The Company owns no interest in an entity that is characterized as
a partnership for federal income Tax purposes.

          (h) Schedule 2.9(i) of the Company Disclosure Schedule sets forth each
jurisdiction (other than United States federal) in which the Company has filed a
Tax Return and each jurisdiction that has sent notices or communications of any
kind requesting information relating to the Company's Tax nexus with such
jurisdiction.

          (i) The Company will not be required to include any item of income in,
or exclude any item of deduction from, taxable income for any period (or any
portion thereof) ending after the Closing Date as a result of any (i) closing
agreement as described in Section 7121 of the Code (or any corresponding or
similar provision of state, local or foreign Tax law) executed on or prior to
the Closing Date, (ii) installment sale or other open transaction disposition
made on or prior to the Closing Date, or (iii) prepaid amount received on or
prior to the Closing Date.

          (j) There are no liens or other encumbrances with respect to Taxes
upon any of the assets or properties of the Company, other than with respect to
Taxes not yet due and payable.

          (k) Each Company Plan that is a "nonqualified deferred compensation
plan" (as defined in Code Section 409A(d)(1)) has been operated since January 1,
2005 in good faith compliance with Code Section 409A and Internal Revenue
Service Notice 2005-1. No Company Plan that is a "nonqualified deferred
compensation plan" has been materially modified (as determined under Internal
Revenue Service Notice 2005-1) after October 3, 2004. No event has occurred that
would be treated by Code Section 409A(b) as a transfer of property for purposes
of Code Section 83. No stock option or equity unit option granted under any
Company Plan has an exercise price that has been or may be less than the fair
market value of the underlying stock or equity units (as the case may be) as of
the date such option was granted or has any feature for the deferral of
compensation other than the deferral of recognition of income until the later of
exercise or disposition of such option.

          (l) The Company has not engaged in any "listed transaction" for
purposes of Treasury Regulation sections 1.6011-4(b)(2) or 301.6111-2(b)(2) or
any analogous provision of state or local law.

     2.10. Assets. The Company is the true and lawful owner, and has good title
to, all of the assets (tangible or intangible) purported to be owned by the
Company, free and clear of all Security Interests. The Company owns or leases
all tangible assets sufficient for the conduct of its businesses as presently
conducted. Each such tangible asset is free from material defects, is in good
operating condition and repair (subject to normal wear and tear) and is suitable
for the purposes for which it presently is used. In addition, each such tangible
asset that is owned by the Company has been maintained in accordance with

                                      -8-

<PAGE>

normal industry practice or each such tangible asset that is leased by the
Company has been maintained in accordance with the applicable lease.

     2.11. Real Property. The Company does not own, and has never owned, any
real property.

     2.12. Real Property Leases. Section 2.12 of the Disclosure Schedule lists
all Leases and lists the term of each such Lease, any extension and expansion
options, and the rent payable thereunder. The Company has delivered to the Buyer
complete and accurate copies of the Leases. With respect to each Lease:

          (a) such Lease is legal, valid, binding, enforceable and in full force
and effect;

          (b) such Lease will continue to be legal, valid, binding, enforceable
and in full force and effect immediately following the Closing in accordance
with the terms thereof as in effect immediately prior to the Closing;

          (c) neither the Company nor, to the knowledge of the Company, any
other Person, is in material breach or violation of, or default under, any such
Lease, and no event has occurred, is pending or, to the knowledge of the
Company, is threatened, that, after the giving of notice, with lapse of time, or
otherwise, would constitute a material breach or default by the Company or, to
the knowledge of the Company, any other Person under such Lease;

          (d) there are no disputes, oral agreements or forbearance programs in
effect as to such Lease;

          (e) the Company has not assigned, transferred, conveyed, mortgaged,
deeded in trust or encumbered any interest in the leasehold or subleasehold;

          (f) to the knowledge of the Company, all facilities leased or
subleased thereunder are supplied with utilities and other services adequate for
the operation of said facilities;

          (g) the Company is not aware of any Security Interest, easement,
covenant or other restriction applicable to the real property subject to such
Lease that would reasonably be expected to materially impair the current uses or
the occupancy by the Company of the property subject thereto; and

          (h) the Company has obtained a non-disturbance agreement from each
holder of a superior Security Interest and ground lease in connection with such
Lease (each of which is listed in Section 2.12(h) of the Disclosure Schedule);
and the representations and warranties set forth in clauses (a) through (d) of
this Section 2.12 with respect to Leases are true and correct with respect to
each such non-disturbance agreement.

     2.13. Intellectual Property.

          (a) Section 2.13(a) of the Disclosure Schedule lists (i) each patent,
patent application, copyright registration or application therefor, mask work
registration or application therefor, and trademark, service mark and domain
name registration or application therefor of the Company and (ii) each Customer
Deliverable of the Company

          (b) The Company owns or has the right to use all Intellectual Property
necessary (i) to use, manufacture, have manufactured, market and distribute the
Customer Deliverables and (ii) to operate the Internal Systems. Each item of
Company Intellectual Property will be owned or available for use by the Buyer
immediately following the Closing on substantially identical terms and
conditions as it

                                      -9-

<PAGE>

was immediately prior to the Closing. The Company has taken reasonable measures
to protect the proprietary nature of each item of Company Intellectual Property,
and to maintain in confidence all trade secrets and confidential information,
that it owns or uses. No other Person has any rights to any of the Company
Intellectual Property owned by the Company (except pursuant to agreements or
licenses specified in Section 2.13(d) of the Disclosure Schedule), and, to the
knowledge of the Company, no other Person is infringing, violating or
misappropriating any of the Company Intellectual Property.

          (c) None of the Customer Deliverables, or the marketing, distribution,
provision or use thereof, infringes or violates, or constitutes a
misappropriation of, any Intellectual Property rights of any Person. None of the
Internal Systems owned by the Company, or the use thereof, infringes or
violates, or constitutes a misappropriation of, any Intellectual Property rights
of any Person, except that no warranty is made with respect to Intellectual
Property of any third party which the Company has a right to use. Section
2.13(c) of the Disclosure Schedule lists each written complaint, claim or
notice, or written threat thereof, received by the Company within the past three
years, and to the knowledge of the Company each oral complaint received within
the past twelve months, alleging any such infringement, violation or
misappropriation; and the Company has provided to the Buyer complete and
accurate copies of all written documentation in the possession of the Company
relating to each such complaint, claim, notice or threat. The Company has
provided to the Buyer complete and accurate copies of all written documentation
in the Company's possession relating to claims or disputes known to the Company
concerning any Company Intellectual Property.

          (d) Section 2.13(d) of the Disclosure Schedule identifies each license
or other agreement, other than standard form agreements with the Company's
customers, pursuant to which the Company has licensed, distributed or otherwise
granted any rights to any Person with respect to, any Company Intellectual
Property. Except as described in Section 2.13(d) of the Disclosure Schedule and
warranties and indemnifications made in the Ordinary Course of Business under
the Company's standard terms and conditions of sale, or pursuant to Section
2-312 of the UCC and other applicable law, the Company has not agreed to
indemnify any Person against any infringement, violation or misappropriation of
any Intellectual Property rights with respect to any Customer Deliverables.

          (e) Section 2.13(e) of the Disclosure Schedule identifies each item of
Company Intellectual Property that is owned by any Person other than the
Company, and the license or agreement pursuant to which the Company uses it
(excluding off-the-shelf or mass-market software programs licensed by the
Company pursuant to "shrink wrap" or "click-through" licenses).

          (f) Section 2.13(f) of the Disclosure Schedule lists all Open Source
Materials that the Company has used in any way and describes the manner in which
such Open Source Materials have been used by the Company, including whether and
how the Open Source Materials have been modified or distributed by the Company.
Except as set forth in the Disclosure Schedule, the Company has not (i)
incorporated any Open Source Materials into, or combined Open Source Materials
with, any Customer Deliverables, (ii) distributed Open Source Materials in
connection with any Customer Deliverables, or (iii) used Open Source Materials
that (with respect to either clause (i), (ii) or (iii) above) (A) create, or
purport to create, obligations for the Company with respect to software
developed or distributed by the Company or (B) grant, or purport to grant, to
any Person any rights or immunities under intellectual property rights. Without
limiting the generality of the foregoing, the Company has not used any Open
Source Materials that require, as a condition of use, modification and/or
distribution of such Open Source Materials, that other software incorporated
into, derived from or distributed with such Open Source Materials be (1)
disclosed or distributed in source code form, (2) licensed for the purpose of
making derivative works, or (3) redistributable at no charge.

                                      -10-

<PAGE>

          (g) The Company has not disclosed the source code for the Software or
other confidential information constituting, embodied in or pertaining to the
Software to any Person, except pursuant to the agreements listed in Section
2.13(g) of the Disclosure Schedule, and the Company has taken reasonable
measures to prevent disclosure of such source code.

          (h) All of the copyrightable materials (including Software)
incorporated in or bundled with the Customer Deliverables have been licensed to
the Company or created by employees of the Company within the scope of their
employment by the Company or by independent contractors of the Company who have
executed enforceable agreements expressly assigning all right, title and
interest in such copyrightable materials and the copyrights therein to the
Company. No portion of such copyrightable materials was jointly developed by the
Company with any third party.

          (i) To the knowledge of the Company, the Customer Deliverables and the
Internal Systems are free from significant defects or programming errors and
conform in all material respects to the written documentation and specifications
therefor.

     2.14. Inventory. All inventory of the Company, whether or not reflected on
the Most Recent Balance Sheet, consists of a quality and quantity usable and
saleable in the Ordinary Course of Business, except for obsolete items and items
of below-standard quality. The Company has written-off or written-down to net
realizable value on the Most Recent Balance Sheet or established adequate
reserves or allowances for all obsolete items and items of below standard
quality. All inventories not written-off have been priced at the lower of cost
or market on a first-in, first-out basis. The quantities of each type of
inventory, whether raw materials, work-in-process or finished goods, are not
excessive in the present circumstances of the Company.

     2.15. Contracts.

          (a) Section 2.15 of the Disclosure Schedule lists the following
agreements (written or oral) to which the Company is a party as of the date of
this Agreement, except to the extent the Company has no continuing or contingent
rights or obligations under any such agreement as the result of the termination
or expiration of such agreement:

               (i) any agreement (or group of related agreements) for the lease
of personal property from or to third parties providing for lease payments in
excess of $10,000 per annum or having a remaining term longer than 12 months;

               (ii) any agreement (or group of related agreements) for the
purchase or sale of products or for the furnishing or receipt of services (A)
that calls for performance over a period of more than one year, (B) that
involves more than the sum of $50,000, or (C) in which the Company has granted
manufacturing rights, "most favored nation" pricing provisions or marketing or
distribution rights relating to any Customer Deliverables or territory or has
agreed to purchase a minimum quantity of goods or services or has agreed to
purchase goods or services exclusively from a certain Person;

               (iii) any agreement concerning the establishment or operation of
a partnership, joint venture or limited liability company, except for any such
agreement with the Buyer;

               (iv) any agreement (or group of related agreements) under which
it has created, incurred, assumed or guaranteed (or may create, incur, assume or
guarantee) indebtedness (including capitalized lease obligations) involving more
than $25,000 or under which it has imposed (or may impose) a Security Interest
on any of its assets, tangible or intangible;

                                      -11-

<PAGE>

               (v) any agreement for the disposition of any significant portion
of the assets or business of the Company (other than sales of Customer
Deliverables in the Ordinary Course of Business) or any agreement for the
acquisition of the assets or business of any other entity (other than purchases
of inventory or components in the Ordinary Course of Business);

               (vi) any agreement concerning confidentiality or noncompetition;

               (vii) any employment or consulting agreement;

               (viii) any agreement involving (A) the Primary Shareholder or any
Affiliate of the Primary Shareholder or (B) any current or former officer,
director or shareholder of the Company or an Affiliate thereof;

               (ix) any agreement that contains any provisions requiring the
Company to indemnify any other Person (excluding indemnities contained in
agreements for the purchase, sale or license of products entered into in the
Ordinary Course of Business); and

               (x) any other agreement (or group of related agreements) either
involving more than $50,000 or not entered into in the Ordinary Course of
Business.

          (b) The Company has delivered to the Buyer a complete and accurate
copy of each agreement listed in Section 2.13 or 2.15 of the Disclosure
Schedule. With respect to each agreement so listed: (i) the agreement is legal,
valid, binding and enforceable and in full force and effect; (ii) the agreement
will continue to be legal, valid, binding and enforceable and in full force and
effect immediately following the Closing in accordance with the terms thereof as
in effect immediately prior to the Closing; and (iii) neither the Company nor,
to the knowledge of the Company, any other Person, is in breach or violation of,
or default under, any such agreement, and no event has occurred, is pending or,
to the knowledge of the Company, is threatened, that, after the giving of
notice, with lapse of time, or otherwise, would constitute a breach or default
by the Company or, to the knowledge of the Company, any Person under such
agreement.

     2.16. Accounts Receivable. All accounts receivable of the Company reflected
on the Most Recent Balance Sheet and all accounts receivable of the Company that
have arisen since the Most Recent Balance Sheet Date (in each case other than
those subsequently paid), are valid receivables subject to no setoffs or
counterclaims and are current, net of a reserve for bad debts in an amount
proportionate to the reserve shown on the Most Recent Balance Sheet, which
reserve was calculated in accordance with generally accepted accounting
principles consistently applied. The Company has not received any written notice
from an account debtor stating that any account receivable in an amount in
excess of $10,000 is subject to any contest, claim or setoff by such account
debtor.

     2.17. Powers of Attorney. There are no outstanding powers of attorney
executed on behalf of the Company.

     2.18. Insurance. Section 2.18 of the Disclosure Schedule lists each
insurance policy (including fire, theft, casualty, comprehensive general
liability, workers compensation, business interruption, environmental, product
liability and automobile insurance policies and bond and surety arrangements) to
which the Company is a party, all of which are in full force and effect. There
is no material claim pending under any such policy as to which coverage has been
questioned, denied or disputed by the underwriter of such policy. All premiums
due and payable under all such policies have been paid, and, the knowledge of
the Company, the Company is not liable for retroactive premiums or similar
payments and is otherwise in compliance in all material respects with its
obligations under such policies. The

                                      -12-

<PAGE>

Company has no knowledge of any threatened termination of, or premium increase
with respect to, any such policy.

     2.19. Litigation. There is no Legal Proceeding that is pending or has been
threatened in writing against the Company that (a) seeks either damages in
excess of $10,000 or equitable relief or (b) in any manner challenges or seeks
to prevent, enjoin, alter or delay the transactions contemplated by this
Agreement. There are no judgments, orders or decrees outstanding against the
Company.

     2.20. Warranties. No product or service manufactured, sold, leased,
licensed or delivered by the Company is subject to any guaranty, warranty, right
of return, right of credit or other indemnity other than (i) the applicable
standard terms and conditions of sale or lease of the Company, which are set
forth in Section 2.13(d) of the Disclosure Schedule, and (ii) manufacturers'
warranties for which the Company has no liability. Section 2.20 of the
Disclosure Schedule sets forth the aggregate expenses incurred by the Company in
fulfilling its obligations under its guaranty, warranty, right of return and
indemnity provisions during each of the fiscal years and the interim period
covered by the Financial Statements.

     2.21. Employees.

          (a) Section 2.21 of the Disclosure Schedule contains a list of all
employees of the Company whose annual compensation (including base salary and
bonus) exceeded $75,000 in the twelve-month period ending February 17, 2006 or
whose base salary currently exceeds $75,000 per year, along with the position
and the current annual rate of compensation (including any unpaid bonuses that
the Company is obligated to pay) of each such person. Each current or past
employee of the Company has entered into a confidentiality and assignment of
inventions agreement with the Company, a copy of which has previously been
delivered to the Buyer. Section 2.21 of the Disclosure Schedule contains a list
of all employees of the Company who are parties to a non-competition agreement
with the Company; copies of such agreements have previously been delivered to
the Buyer. All of the agreements referenced in the two preceding sentences will
continue to be legal, valid, binding and enforceable and in full force and
effect immediately following the Closing in accordance with the terms thereof as
in effect immediately prior to the Closing. Section 2.21 of the Disclosure
Schedule contains a list of all employees of the Company who are employed
pursuant to temporary work authorizations, and such list identifies those
employees who will continue to be employees of the Company after the Closing and
those whose employment will terminate as of the Closing Date. To the knowledge
of the Company, no key employee or group of employees has any plans to terminate
employment with the Company.

          (b) The Company is not a party to or bound by any collective
bargaining agreement, nor has the Company experienced any strikes, grievances,
claims of unfair labor practices or other collective bargaining or labor
disputes. The Company has no knowledge of any organizational effort made or
threatened, either currently or within the past two years, by or on behalf of
any labor union or organization with respect to employees of the Company.

          (c) There are no significant or material disputes between the Company
and any of the employees listed in Section 2.21 of the Disclosure Schedule.
During the past two years, there have not been, nor are there currently, any
claims or proceedings relating to the alleged violation of any legal requirement
pertaining to labor relations or employee matters, including any charge or
complaint filed by any employee or union with the National Labor Relations
Board, the Equal Employment Opportunity Commission, or any comparable federal or
state governmental agency or entity, and the Company is unaware of any facts or
circumstances that could reasonably be expected to give rise to such a claim or
proceeding. The Company has complied in all respects with any and all applicable
laws relating to employment, including laws relating to equal employment
opportunity, nondiscrimination, immigration, payment of wages, benefits,
collective bargaining, the payment of social security and similar taxes,
occupational safety and health and plant closing or mass layoff requirements.

                                      -13-

<PAGE>

     2.22. Employee Benefits.

          (a) Section 2.22(a) of the Disclosure Schedule contains a complete and
accurate list of all Company Plans of the Company. Complete and accurate copies
of (i) all Company Plans of the Company that have been reduced to writing, (ii)
written summaries of all unwritten Company Plans of the Company, (iii) all
related trust agreements, insurance contracts and summary plan descriptions, if
any, and (iv) for each Company Plan of the Company with respect to which a Form
5500 series annual report is required to be filed, copies of such Form 5500, for
the last three plan years together with schedules and exits have been delivered
to the Buyer.

          (b) Each Company Plan has been administered in all material respects
in accordance with its terms and the Company has in all material respects met
its obligations with respect to each Company Plan and has made all required
contributions thereto. The Company and each Company Plan are in compliance in
all material respects with the currently applicable provisions of ERISA and the
Code and the regulations thereunder (including Section 4980B of the Code,
Subtitle K, Chapter 100 of the Code and Sections 601 through 608 and Section 701
et seq. of ERISA). All filings and reports as to each Company Plan required to
have been submitted to the Internal Revenue Service or to the United States
Department of Labor have been duly submitted. No Company Plan has assets that
include securities issued by the Company or any ERISA Affiliate.

          (c) There are no Legal Proceedings (except claims for benefits payable
in the normal operation of the Company Plans and proceedings with respect to
qualified domestic relations orders) against or involving any Company Plan or
asserting any rights or claims to benefits under any Company Plan that could
give rise to any material liability.

          (d) All the Company Plans that are intended to be qualified under
Section 401(a) of the Code have received determination letters from the Internal
Revenue Service to the effect that such Company Plans are qualified and the
plans and the trusts related thereto are exempt from federal income taxes under
Sections 401(a) and 501(a), respectively, of the Code, no such determination
letter has been revoked and revocation has not been threatened. Except as
required by law, no such Company Plan has been amended since the date of its
most recent determination letter or application therefor in any respect, and no
act or omission has occurred, that would adversely affect its qualification or
materially increase its cost. Each Company Plan that is required to satisfy
Section 401(k)(3) or 401(m)(2) of the Code has been tested for compliance with,
and satisfies the requirements of Sections 401(k)(3) and 401(m)(2) of the Code
for each plan year ending prior to the Closing Date.

          (e) Neither the Company, nor any ERISA Affiliate has ever maintained
an Employee Benefit Plan subject to Section 412 of the Code or Title IV of
ERISA.

          (f) At no time has the Company or any ERISA Affiliate been obligated
to contribute to any "multiemployer plan" (as defined in Section 4001(a)(3) of
ERISA).

          (g) There are no unfunded obligations under any Company Plan providing
benefits after termination of employment to any employee of the Company (or to
any beneficiary of any such employee), including retiree health coverage and
deferred compensation, but excluding obligations required pursuant to applicable
law including continuation of health coverage required to be continued under
Section 4980B of the Code or other applicable law and insurance conversion
privileges under state law. The assets of each Company Plan that is funded are
reported at their fair market value on the books and records of such Company
Plan.

          (h) No act or omission has occurred and no condition exists with
respect to any Company Plan that would subject the Company or any ERISA
Affiliate to (i) any material fine, penalty,

                                      -14-

<PAGE>

tax or liability of any kind imposed under ERISA or the Code or (ii) any
contractual indemnification or contribution obligation protecting any fiduciary,
insurer or service provider with respect to any Company Plan.

          (i) No Company Plan is funded by, associated with or related to a
"voluntary employee's beneficiary association" within the meaning of Section
501(c)(9) of the Code.

          (j) Except for individual employment agreements set forth in Section
2.15(a)(vii) of the Disclosure Schedule, each Company Plan is amendable and
terminable unilaterally by the Company at any time without liability or expense
to the Company or such Company Plan as a result thereof (other than for benefits
accrued through the date of termination or amendment and reasonable
administrative expenses related thereto) and no Company Plan, plan documentation
or agreement, summary plan description or other written communication
distributed generally to employees by its terms prohibits the Company from
amending or terminating any such Company Plan.

          (k) Section 2.22(k) of the Disclosure Schedule discloses each: (i)
agreement with any shareholder, director, executive officer or other key
employee of the Company (A) the benefits of which are contingent, or the terms
of which are altered, upon the occurrence of a transaction involving the Company
of the nature of any of the transactions contemplated by this Agreement, (B)
providing any term of employment or compensation guarantee or (C) providing
severance benefits or other benefits after the termination of employment of such
director, executive officer or key employee; (ii) agreement, plan or arrangement
under which any Person may receive payments from the Company that may be subject
to the tax imposed by Section 4999 of the Code or included in the determination
of such Person's "parachute payment" under Section 280G of the Code; and (iii)
agreement or plan binding the Company, including any stock option plan, stock
appreciation right plan, restricted stock plan, stock purchase plan, severance
benefit plan or Company Plan, any of the benefits of which will be increased, or
the vesting of the benefits of which will be accelerated, by the occurrence of
any of the transactions contemplated by this Agreement or the value of any of
the benefits of which will be calculated on the basis of any of the transactions
contemplated by this Agreement.

          (l) Section 2.22(l) of the Disclosure Schedule sets forth the policy
of the Company with respect to accrued vacation, accrued sick time and earned
time off and the amount of such liabilities as of the Most Recent Balance Sheet
Date.

     2.23. Environmental Matters.

          (a) The Company has complied with all applicable Environmental Laws in
all material respects. There is no pending or, to the knowledge of the Company,
threatened civil or criminal litigation, written notice of violation, formal
administrative proceeding, or investigation, inquiry or information request by
any Governmental Entity, relating to any Environmental Law involving the
Company.

          (b) The Company has no material liabilities or obligations arising
from the release of any Materials of Environmental Concern into the environment.

          (c) The Company is not a party to or bound by any court order,
administrative order, consent order or other agreement between the Company and
any Governmental Entity entered into in connection with any legal obligation or
liability arising under any Environmental Law.

          (d) Set forth in Section 2.23(d) of the Disclosure Schedule is a list
of all documents (whether in hard copy or electronic form) that contain any
environmental reports, investigations and audits relating to premises currently
or previously owned or operated by the Company (whether

                                      -15-

<PAGE>

conducted by or on behalf of the Company or a third party, and whether done at
the initiative of the Company or directed by a Governmental Entity or other
third party) that the Company has possession of or access to. A complete and
accurate copy of each such document has been provided to the Buyer.

          (e) The Company is not aware of any material environmental liability
of any solid or hazardous waste transporter or treatment, storage or disposal
facility that has been used by the Company.

     2.24. Legal Compliance. Except as explicitly set forth on the Disclosure
Schedule as an exception to a representation or warranty contained in this
Agreement, the Company is currently conducting, and has at all times since
inception conducted, its businesses in compliance with each law applicable to
the Company or its business (including rules and regulations thereunder) of any
federal, state, local or foreign government, or any Governmental Entity, except
for any violations or defaults that, individually or in the aggregate, have not
had and would not reasonably be expected to have a Company Material Adverse
Effect. The Company has not received any written notice or communication from
any Governmental Entity alleging noncompliance with any applicable law, rule or
regulation.

     2.25. Customers and Suppliers. Section 2.25 of the Disclosure Schedule sets
forth a list of (a) each customer that accounted for more than 1% of the
revenues of the Company during the last full fiscal year or for the interim
period through the Most Recent Balance Sheet Date and the approximate amount of
the revenues derived from such customer during each such period and (b) each
supplier that is the sole supplier of any significant product or service to the
Company. To the Company's knowledge, no such customer or supplier has indicated
within the past year that it will terminate substantially all of its business
with the Company. As of the Closing Date, no unfilled customer orders or
commitments (other than orders issued pursuant to the "Purchase Agreement"
identified in Section 2.4 of the Disclosure Schedule) obligating the Company to
process, manufacture, or deliver products or perform services will result, upon
completion of performance, in a gross margin of less than 15% when calculated on
a system-by-system basis, except to the extent that such deficits do not exceed,
in the aggregate, $500,000. For purposes of the preceding sentence, "gross
margin" shall be determined in a manner consistent with the unaudited statements
of income listed in clauses (b) and (c) of the definition of the Financial
Statements, including allocated manufacturing overhead at standard rates as of
the Closing Date.

     2.26. Permits. Section 2.26 of the Disclosure Schedule sets forth a list of
all material Permits issued to or held by the Company. Such listed Permits are
the only Permits that are required for the Company to conduct its business as
presently conducted or as proposed to be conducted. Each such Permit is in full
force and effect; the Company is in material compliance with the terms of each
such Permit; and, to the knowledge of the Company, no suspension or cancellation
of such Permit is threatened and there is no basis for believing that such
Permit will not be renewable upon expiration. Each such Permit will continue in
full force and effect immediately following the Closing.

     2.27. Certain Business Relationships With Affiliates. No Affiliate of the
Company (a) owns any property or right, tangible or intangible that is used in
the business of the Company, (b) has any claim or cause of action against the
Company, or (c) owes any money to, or is owed any money by, the Company. Section
2.27 of the Disclosure Schedule describes any commercial transactions or
relationships between the Company and any Affiliate thereof that have occurred
or existed since the beginning of the time period covered by the Financial
Statements.

     2.28. Brokers' Fees. The Company has no liability or obligation to pay any
fees or commissions to any broker, finder or agent with respect to the
transactions contemplated by this Agreement.

     2.29. Books and Records. The minute books and other similar records of the
Company contain complete and accurate records of all actions taken at any
meetings of the Company's shareholders, Board

                                      -16-

<PAGE>

of Directors or any committee thereof and of all written consents executed in
lieu of the holding of any such meeting. The books and records have been
maintained in accordance with good business and bookkeeping practices. Section
2.29 of the Disclosure Schedule contains a list of all bank accounts and safe
deposit boxes of the Company and the names of persons having signature authority
with respect thereto or access thereto.

     2.30. Disclosure. No representation or warranty by the Company contained in
this Agreement, contains any untrue statement of material fact or omits or will
omit to state any material fact necessary, in light of the circumstances under
which it was or will be made, in order to make the statements herein or therein
not misleading.

                                   ARTICLE III
                   REPRESENTATIONS AND WARRANTIES OF THE BUYER
                          AND THE TRANSITORY SUBSIDIARY

     Each of the Buyer and the Transitory Subsidiary represents and warrants to
the Company that the statements contained in this Article III are true and
correct as of the date of this Agreement and will be true and correct as of the
Closing as though made as of the Closing.

     3.1. Organization and Corporate Power. Each of the Buyer and the Transitory
Subsidiary is a corporation duly organized, validly existing and in good
standing under the laws of the state of its incorporation. The Buyer has all
requisite corporate power and authority to carry on the businesses in which it
is engaged and to own and use the properties owned and used by it.

     3.2. Authorization of Transaction. Each of the Buyer and the Transitory
Subsidiary has all requisite power and authority to execute and deliver this
Agreement and to perform its obligations hereunder. The execution and delivery
by the Buyer and the Transitory Subsidiary of this Agreement and the
consummation by the Buyer and the Transitory Subsidiary of the transactions
contemplated hereby have been duly and validly authorized by all necessary
corporate action on the part of the Buyer and Transitory Subsidiary,
respectively. This Agreement has been duly and validly executed and delivered by
the Buyer and the Transitory Subsidiary and constitutes a valid and binding
obligation of the Buyer and the Transitory Subsidiary, enforceable against them
in accordance with its terms.

     3.3. Noncontravention. Subject to the filing of the Articles of Merger as
required by the Oregon Business Corporation Act, neither the execution and
delivery by the Buyer or the Transitory Subsidiary of this Agreement, nor the
consummation by the Buyer of the transactions contemplated hereby, will (a)
conflict with or violate any provision of the charter or by-laws of the Buyer or
the Transitory Subsidiary, (b) require on the part of the Buyer or the
Transitory Subsidiary any filing with, or permit, authorization, consent or
approval of, any Governmental Entity, (c) conflict with, result in breach of,
constitute (with or without due notice or lapse of time or both) a default
under, result in the acceleration of obligations under, create in any Person any
right to terminate, modify or cancel, or require any notice, consent or waiver
under, any contract or instrument to which the Buyer or the Transitory
Subsidiary is a party or by which either is bound or to which any of their
assets are subject, or (d) violate any order, writ, injunction, decree, statute,
rule or regulation applicable to the Buyer or the Transitory Subsidiary or any
of their properties or assets.

                                   ARTICLE IV
                                    COVENANTS

     4.1. Closing Efforts. Each of the Parties shall use its Reasonable Best
Efforts to take all actions and to do all things necessary, proper or advisable
to consummate the transactions contemplated by this Agreement, including using
its Reasonable Best Efforts to ensure that (i) its representations and

                                      -17-

<PAGE>

warranties remain true and correct in all material respects through the Closing
Date and (ii) the conditions to the obligations of the other Parties to
consummate the Merger are satisfied.

     4.2. Governmental and Third-Party Notices and Consents. From the date of
this Agreement through the Closing:

          (a) Each Party shall use its Reasonable Best Efforts to obtain, at its
expense, all waivers, permits, consents, approvals or other authorizations from
Governmental Entities, and to effect all registrations, filings and notices with
or to Governmental Entities, as may be required for such Party to consummate the
transactions contemplated by this Agreement and to otherwise comply with all
applicable laws and regulations in connection with the consummation of the
transactions contemplated by this Agreement.

          (b) The Company shall use its Reasonable Best Efforts to obtain, at
its expense, all such waivers, consents or approvals from third parties, and to
give all such notices to third parties, as are required to be listed in the
Disclosure Schedule.

          (c)  (i) The Parties have determined that no pre-merger filing is
required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

               (ii) In the event that (A) any United States Governmental Entity
shall undertake any formal or informal inquiry or investigation, or any
litigation or administrative proceeding, in each case in regard to the
transactions contemplated or undertaken pursuant to this Agreement or (B) any
other third party shall assert a claim under any Antitrust Laws to restrict,
prevent or prohibit the consummation of the transactions contemplated by this
Agreement or otherwise challenging under any Antitrust Laws the transactions
consummated under this Agreement (any activities under clauses (A) and (B),
collectively, an "Action"), the Buyer shall (I) be responsible for responding to
such Action, whether undertaken prior to or after the Closing, (II) keep the
Primary Shareholder (and the Company prior to the Closing) reasonably informed
as to the status and progress of such Action and the strategy of the Buyer with
respect to such Action, (III) engage counsel ("Antitrust Counsel"), who may be
counsel to the Buyer, at the Buyer's cost to represent and defend the Buyer and
the Primary Shareholder (and the Company prior to the Closing) jointly in
connection with such Action (to the extent joint representation is ethically
permissible), including negotiations relating to such Action, with Antitrust
Counsel being under the control and direction of the Buyer, and (IV) bear all
costs and expenses, including legal fees, of the Buyer and the Primary
Shareholder (and the Company prior to the Closing) incurred in connection with
such joint representation and defense, other than (1) costs or expenses related
to the production of documents of the Primary Shareholder (and the Company prior
to the Closing) and the provision of any other Support, which shall be borne by
the Primary Shareholder (or the Company prior to the Closing), and (2) costs or
expenses, including legal fees, incurred by the Primary Shareholder (or the
Company prior to the Closing) in connection with the representation and defense
of an Action in which separate counsel has been engaged. The Buyer, the Primary
Shareholder and the Company hereby agree to joint representation by Antitrust
Counsel in all Actions (to the extent such joint representation is ethically
permissible).

               (iii) The Buyer agrees to use its Reasonable Best Efforts to
respond to and to contest and resist any Action, and to have vacated, lifted,
reversed or overturned any decree, judgment, injunction or other order (whether
temporary, preliminary or permanent) (an "Antitrust Order"). The existence of
any Action shall not constitute a basis for terminating this Agreement, or
postponing or delaying the Closing or the consummation of the transactions
contemplated by this Agreement, unless there shall have been issued an Antitrust
Order that restricts, prevents or prohibits the Closing. Notwithstanding the
foregoing, the Primary Shareholder agrees, and shall cause each of its
respective Affiliates, to provide Support and otherwise cooperate fully with the
Buyer, to the extent reasonably requested by the Buyer, in responding to any
Action. The Parties shall cooperate in good faith and use

                                      -18-

<PAGE>

their respective Reasonable Best Efforts to assure that, in any Action, any
documents or other information that a Party is required, through discovery or
otherwise, to produce or make available or use in such Action shall be produced,
made available or used only pursuant to, and subject to, an appropriate
protective order or other appropriate restrictions or limitations with respect
to the use and disclosure solely for the purpose of such Action, and for no
other purpose.

               (iv) Subject to the following sentence, the Buyer agrees to
indemnify and hold the Primary Shareholder and the Primary Shareholder's
officers, directors and employees harmless from fines, penalties, damages and
liabilities awarded in judgment against it or its officers, directors and
employees, or agreed to by settlement entered into in compliance with this
Section 4.2(c), in any Action in which the Buyer and the Primary Shareholder are
jointly represented by Antitrust Counsel or in which separate counsel has been
engaged because joint representation is not ethically permissible. In no event,
however, shall the Buyer have an obligation to indemnify any party or hold any
party harmless (A) for any amounts incurred prior to the Closing, (B) to the
extent of any amounts incurred as a result of the conduct of the Primary
Shareholder or its Affiliates or its or their officers, directors or employees,
except to the extent the conduct is required by this Agreement or any of the
agreements contemplated by or entered into pursuant to this Agreement, or (C)
for the avoidance of doubt, for any amounts incurred in connection with any
Action in which representation and defense is conducted by separate counsel not
under the control and direction of the Buyer in breach of the provisions of
Section 4.2(c)(ii).

               (v) Notwithstanding the foregoing, the Buyer shall have the sole
right to settle, resolve or compromise any Action on such terms and conditions
as the Buyer in its sole discretion shall deem acceptable, provided that any
such settlement, resolution or compromise does not require the Primary
Shareholder (or the Company prior to the Closing) to (A) incur any cost, expense
or damages for which indemnification is not available hereunder, (B) be the
subject of any finding, judgment, or admission of any illegal act or practice
(or facts incidental to any such illegal act or practice) or (C) amend or modify
this Agreement or any of the agreements contemplated by or entered into pursuant
to this Agreement. Any settlement, resolution, or compromise of any Action that
the Buyer does not have the sole right to accept shall require the mutual
consent of the Buyer and the Primary Shareholder.

               (vi) For the avoidance of doubt, notwithstanding anything in this
Agreement to the contrary, in no event shall the Primary Shareholder be required
to repurchase any Company Shares, and the Buyer shall not, as a result of any
Action, seek to unwind or rescind the transactions consummated under this
Agreement.

          (d) The Buyer shall provide a substitute letter of credit acceptable
to Catellus Development Corporation with respect to the real property leases
with Catellus Development Corporation described in Section 2.12 of the
Disclosure Schedule.

     4.3. Operation of Business.

          (a) Except as contemplated by this Agreement (including, in connection
with paragraph (xiv) below, as set forth in the Disclosure Schedule) or with the
written consent of the Buyer, during the period from the date of this Agreement
to the Closing, the Company shall conduct its operations in the Ordinary Course
of Business and in compliance with all applicable laws and regulations and, to
the extent consistent therewith, use its Reasonable Best Efforts to preserve
intact its current business organization, keep its physical assets in good
working condition, keep available the services of its current officers and
employees and preserve its relationships with customers, suppliers and others
having business dealings with it to the end that its goodwill and ongoing
business shall not be substantially impaired. Without limiting the generality of
the foregoing, prior to the Closing, the Company shall not, without the written
consent of the Buyer:

                                      -19-

<PAGE>

               (i) issue or sell any stock or other securities of the Company or
any options, warrants or rights to acquire any such stock or other securities
(except pursuant to the conversion or exercise of Options outstanding on the
date hereof), or amend any of the terms of (including the vesting of) any
Options or restricted stock agreements, or repurchase or redeem any stock or
other securities of the Company;

               (ii) split, combine or reclassify any shares of its capital
stock; or declare, set aside or pay any dividend or other distribution (whether
in cash, stock or property or any combination thereof) in respect of its capital
stock;

               (iii) create, incur or assume any indebtedness (including
obligations in respect of capital leases, but excluding trade and similar
payables, and routine advances to customers, incurred in the Ordinary Course of
Business); assume, guarantee, endorse or otherwise become liable or responsible
(whether directly, contingently or otherwise) for the obligations of any other
Person; or make any loans, advances or capital contributions to, or investments
in, any other Person;

               (iv) enter into, adopt or amend any Employee Benefit Plan or any
employment or severance agreement or arrangement of the type described in
Section 2.22(k) or (except for normal increases in the Ordinary Course of
Business for employees who are not Affiliates) increase in any manner the
compensation or fringe benefits of, or materially modify the employment terms
of, its directors, officers or employees, generally or individually, or pay any
bonus or other benefit to its directors, officers or employees (except for
existing payment obligations listed in Section 2.22 of the Disclosure Schedule)
or hire any new officers or (except in the Ordinary Course of Business) any new
employees;

               (v) acquire, sell, lease, license or dispose of any assets or
property (including any shares or other equity interests in or securities of any
corporation, partnership, association or other business organization or division
thereof), other than purchases and sales of assets in the Ordinary Course of
Business;

               (vi) mortgage or pledge any of its property or assets or subject
any such property or assets to any Security Interest;

               (vii) discharge or satisfy any Security Interest or pay any
obligation or liability other than in the Ordinary Course of Business;

               (viii) amend its charter, by-laws or other organizational
documents;

               (ix) change its accounting methods, principles or practices,
except insofar as may be required by a generally applicable change in GAAP, or
make any new elections, or changes to any current elections, with respect to
Taxes;

               (x) enter into, amend, terminate, take or omit to take any action
that would constitute a violation of or default under, or waive any rights
under, any contract or agreement of a nature required to be listed in Section
2.12, 2.13 or 2.15 of the Disclosure Schedule;

               (xi) make or commit to make any capital expenditure in excess of
$100,000 per item or $500,000 in the aggregate, including the construction of
new facilities or the expansion of manufacturing capabilities;

               (xii) institute or settle any Legal Proceeding;

                                      -20-

<PAGE>

               (xiii) take any action or fail to take any action permitted by
this Agreement with the knowledge that such action or failure to take action
would result in (i) any of the representations and warranties of the Company set
forth in this Agreement becoming untrue or (ii) any of the conditions to the
Merger set forth in Article V not being satisfied;

               (xiv) amend, alter or modify in any material respect the terms of
any commercial transactions or relationships between the Company and any
Affiliate of the Company; or

               (xv) agree in writing or otherwise to take any of the foregoing
actions.

          (b) If the Company wishes to take an action prior to the Closing that
may not, pursuant to Section 4.3(a), be taken without the written consent of the
Buyer, the Company and the Buyer shall follow the procedures set forth below:

               (i) A Designated Representative of the Company shall provide
written notice to a Designated Representative of the Buyer that sets forth (A)
the action that it wishes to take, (B) the provision of Section 4.3(a) that such
action would contravene, and (C) the details supporting the request, including,
if appropriate, the perceived financial effect on the Company of either taking
or not taking such action, and that requests the Buyer's written consent to such
action. For purposes of this Section 4.3(b), the Designated Representatives of
the Company shall be Akira Hijikuro and Albert Shiina and the Designated
Representatives of the Buyer shall be James Gentilcore and Michael Pippins,
provided that either of such Parties may specify additional or successor
Designated Representatives by giving the other such Party notice in the manner
set forth in Section 10.7.

               (ii) Within five Business Days after receipt of a notice pursuant
to clause (i) above, a Designated Representative of the Buyer shall deliver to
the Designated Representative of the Company who provided such notice either (A)
a written consent to the requested action or (B) a written notice that the
requested action is to be discussed at the next teleconference to be held
pursuant to clause (iii) below. Any such written response may include a request
for such supplemental information as a Designated Representative of the Buyer
deems reasonably necessary and appropriate to facilitate a full and informed
discussion and decision with respect the requested action.

               (iii) At 3:00 p.m., Eastern time, on each Tuesday occurring after
the date of this Agreement and before the Closing Date (or, if any such Tuesday
is not a Business Day, then the next succeeding Business Day), the Designated
Representatives of the Company and the Buyer shall hold a teleconference at
which they discuss any pending requested action as to which the Buyer has (A)
delivered a written response pursuant to clause (ii) above and (B) received, at
least 48 hours prior to the time of such teleconference, any supplemental
information requested in accordance with the second sentence of clause (ii)
above. It is understood that no such teleconference will be required if there is
no pending requested action satisfying clauses (A) and (B) of the preceding
sentence. With respect to each requested action that is discussed at such a
teleconference, a Designated Representative of the Buyer shall deliver to a
Designated Representative of the Company, by 5:00 p.m., Eastern time, on the
first Business Day occurring after the date of such teleconference, either (y) a
written consent to the requested action or (z) a written notice that the
requested action is to be discussed pursuant to clause (iv) below.

               (iv) With respect to any requested action that is the subject of
a notice pursuant to clause (iii)(z) above, Koki Nakamura of the Company and
Edward C. Grady of the Buyer (the "Senior Executives") shall use reasonable
efforts to discuss such action within two Business Days after the delivery of
such notice. Either of the Senior Executives may designate an alternative
officer to participate in such a discussion in lieu of such Senior Executive if
such Senior Executive is not reasonably available to participate in a discussion
during such two Business Day-period or for any other

                                      -21-

<PAGE>

reason. If the Buyer does not elect to deliver a written consent to the
requested action following a discussion between the Senior Executives (or their
designees), the requested action shall not be taken by the Company and the Buyer
shall have no further obligation to consider the requested action.

The foregoing procedures have been set forth solely to facilitate a timely
review of a request by the Company for a written consent of the Buyer for
purposes of Section 4.3(a) and thereby facilitate the operation of the business
of the Company between the date of this Agreement and Closing Date. Any decision
by the Buyer with respect to such a request shall be and remain in the sole
discretion of the Buyer, and nothing contained in this Section 4.3 shall be
construed to obligate the Buyer to approve any such request. The Company may
elect to rescind such a request at any time (including following a
teleconference described in clause (iii) above) by delivering to a written
notice to such effect to a Designated Representative of the Buyer.

     4.4. Access to Information.

          (a) The Company shall permit representatives of the Buyer to have
reasonable access during normal business hours to all premises, properties,
financial, tax and accounting records (including the work papers of the
Company's independent accountants), contracts, other records and documents, and
personnel, of or pertaining to the Company. The Buyer shall provide at least 24
hours' notice of any proposed visit to the premises or properties of the
Company, and any such visit shall be conducted with a reasonable number of
personnel, for a reasonable period of time and in a manner so as not to
interfere with the normal business operations of the Company.

          (b) Within 15 days after the end of each month ending prior to the
Closing, beginning with the first month following the Most Recent Balance Sheet
Date, the Company shall furnish to the Buyer an unaudited income statement for
such month and a balance sheet as of the end of such month, prepared on a basis
consistent with the Financial Statements. Such financial statements shall
present fairly the financial condition and results of operations of the Company
as of the dates thereof and for the periods covered thereby, and shall be
consistent with the books and records of the Company.

     4.5. Notice of Breaches.

          (a) From the date of this Agreement until the Closing, the Company
shall promptly deliver to the Buyer supplemental information concerning events
or circumstances occurring subsequent to the date hereof that would render any
representation, warranty or statement in this Agreement or the Disclosure
Schedule inaccurate or incomplete at any time after the date of this Agreement
until the Closing. No such supplemental information shall be deemed to avoid or
cure any misrepresentation or breach of warranty or constitute an amendment of
any representation, warranty or statement in this Agreement or the Disclosure
Schedule; provided that if such supplemental information relates to an event or
circumstance occurring subsequent to the date hereof in the Ordinary Course of
Business (without breach of Section 4.3) and if the Buyer would have the right
to terminate this Agreement pursuant to Section 7.1(d) as a result of the
information so disclosed and it does not exercise such right prior to the
Closing, then such supplemental information shall constitute an amendment of the
representation, warranty or statement to which it relates for purposes of
Article VI.

          (b) From the date of this Agreement until the Closing, the Buyer shall
promptly deliver to the Company supplemental information concerning events or
circumstances occurring subsequent to the date hereof that would render any
representation or warranty in this Agreement inaccurate or incomplete at any
time after the date of this Agreement until the Closing. No such supplemental
information shall be deemed to avoid or cure any misrepresentation or breach of
warranty or constitute an amendment of any representation or warranty in this
Agreement; provided that if such

                                      -22-

<PAGE>

supplemental information relates to an event or circumstance occurring
subsequent to the date hereof in the Ordinary Course of Business and if the
Company would have the right to terminate this Agreement pursuant to Section
7.1(e) as a result of the information so disclosed and it does not exercise such
right prior to the Closing, then such supplemental information shall constitute
an amendment of the representation or warranty to which it relates for purposes
of Article VI.

          (c) To the extent supplemental information is provided pursuant to
paragraphs (a) and (b) of this Section 4.6 but the recipient Party does not have
a right to terminate this Agreement pursuant to Section 7.1(b) or (c) as a
result thereof, the Parties shall negotiate in good faith to agree upon an
appropriate adjustment in the Price Per Share (or other amendment of the terms
thereof) commensurate with such misrepresentation or breach of warranty. If the
Parties are able to reach an agreement, then such supplemental information shall
constitute an amendment of the representation or warranty to which it relates
for purposes of Article VI.

     4.6. Exclusivity.

          (a) The Company and the Primary Shareholder shall not, and the Company
and the Primary Shareholder shall require each of their Affiliates, officers,
directors, employees, representatives and agents not to, directly or indirectly,
(i) initiate, solicit, encourage or otherwise facilitate any inquiry, proposal,
offer or discussion with any Person (other than the Buyer) concerning any
merger, reorganization, consolidation, recapitalization, business combination,
liquidation, dissolution, share exchange, sale of stock, sale of material assets
or similar business transaction involving the Company or any division of the
Company, (ii) furnish any non-public information concerning the business,
properties or assets of the Company or any division of the Company to any Person
(other than the Buyer) or (iii) engage in discussions or negotiations with any
Person (other than the Buyer) concerning any such transaction.

          (b) The Company and the Primary Shareholder shall immediately notify
any Person with which discussions or negotiations of the nature described in
paragraph (a) above were pending that the Company and the Primary Shareholder
are terminating such discussions or negotiations. If the Company, the Primary
Shareholder or any of their Affiliates receive any inquiry, proposal or offer of
the nature described in paragraph (a) above, the Company or the Primary
Shareholder shall, within one Business Day after such receipt, notify the Buyer
of such inquiry, proposal or offer, including the identity of the other Person
and the terms of such inquiry, proposal or offer.

     4.7. Expenses. Each of the Buyer and the Transitory Subsidiary shall bear
its own costs and expenses (including legal and accounting fees and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby. The costs and expenses (including legal and accounting fees and
expenses) of the Company incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the Primary Shareholder;
provided, however, that if the Merger is not consummated, the Company shall bear
its own costs and expenses (including legal and accounting fees and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby; provided, further, that to the extent any document needs to be
translated in connection with any clearances or approvals sought under any
Antitrust Law the Party that originally generated such document shall pay all
third-party fees and expenses associated with such translation..

     4.8. Indemnification. The Buyer shall not, for a period of three years
after the Closing, take any action to alter or impair any exculpatory or
indemnification provisions now existing in the articles of incorporation or
by-laws of the Company for the benefit of any individual who served as a
director or officer of the Company at any time prior to the Closing, except for
any changes that may be required to conform with changes in applicable law and
any changes that do not affect the application of such provisions to acts or
omissions of such individuals prior to the Closing.

                                      -23-

<PAGE>

     4.9. Open Inventory. Prior to the Closing, the Primary Shareholder and the
Company shall:

          (a) deliver items of Open Inventory to the Company in Qualifying
Condition, and/or

          (b) transfer ownership of items of Open Inventory to the Primary
Shareholder in accordance with Section 4.12, such that the aggregate amount of
Open Inventory as of the Closing shall not exceed $500,000.

     4.10. Employees. The Primary Shareholder agrees to make available to the
Company the services of not more than three engineering personnel of the Primary
Shareholder, who shall be reasonably acceptable to the Buyer, for the period
from the Closing through February 28, 2007, to provide services and support,
substantially similar in scope, quality and nature as they provided to the
Company prior to the date hereof.

     4.11. Israeli Operations. Promptly following the Closing Date, the Primary
Shareholder and the Company and the Buyer shall cooperate in negotiating with
the MOU Party to amend or terminate, in a manner acceptable to the Company and
the Buyer, the provisions of the MOU. If the terms of the MOU are not amended in
a manner acceptable to the Buyer in its discretion, then (a) the Buyer shall be
responsible for all payment and other obligations of the Company under the MOU
through the first anniversary of the Notice Date (as defined below) and (b) the
Primary Shareholder shall be responsible for, and shall indemnify the Company
and the Buyer for all payment and other obligations of the Company under the MOU
remaining after such first anniversary. The Company and the Buyer shall inform
the Primary Shareholder, not later than 6 months from the date of this
Agreement, whether the Company and the Buyer desire to continue to obtain the
services of the MOU Party in connection with the Company's business in Israel
(the date Buyer provides such notice, the "Notice Date"). For the avoidance of
doubt, the Parties agree that nothing contained in this Section 4.11 shall be
construed to affect the Company's obligations under the "Participation
Agreement" identified in Section 2.4 of the Disclosure Schedule.

     4.12. Permitted Credits.

          (a) The Company and the Primary Shareholder may take such actions as
they deem reasonably appropriate to reduce the amount of Intercompany
Obligations and to minimize the amount of the ICO Credit as of the Closing Date,
including (a) transferring ownership of items of Open Inventory to the Primary
Shareholder in exchange for cancellation of the corresponding amount of the
Intercompany Obligations, (b) offsetting any receivables of the Company owed by
the Primary Shareholder or its Affiliates (whether or not then due) against
Intercompany Obligations, and (c) notwithstanding the provisions of Section 4.3,
rescheduling and managing payables owed by the Company to other vendors. The
Company and the Primary Shareholder agree that, as of the Closing Date, there
shall be no receivables of the Company owed by the Primary Shareholder or its
Affiliates.

                                    ARTICLE V
                      CONDITIONS TO CONSUMMATION OF MERGER

     5.1. Conditions to Obligations of the Buyer and the Transitory Subsidiary.
The obligation of each of the Buyer and the Transitory Subsidiary to consummate
the Merger is subject to the satisfaction (or waiver by the Buyer) of the
following additional conditions:

          (a) there shall be no Dissenting Shares as of the Effective Time;

                                      -24-

<PAGE>

          (b) the Company shall have obtained at its own expense (and shall have
provided copies thereof to the Buyer) all of the waivers, permits, consents,
approvals or other authorizations, and effected all of the registrations,
filings and notices, referred to in Section 4.2 that are required on the part of
the Company;

          (c) the representations and warranties of the Company set forth in
this Agreement shall be true and correct as of the date of this Agreement and
shall be true and correct as of the Closing as though made as of the Closing,
except to the extent that the inaccuracy of any such representation or warranty
is the result of events or circumstances occurring subsequent to the date of
this Agreement and any such inaccuracies, individually or in the aggregate,
would not have a Company Material Adverse Effect or a material adverse effect on
the ability of the Parties to consummate the transactions contemplated by this
Agreement (it being agreed that any materiality qualifications in particular
representations and warranties shall be disregarded in determining whether any
such inaccuracies would have a Company Material Adverse Effect for purposes of
this Section 5.1(c));

          (d) the Company shall have performed or complied with its agreements
and covenants required to be performed or complied with under this Agreement as
of or prior to the Closing;

          (e) no judgment, order, decree, stipulation or injunction shall be in
effect (i) preventing or prohibiting the consummation of the transactions
contemplated by this Agreement, or (ii) that would cause the transactions
contemplated by this Agreement to be rescinded following consummation;

          (f) the Company shall have delivered to the Buyer and the Transitory
Subsidiary the Company Certificate;

          (g) the Buyer shall have received copies of the resignations,
effective as of the Closing, of each director and officer of the Company (other
than any such resignations that the Buyer designates, by written notice to the
Company, as unnecessary);

          (h) the Buyer shall have received from counsel to the Company an
opinion in substantially the form attached hereto as Opinion A, addressed to the
Buyer dated as of the Closing Date;

          (i) the Buyer shall have received from counsel to the Primary
Shareholder an opinion in substantially the form attached hereto as Opinion B,
addressed to the Buyer dated as of the Closing Date;

          (j) the Buyer shall have received such other certificates and
instruments (including certificates of existence of the Company in the State of
Oregon and certificates of good standing in the various foreign jurisdictions in
which the Company is qualified, certified charter documents, certificates as to
the incumbency of officers and the adoption of authorizing resolutions) as it
shall reasonably request in connection with the Closing;

          (k) subject to the payments described in Sections 1.3(f), 1.3(g) and
1.3(h), the Company shall have received the Release Documentation referred to
Sections 1.3(f), 1.3(g) and 1.3(h);

          (l) the Adjusted Merger Consideration shall not be less than $0; and

          (m) the Joint Venture Conditions shall have been satisfied or waived
either prior to or simultaneously with the consummation of the transactions
contemplated hereby.

                                      -25-

<PAGE>

     5.2. Conditions to Obligations of the Company. The obligation of the
Company to consummate the Merger is subject to the satisfaction of the following
additional conditions:

          (a) the representations and warranties of the Buyer and the Transitory
Subsidiary set forth in this Agreement shall be true and correct as of the date
of this Agreement and shall be true and correct as of the Closing as though made
as of the Closing, except to the extent that the inaccuracy of any such
representation or warranty is the result of events or circumstances occurring
subsequent to the date of this Agreement and any such inaccuracies, individually
or in the aggregate, would not have a material adverse effect on the ability of
the Parties to consummate the transactions contemplated by this Agreement;

          (b) each of the Buyer and the Transitory Subsidiary shall have
performed or complied with its agreements and covenants required to be performed
or complied with under this Agreement as of or prior to the Closing;

          (c) no judgment, order, decree, stipulation or injunction shall be in
effect (i) preventing or prohibiting the consummation of the transactions
contemplated by this Agreement, or (ii) that would cause the transactions
contemplated by this Agreement to be rescinded following consummation;

          (d) the Buyer shall have delivered to the Company the Buyer
Certificate;

          (e) the Company shall have received from counsels to the Buyer and the
Transitory Subsidiary an opinion in substantially the form attached hereto as
Opinion C and Opinion D, addressed to the Company and dated as of the Closing
Date;

          (f) the Company shall have received such other certificates and
instruments (including certificates of good standing of the Buyer and the
Transitory Subsidiary in their jurisdiction of organization, certified charter
documents, certificates as to the incumbency of officers and the adoption of
authorizing resolutions) as it shall reasonably request in connection with the
Closing;

          (g) the Joint Venture Conditions shall have been satisfied or waived
either prior to or simultaneously with the consummation of the transactions
contemplated hereby;

          (h) the letter of credit set forth in Section 2.7 of the Disclosure
Schedule is cancelled and Yaskawa Electric America, Inc. is released from the
real property lease described in Section 2.12 of the Disclosure Schedule; and

          (i) in connection with the letter agreement identified in Section
2.7(8)(p) of the Disclosure Schedule: (a) the Primary Shareholder is released
from its obligations under such letter agreement; (b) the Primary Shareholder is
indemnified by the Buyer for all of its obligations under such letter agreement;
or (c) appropriate modifications are made to the form of the U.S. Supply
Agreement to permit the Primary Shareholder to honor its obligations under such
letter agreement.

                                   ARTICLE VI
                                 INDEMNIFICATION

     6.1. Indemnification by the Indemnifying Securityholder. The Indemnifying
Securityholder shall indemnify the Buyer in respect of, and hold it harmless
against, any and all Damages incurred or suffered by the Surviving Corporation
or the Buyer or any Affiliate thereof resulting from, relating to or
constituting:

                                      -26-

<PAGE>

          (a) any breach, as of the date of this Agreement or as of the Closing
Date, of any representation or warranty of the Company contained in this
Agreement or any other agreement or instrument furnished by the Company to the
Buyer pursuant to this Agreement;

          (b) any failure to perform any covenant or agreement of the Company
contained in this Agreement or any agreement or instrument furnished by the
Company to the Buyer pursuant to this Agreement;

          (c) any failure of any Company Shareholder to have good, valid and
marketable title to the issued and outstanding Company Shares issued in the name
of such Company Shareholder, free and clear of all Security Interests;

          (d) any claim by a shareholder or former shareholder of the Company,
or any other Person, seeking to assert, or based upon: (i) ownership or rights
to ownership of any shares of stock of the Company; (ii) any rights of a
shareholder (other than the right to receive the Merger Consideration pursuant
to this Agreement or appraisal rights under the applicable provisions of the
Oregon Business Corporation Act), including any option, preemptive rights or
rights to notice or to vote; (iii) any rights under the articles of
incorporation or by-laws of the Company; or (iv) any claim that such Person's
shares were wrongfully repurchased by the Company; or

          (e) any claim by a current or former employee of the Company relating
to any Employee Benefit Plan that is maintained, or contributed to, by any ERISA
Affiliate for the benefit of any current or former employee of the Company.

     6.2. Indemnification by the Buyer. The Buyer shall indemnify the
Indemnifying Securityholder in respect of, and hold them harmless against, any
and all Damages incurred or suffered by the Indemnifying Securityholder
resulting from, relating to or constituting:

          (a) any breach, as of the date of this Agreement or as of the Closing
Date, of any representation or warranty of the Buyer or the Transitory
Subsidiary contained in this Agreement or any other agreement or instrument
furnished by the Buyer or the Transitory Subsidiary to the Company pursuant to
this Agreement; or

          (b) any failure to perform any covenant or agreement of the Buyer or
the Transitory Subsidiary contained in this Agreement or any agreement or
instrument furnished by the Buyer or the Transitory Subsidiary to the Company
pursuant to this Agreement.

     6.3. Indemnification Claims.

          (a) An Indemnified Party shall give written notification to the
Indemnifying Party of the commencement of any Third Party Action. Such
notification shall be given within 20 days after receipt by the Indemnified
Party of notice of such Third Party Action, and shall describe in reasonable
detail (to the extent known by the Indemnified Party) the facts constituting the
basis for such Third Party Action and the amount of the claimed damages;
provided, however, that no delay or failure on the part of the Indemnified Party
in so notifying the Indemnifying Party shall relieve the Indemnifying Party of
any liability or obligation hereunder except to the extent of any damage or
liability caused by or arising out of such failure. Within 20 days after
delivery of such notification, the Indemnifying Party may, upon written notice
thereof to the Indemnified Party, assume control of the defense of such Third
Party Action with counsel reasonably satisfactory to the Indemnified Party;
provided that (i) the Indemnifying Party may only assume control of such defense
if (A) it acknowledges in writing to the Indemnified Party that any damages,
fines, costs or other liabilities that may be assessed against the Indemnified
Party in connection with such Third Party Action constitute Damages for which
the Indemnified Party shall be indemnified

                                      -27-

<PAGE>

pursuant to this Article VI and (B) the ad damnum is less than or equal to the
amount of Damages for which the Indemnifying Party is liable under this Article
VI and (ii) the Indemnifying Party may not assume control of the defense of a
Third Party Action involving criminal liability or in which equitable relief is
sought against the Indemnified Party. If the Indemnifying Party does not, or is
not permitted under the terms hereof to, so assume control of the defense of a
Third Party Action, the Indemnified Party shall control such defense. The
Non-controlling Party may participate in such defense at its own expense. The
Controlling Party shall keep the Non-controlling Party advised of the status of
such Third Party Action and the defense thereof and shall consider in good faith
recommendations made by the Non-controlling Party with respect thereto. The
Non-controlling Party shall furnish the Controlling Party with such information
as it may have with respect to such Third Party Action (including copies of any
summons, complaint or other pleading that may have been served on such Party and
any written claim, demand, invoice, billing or other document evidencing or
asserting the same) and shall otherwise cooperate with and assist the
Controlling Party in the defense of such Third Party Action. The fees and
expenses of counsel to the Indemnified Party with respect to a Third Party
Action shall be considered Damages for purposes of this Agreement if (i) the
Indemnified Party controls the defense of such Third Party Action pursuant to
the terms of this Section 6.3(a) or (ii) the Indemnifying Party assumes control
of such defense and the Indemnified Party reasonably concludes that the
Indemnifying Party and the Indemnified Party have conflicting interests or
different defenses available with respect to such Third Party Action. The
Indemnifying Party shall not agree to any settlement of, or the entry of any
judgment arising from, any Third Party Action without the prior written consent
of the Indemnified Party, which shall not be unreasonably withheld, conditioned
or delayed. The Indemnified Party shall not agree to any settlement of, or the
entry of any judgment arising from, any such Third Party Action without the
prior written consent of the Indemnifying Party, which shall not be unreasonably
withheld, conditioned or delayed.

          (b) In order to seek indemnification under this Article VI, an
Indemnified Party shall deliver a Claim Notice to the Indemnifying Party.

          (c) Within 30 days after delivery of a Claim Notice, the Indemnifying
Party shall deliver to the Indemnified Party a Response, in which the
Indemnifying Party shall: (i) agree that the Indemnified Party is entitled to
receive all of the Claimed Amount (in which case the Response shall be
accompanied by a payment by the Indemnifying Party to the Indemnified Party of
the Claimed Amount, by check or by wire transfer), (ii) agree that the
Indemnified Party is entitled to receive the Agreed Amount (in which case the
Response shall be accompanied by a payment by the Indemnifying Party to the
Indemnified Party of the Agreed Amount, by check or by wire transfer); or (iii)
dispute that the Indemnified Party is entitled to receive any of the Claimed
Amount.

          (d) During the 30-day period following the delivery of a Response that
reflects a Dispute, the Indemnifying Party and the Indemnified Party shall use
good faith efforts to resolve the Dispute. In the absence of an agreement by the
Indemnifying Party and the Indemnified Party, such Dispute shall be resolved in
a state or federal court sitting in New York in accordance with Section 10.11.

          (e) Notwithstanding the other provisions of this Section 6.3, if a
third party asserts (other than by means of a lawsuit) that an Indemnified Party
is liable to such third party for a monetary or other obligation which may
constitute or result in Damages for which such Indemnified Party may be entitled
to indemnification pursuant to this Article VI, and such Indemnified Party
reasonably determines that it has a valid business reason to fulfill such
obligation, then (i) such Indemnified Party shall be entitled to satisfy such
obligation, without prior notice to or consent from the Indemnifying Party, (ii)
such Indemnified Party may subsequently make a claim for indemnification in
accordance with the provisions of this Article VI, and (iii) such Indemnified
Party shall be reimbursed, in accordance with the provisions of this Article VI,
for any such Damages for which it is entitled to indemnification pursuant to

                                      -28-

<PAGE>

this Article VI (subject to the right of the Indemnifying Party to dispute the
Indemnified Party's entitlement to indemnification, or the amount for which it
is entitled to indemnification, under the terms of this Article VI).

     6.4. Survival of Representations and Warranties. All representations and
warranties that are covered by the indemnification agreements in Sections 6.1(a)
and 6.2(a) shall (a) survive the Closing and (b) shall expire on the date one
year following the Closing Date, except that (i) the representations and
warranties set forth in Sections 2.1, 2.2, 2.3, 2.5, 3.1 and 3.2 shall survive
the Closing without limitation and (ii) the representations and warranties set
forth in Sections 2.9, 2.22 and 2.23 shall survive until 30 days following
expiration of all statutes of limitation applicable to the matters referred to
therein. If an Indemnified Party delivers to an Indemnifying Party, before
expiration of a representation or warranty, either a Claim Notice based upon a
breach of such representation or warranty, or an Expected Claim Notice based
upon a breach of such representation or warranty, then the applicable
representation or warranty shall survive until, but only for purposes of, the
resolution of any claims arising from or related to the matter covered by such
notice. If the legal proceeding or written claim with respect to which an
Expected Claim Notice has been given is definitively withdrawn or resolved in
favor of the Indemnified Party, the Indemnified Party shall promptly so notify
the Indemnifying Party. The rights to indemnification set forth in this Article
VI shall not be affected by (i) any investigation conducted by or on behalf of
an Indemnified Party or any knowledge acquired (or capable of being acquired) by
an Indemnified Party, whether before or after the date of this Agreement or the
Closing Date (including through supplements to the Disclosure Schedule permitted
by Section 4.5), with respect to the inaccuracy or noncompliance with any
representation, warranty, covenant or obligation that is the subject of
indemnification hereunder or (ii) unless otherwise agreed in writing by the
Parties, any waiver by an Indemnified Party of any closing condition relating to
the accuracy of any representations and warranties or the performance of or
compliance with agreements and covenants.

     6.5. Limitations.

          (a) Notwithstanding anything to the contrary herein, (i) the aggregate
liability of the Indemnifying Securityholder for Damages under Section 6.1(a)
shall not exceed $9,000,000 and (ii) the Indemnifying Securityholder shall not
be liable under Section 6.1(a) unless and until the aggregate Damages for which
they or it would otherwise be liable under Section 6.1(a) exceed $325,000;
provided that the limitation set forth in this sentence shall not apply to a
claim pursuant to Section 6.1(a) relating to a breach of the representations and
warranties set forth in Section 2.2, 2.3, 2.13, 2.22 or 2.23, to a breach of the
covenants set forth in Section 4.8, to any operational compliance failure of the
Company's 401(k) plan set forth in Section 2.22(a) of the Disclosure Schedule or
to any claim for indemnity pursuant to Section 6.1(e). For purposes solely of
computing the amount of any damages that may be payable under this Article VI
(and not of determining the existence of a breach of any representation or
warranty), all representations and warranties of the Company in Article II
(other than Sections 2.7 and 2.30) shall be construed as if the term "material"
and any reference to "Company Material Adverse Effect" (and variations thereof)
were omitted from such representations and warranties.

          (b) Notwithstanding anything to the contrary herein, (i) the aggregate
liability of the Buyer for Damages under Section 6.2(a) shall not exceed
$9,000,000, and (ii) the Buyer shall not be liable under Section 6.2(a) unless
and until the aggregate Damages for which it would otherwise be liable under
Section 6.2(a) exceed $325,000, provided that the limitation set forth in this
sentence shall not apply to a claim pursuant to Section 6.2(a) relating to a
breach of the representations and warranties set forth in Section 3.1 or 3.2 and
the covenant set forth in Section 4.2(c).

          (c) Except with respect to claims based on fraud and claims for
equitable relief, after the Closing, the rights of the Indemnified Parties under
this Article VI shall be the exclusive remedy of

                                      -29-

<PAGE>

the Indemnified Parties with respect to claims resulting from or relating to any
misrepresentation, breach of warranty or failure to perform any covenant or
agreement contained in this Agreement.

          (d) The Indemnifying Securityholder shall not have any right of
contribution against the Company or the Surviving Corporation with respect to
any breach by the Company of any of its representations, warranties, covenants
or agreements.

                                   ARTICLE VII
                                   TERMINATION

     7.1. Termination of Agreement. The Parties may terminate this Agreement
prior to the Closing, as provided below:

          (a) the Parties may terminate this Agreement by mutual written
consent;

          (b) the Buyer may terminate this Agreement by written notice to the
Primary Shareholder or the Company if the Joint Venture Agreement is terminated
for any reason.

          (c) the Primary Shareholder or the Company may terminate this
Agreement by written notice to the Buyer if the Joint Venture Agreement is
terminated for any reason.

          (d) the Buyer may terminate this Agreement by giving written notice to
the Company in the event the Company is in breach of any representation,
warranty or covenant contained in this Agreement, and such breach (i)
individually or in combination with any other such breach, would cause the
conditions set forth in clauses (c) or (d) of Section 5.1 not to be satisfied
and (ii) is not cured within 20 days following delivery by the Buyer to the
Company of written notice of such breach;

          (e) the Company may terminate this Agreement by giving written notice
to the Buyer in the event the Buyer or the Transitory Subsidiary is in breach of
any representation, warranty or covenant contained in this Agreement, and such
breach (i) individually or in combination with any other such breach, would
cause the conditions set forth in clauses (a) or (b) of Section 5.2 not to be
satisfied and (ii) is not cured within 20 days following delivery by the Company
to the Buyer of written notice of such breach;

          (f) the Buyer may terminate this Agreement by giving written notice to
the Company if the Closing shall not have occurred on or before August 31, 2006
by reason of the failure of any condition precedent under Section 5.1 (unless
the failure results primarily from a breach by the Buyer or the Transitory
Subsidiary of any representation, warranty or covenant contained in this
Agreement); or

          (g) the Company may terminate this Agreement by giving written notice
to the Buyer if the Closing shall not have occurred on or before August 31, 2006
by reason of the failure of any condition precedent under Section 5.2 (unless
the failure results primarily from a breach by the Company of any
representation, warranty or covenant contained in this Agreement).

     7.2. Effect of Termination. If any Party terminates this Agreement pursuant
to Section 7.1, all obligations of the Parties hereunder shall terminate without
any liability of any Party to any other Party (except for any liability of any
Party for breaches of this Agreement prior to such termination).

                                      -30-

<PAGE>

                                  ARTICLE VIII
                             POST-CLOSING COVENANTS

     8.1. Proprietary Information. From and after the Closing, the Primary
Shareholder shall not disclose or make use of (except to pursue their rights
under this Agreement), and shall use their best efforts to cause all of their
Affiliates not to disclose or make use of, any knowledge, information or
documents of a confidential nature or not generally known to the public with
respect to the Company, the Company's business or the Buyer or its business
(including the financial information, technical information or data relating to
the Company's products and names of customers of the Company, except to the
extent that such knowledge, information or documents shall have become public
knowledge other than through improper disclosure by the Company (prior to the
Closing), the Primary Shareholders or any of its Affiliates.

     8.2. Solicitation and Hiring. For a period of two years after the Closing
Date, the Primary Shareholders shall not, either directly or indirectly
(including through an Affiliate), (a) solicit or attempt to induce any
Restricted Employee to terminate such Restricted Employee's employment with the
Company or any Affiliate of the Company or (b) hire or attempt to hire any
Restricted Employee; provided that this clause (b) shall not apply to any
individual whose employment with the Company or an Affiliate of the Company has
been terminated for a period of six months or longer.

                                   ARTICLE IX
                                   DEFINITIONS

     For purposes of this Agreement, each of the following terms shall have the
meaning set forth below.

     "Action" shall have the meaning set forth in Section 4.2(c)(ii).

     "Adjusted Merger Consideration" shall mean (A) the Base Merger
Consideration, plus (B) the amount, if any, by which the accounts receivable of
the Company due from the "Customer" identified in Section 2.4 of the Disclosure
Schedule increase from September 30, 2005 to the Closing Date, provided that
such amount shall not exceed $3,500,000, minus (C) the sum of (i) the Mizuho
Payoff Amount, (ii) the BTM Payoff Amount, (iii) the SMBC Payoff Amount, and
(iv) the ICO Credit.

     "Affiliate" shall mean any affiliate, as defined in Rule 12b-2 under the
Securities Exchange Act of 1934.

     "Agreed Amount" shall mean part, but not all, of the Claimed Amount.

     "Agreement" has the meaning set forth in the first paragraph of this
Agreement.

     "Antitrust Counsel" shall have the meaning set forth in Section 4.2(c)(ii).

     "Antitrust Laws" shall mean the antitrust laws of the United States or any
state thereof, including Sections 1 and 2 of the Sherman Act, Sections 3, 4, 7
or 7(a) of the Clayton Act, and Section 5 of the Federal Trade Commission Act.

     "Antitrust Order" shall have the meaning set forth in Section 4.2(c)(iii).

     "Articles of Merger" shall mean the certificate of merger or other
appropriate documents prepared and executed in accordance with Section 60.494 of
the Oregon Business Corporation Act.

     "Base Merger Consideration" shall equal $45,000,000.

                                      -31-

<PAGE>

     "BTM Payoff Amount" shall have the meaning set forth in Section 1.3(g).

     "Business Day" shall mean a day on which banks are open for business in
Boston, Massachusetts, Portland, Oregon, and Tokyo, Japan.

     "Buyer" shall have the meaning set forth in the first paragraph of this
Agreement.

     "Buyer Certificate" shall mean a certificate to the effect that each of the
conditions specified in clauses (a) through (c) (insofar as clause (c) relates
to Legal Proceedings involving the Buyer or the Transitory Subsidiary) of
Section 5.2 is satisfied in all respects.

     "CERCLA" shall mean the federal Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended.

     "Claim Notice" shall mean written notification which contains (i) a
description of the Damages incurred or reasonably expected to be incurred by the
Indemnified Party and the Claimed Amount of such Damages, to the extent then
known, (ii) a statement that the Indemnified Party is entitled to
indemnification under Article VI for such Damages and a reasonable explanation
of the basis therefor, and (iii) a demand for payment in the amount of such
Damages.

     "Claimed Amount" shall mean the amount of any Damages incurred or
reasonably expected to be incurred by the Indemnified Party.

     "Closing" shall mean the closing of the transactions contemplated by this
Agreement.

     "Closing Date" shall mean the date five Business Days after the
satisfaction or waiver of all of the conditions to the obligations of the
Parties to consummate the transactions contemplated hereby (excluding the
delivery at the Closing of any of the documents set forth in Article V), or such
other date as may be mutually agreeable to the Parties.

     "Code" shall mean the Internal Revenue Code of 1986, as amended.

     "Common Shares" shall mean shares of common stock, no par value per share,
of the Company.

     "Company" shall have the meaning set forth in the first paragraph of this
Agreement.

     "Company Certificate" shall mean a certificate to the effect that each of
the conditions specified in clauses (a) through (e) (insofar as clause (e)
relates to Legal Proceedings involving the Company) of Section 5.1 and clauses
(a) through (c) (insofar as clause (c) relates to Legal Proceedings involving
the Buyer) of Section 5.2 is satisfied in all respects.

     "Company Intellectual Property" shall mean the Intellectual Property owned
by or licensed to the Company and covering, incorporated in, underlying or used
in connection with the Customer Deliverables or the Internal Systems.

     "Company Material Adverse Effect" shall mean any material adverse change,
event, circumstance or development with respect to, or material adverse effect
on, (a) the business, assets, liabilities, capitalization, prospects (based on
the business of the Company as currently proposed to be conducted by the
Company), condition (financial or other), or results of operations of the
Company, or (b) the ability of the Buyer to operate the business of the Company
immediately after the Closing as operated in the twelve month period immediately
preceding the Closing; provided, however, that such material adverse change,
event, circumstance, development or effect shall exclude (i) any change, effect,
event, or development (individually or in the aggregate) generally affecting the
industry in which the

                                      -32-

<PAGE>

Company operates or attributable to conditions affecting the United States
economy as a whole and (ii) any cancellation of customer orders, reductions in
sales or disruption in supplier relationships, in each case to the extent
attributable to the public announcement or pendency of the Merger. For the
avoidance of doubt, the Parties agree that the terms "material," "materially" or
"materiality" as used in this Agreement with an initial lower case "m" shall
have their respective customary and ordinary meanings, without regard to the
meaning ascribed to Company Material Adverse Effect.

     "Company Plan" shall mean any material Employee Benefit Plan maintained, or
contributed to, by the Company or any ERISA Affiliate for the benefit of any
current or former employee of the Company with respect to which the Company
could have any liability.

     "Company Shares" shall mean the Common Shares and the Preferred Shares
together.

     "Company Stock Plan" shall mean the 2001 Stock Incentive Plan adopted by
the Company's Board of Directors and shareholders on July 20, 2001 and July 27,
2001, respectively, and as amended by the Company's Board of Directors and
shareholders on April 5, 2004 and April 9, 2004, respectively.

     "Company Shareholder" shall mean a holder of record of Common Shares
immediately prior to the Effective Time.

     "Controlling Party" shall mean the Party controlling the defense of any
Third Party Action.

     "Customer Deliverables" shall mean (a) the products that the Company (i)
currently manufactures, markets, sells or licenses, (ii) has manufactured,
marketed, sold or licensed within the previous three years or (iii) has any
obligations to manufacture, market, sell or license in the future and (b) the
services that the Company (i) currently provides, (ii) has provided within the
previous three years or (iii) currently plans to provide in the future.

     "Damages" shall mean any and all debts, obligations and other liabilities
(whether absolute, accrued, contingent, fixed or otherwise, or whether known or
unknown, or due or to become due or otherwise), diminution in value, monetary
damages, fines, fees, penalties, interest obligations, deficiencies, losses and
expenses (including amounts paid in settlement, interest, court costs, costs of
investigators, fees and expenses of attorneys, accountants, financial advisors
and other experts, and other expenses of litigation or other dispute resolution
proceedings relating to a Third Party Action or an indemnification claim under
Article VI).

     "Disclosure Schedule" shall mean the disclosure schedule provided by the
Company to the Buyer on the date hereof and accepted in writing by the Buyer.

     "Dispute" shall mean the dispute resulting if the Indemnifying Party in a
Response disputes its liability for all or part of the Claimed Amount.

     "Dissenting Shares" shall mean Company Shares held as of the Effective Time
by a Company Shareholder who has not voted such Company Shares in favor of the
adoption of this Agreement and with respect to which appraisal shall have been
duly demanded and perfected in accordance with Section 60.551 to 60.594 of the
Oregon Business Corporation Act and not effectively withdrawn or forfeited prior
to the Effective Time.

     "Effective Time" shall mean the time at which the Surviving Corporation
files the Articles of Merger with the Secretary of State of the State of Oregon.

                                      -33-

<PAGE>

     "Employee Benefit Plan" shall mean any "employee pension benefit plan" (as
defined in Section 3(2) of ERISA), any "employee welfare benefit plan" (as
defined in Section 3(1) of ERISA), and any other written or oral plan, agreement
or arrangement involving direct or indirect compensation, including insurance
coverage, severance benefits, disability benefits, deferred compensation,
bonuses, stock options, stock purchase, phantom stock, stock appreciation or
other forms of incentive compensation or post-retirement compensation.

     "Environmental Law" shall mean any federal, state or local law, statute,
rule, order, directive, judgment, Permit or regulation or the common law
relating to the environment, occupational health and safety, or exposure of
Persons or property to Materials of Environmental Concern, including any
statute, regulation, administrative decision or order pertaining to: (a) the
presence of or the treatment, storage, disposal, generation, transportation,
handling, distribution, manufacture, processing, use, import, export, labeling,
recycling, registration, investigation or remediation of Materials of
Environmental Concern or documentation related to the foregoing; (b) air, water
and noise pollution; (c) groundwater and soil contamination; (d) the release,
threatened release, or accidental release into the environment, the workplace or
other areas of Materials of Environmental Concern, including emissions,
discharges, injections, spills, escapes or dumping of Materials of Environmental
Concern; (e) transfer of interests in or control of real property that may be
contaminated; (f) community or worker right-to-know disclosures with respect to
Materials of Environmental Concern; (g) the protection of wild life, marine life
and wetlands, and endangered and threatened species; (h) storage tanks, vessels,
containers, abandoned or discarded barrels and other closed receptacles; and (i)
health and safety of employees and other individuals. As used above, the term
"release" shall have the meaning set forth in CERCLA.

     "ERISA" shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     "ERISA Affiliate" shall mean any Person that is, or at any applicable time
was, a member of (a) a controlled group of corporations (as defined in Section
414(b) of the Code), (b) a group of trades or businesses under common control
(as defined in Section 414(c) of the Code), or (c) an affiliated service group
(as defined under Section 414(m) of the Code or the regulations under Section
414(o) of the Code), any of which includes or included the Company.

     "Expected Claim Notice" shall mean a notice that, as a result of a legal
proceeding instituted by or written claim made by a third party, an Indemnified
Party reasonably expects to incur Damages for which it is entitled to
indemnification under Article VI.

     "Financial Statements" shall mean:

          (a) the audited balance sheets and statements of income, changes in
shareholders' equity and cash flows of the Company as of the end of and for each
of the fiscal years ended February 29, 2004 and February 28, 2005, and

          (b) the unaudited balance sheet and statements of income, changes in
shareholders' equity and cash flows of the Company for the fiscal year ended
February 28, 2006; and

          (c) the Most Recent Balance Sheet and the unaudited statements of
income, changes in shareholders' equity and cash flows for the one-month period
ended as of the Most Recent Balance Sheet Date.

     "GAAP" shall mean United States generally accepted accounting principles.

     "Governmental Entity" shall mean any court, arbitrational tribunal,
administrative agency or commission or other governmental or regulatory
authority or agency.

                                      -34-

<PAGE>

     "ICO Credit" shall mean the amount by which the aggregate amount of
Intercompany Obligations as of the Closing Date exceeds $3,500,000.

     "Indemnified Party" shall mean a Party entitled, or seeking to assert
rights, to indemnification under Article VI.

     "Indemnifying Party" shall mean the Party from which indemnification is
sought by the Indemnified Party.

     "Indemnifying Securityholder" shall mean Yaskawa Electric Corporation.

     "Intellectual Property" shall mean all:

          (a) patents, patent applications, patent disclosures and all related
continuation, continuation-in-part, divisional, reissue, reexamination, utility
model, certificate of invention and design patents, patent applications,
registrations and applications for registrations;

          (b) trademarks, service marks, trade dress, Internet domain names,
logos, trade names and corporate names and registrations and applications for
registration thereof;

          (c) copyrights and registrations and applications for registration
thereof;

          (d) mask works and registrations and applications for registration
thereof;

          (e) computer software, data and documentation;

          (f) inventions, trade secrets and confidential business information,
whether patentable or nonpatentable and whether or not reduced to practice,
know-how, manufacturing and product processes and techniques, research and
development information, copyrightable works, financial, marketing and business
data, pricing and cost information, business and marketing plans and customer
and supplier lists and information;

          (g) other proprietary rights relating to any of the foregoing
(including remedies against infringements thereof and rights of protection of
interest therein under the laws of all jurisdictions); and

          (h) copies and tangible embodiments thereof.

     "Intercompany Obligations" shall mean all payables, liabilities and other
obligations owed by the Company to the Primary Shareholder and its Affiliates
from time to time.

     "Internal Systems" shall mean the internal systems of the Company that are
used in its business or operations, including computer hardware systems,
software applications and embedded systems.

     "Joint Venture Agreement" shall mean the joint venture agreement, dated as
of the date hereof, between the Primary Shareholder and the Buyer

     "Joint Venture Conditions" shall mean the satisfaction of the terms and
conditions set forth in Sections 1.4, 1.5, 1.6 and 1.8 and Article IV of the
Joint Venture Agreement.

     "Lease" shall mean any lease or sublease pursuant to which the Company
leases or subleases from another Person any real property.

                                      -35-

<PAGE>

     "Legal Proceeding" shall mean any action, suit, proceeding, claim,
arbitration or investigation before any Governmental Entity or before any
arbitrator.

     "Materials of Environmental Concern" shall mean any: pollutants,
contaminants or hazardous substances (as such terms are defined under CERCLA),
pesticides (as such term is defined under the Federal Insecticide, Fungicide and
Rodenticide Act), solid wastes and hazardous wastes (as such terms are defined
under the Resource Conservation and Recovery Act), chemicals, other hazardous,
radioactive or toxic materials, oil, petroleum and petroleum products (and
fractions thereof), or any Environmental Law.

     "Merger" shall mean the merger of the Transitory Subsidiary with and into
the Company in accordance with the terms of this Agreement.

     "Mizuho Payoff Amount" shall have the meaning set forth in Section 1.3(f).

     "MOU" shall mean the "Memorandum of Understanding" identified in Section
2.7 of the Disclosure Schedule.

     "MOU Party" shall mean the entity identified as such in Section 2.7 of the
Disclosure Schedule.

     "Most Recent Balance Sheet" shall mean the unaudited balance sheet of the
Company as of the Most Recent Balance Sheet Date.

     "Most Recent Balance Sheet Date" shall mean March 31, 2006.

     "Non-controlling Party" shall mean the Party not controlling the defense of
any Third Party Action.

     "Notice Date" shall have the meaning set forth in Section 4.11.

     "Open Inventory" shall mean inventory of the Company held by the Primary
Shareholder or any of its Affiliates (other than the Company and its
subsidiaries), excluding any inventory in transit from the Primary Shareholder
to the Company as evidenced by a valid bill of lading.

     "Open Source Materials" shall mean all software or other material that is
distributed as "free software," "open source software" or under a similar
licensing or distribution model, including the GNU General Public License (GPL),
GNU Lesser General Public License (LGPL), Mozilla Public License (MPL), BSD
Licenses, the Artistic License, the Netscape Public License, the Sun Community
Source License (SCSL) the Sun Industry Standards License (SISL) and the Apache
License.

     "Option" shall mean each option to purchase or acquire Common Shares.

     "Ordinary Course of Business" shall mean the ordinary course of business
consistent with past custom and practice (including with respect to frequency
and amount).

     "Participation Agreement" shall have the meaning set forth in Section 4.11.

     "Parties" shall mean the Buyer, the Transitory Subsidiary, the Company and,
as the context requires, the Primary Shareholder.

     "Permits" shall mean all permits, licenses, registrations, certificates,
orders, approvals, franchises, variances and similar rights issued by or
obtained from any Governmental Entity (including those issued

                                      -36-

<PAGE>

or required under Environmental Laws and those relating to the occupancy or use
of owned or leased real property).

     "Person" means any corporation, limited or general partnership, limited
liability company, trust, unincorporated association, any other entity or
organization, Governmental Entity, or an individual.

     "Preferred Shares" shall mean the shares of preferred stock, no par value
per share, of the Company.

     "Price Per Share" shall mean (a) the Adjusted Merger Consideration divided
by (b) the number of Common Shares outstanding immediately prior to the Closing.

     "Primary Shareholder" shall mean Yaskawa Electric Corporation.

     "Qualifying Condition" shall mean, with respect to any inventory of the
Company, that such inventory is in saleable condition and at the current
revision level for each product.

     "Reasonable Best Efforts" shall mean best efforts, to the extent
commercially reasonable.

     "Release Documentation" shall mean any and all agreements, documents,
terminations, discharges, releases and other similar instruments, including any
and all of the foregoing as may be reasonably requested by the Buyer, evidencing
(i) the termination of all commitments and releases of all obligations under or
in connection with the Master Promissory Note, dated November 28, 2001, issued
by the Company to Mizuho Corporate Bank, Ltd., the Master Promissory Note, dated
June 15, 2001, issued by the Company to Mizuho Corporate Bank, Ltd, the
Uncommitted Loan Agreement, dated June 1, 2003, between The Bank of
Tokyo-Mitsubishi UFJ, Ltd and the Company, and the Uncommitted and Revolving
Credit Line Agreement, dated June 8, 2005, between Sumitomo Mitsui Banking
Corporation and the Company (together, the "Loan Documents") and (ii) all lien
releases and other similar discharge or release documents (and if applicable, in
recordable form) that release the security interests and all other notices of
security interests and liens previously filed or registered by Mizuho Corporate
Bank, Ltd, The Bank of Tokyo-Mitsubishi UFJ, Ltd and Sumitomo Mitsui Banking
Corporation (together, the "Lenders") with respect to the obligations under the
Loan Documents. The Company shall cause to be returned to the Buyer within 10
days any and all original notes or guarantees issued to lender by the Company
marked "Terminated" or "Paid," any and all pledged stock certificates and
related stock powers and pledged notes and related endorsements previously
delivered to the Lenders in connection with the Loan Documents.

     "Requisite Shareholder Approval" shall mean the adoption of this Agreement
and the approval of the Merger by a majority of the votes represented by the
outstanding Company Shares entitled to vote on this Agreement and the Merger.

     "Response" shall mean a written response containing the information
provided for in Section 6.3(c).

     "Restricted Employee" shall mean any individual who either (a) was an
employee of the Buyer on either the date of this Agreement or the Closing Date
or (b) was an employee of the Company on either the date of this Agreement or
the Closing Date and received an employment offer from the Buyer within five
Business Days following the Closing Date.

     "Securities Act" shall mean the Securities Act of 1933, as amended.

     "Security Interest" shall mean any mortgage, pledge, security interest,
encumbrance, charge or other lien (whether arising by contract or by operation
of law), other than (a) mechanic's, materialmen's,

                                      -37-

<PAGE>

and similar liens, (b) liens arising under worker's compensation, unemployment
insurance, social security, retirement, and similar legislation, (c) liens on
goods in transit incurred pursuant to documentary letters of credit, (d) liens
for taxes not yet due and payable that are not overdue or that are being
contested in good faith by appropriate proceedings, (e) deposits or pledges made
in connection with or to secure payment of workers' compensation, unemployment,
insurance, or similar payments mandated by applicable law, (f) lien securing
debt reflected in the Financial Statements or Most Recent Balance Sheet (g) the
rights of lessors under leases under which the Company is the lessee, and (h)
liens securing rental payments under capital lease arrangements disclosed in the
Disclosure Schedule, in each case arising in the Ordinary Course of Business of
the Company and not material to the Company.

     "SMBC Payoff Amount" shall have the meaning set forth in Section 1.3(h).

     "Software" shall mean any of the software owned by the Company.

     "Subsidiary" shall mean any corporation, partnership, trust, limited
liability company or other non-corporate business enterprise in which the
Company holds stock or other ownership interests representing (a) more than 50%
of the voting power of all outstanding stock or ownership interests of such
entity or (b) the right to receive more than 50% of the net assets of such
entity available for distribution to the holders of outstanding stock or
ownership interests upon a liquidation or dissolution of such entity.

     "Support" shall mean production of documents, furnishing of information
(whether in documentary form or otherwise), making available employees and
agents for interviews and testimony, and such other efforts as may be reasonably
necessary or advisable in order to support the representation and defense
directed by the Buyer in connection with any Action, in each case to the extent
such documents, information, interview and testimony subjects, and other matters
are not readily available to the Buyer.

     "Surviving Corporation" shall mean the Company, as the corporation
surviving the Merger.

     "Taxes" shall mean all taxes, charges, fees, levies or other similar
assessments or liabilities, including income, gross receipts, ad valorem,
premium, value-added, excise, real property, personal property, sales, use,
transfer, withholding, employment, unemployment, insurance, social security,
business license, business organization, environmental, workers compensation,
payroll, profits, license, lease, service, service use, severance, stamp,
occupation, windfall profits, customs, duties, franchise and other taxes imposed
by the United States of America or any state, local or foreign government, or
any agency thereof, or other political subdivision of the United States or any
such government, and any interest, fines, penalties, assessments or additions to
tax resulting from, attributable to or incurred in connection with any tax or
any contest or dispute thereof.

     "Tax Returns" shall mean all reports, returns, declarations, statements or
other information required to be supplied to a taxing authority in connection
with Taxes.

     "Third Party Action" shall mean any suit or proceeding by a Person other
than a Party for which indemnification may be sought by a Party under Article
VI.

     "Transitory Subsidiary" shall have the meaning set forth in the first
paragraph of this Agreement.

     "U.S. Supply Agreement" shall mean the U.S. robot supply agreement, to be
dated as of the Closing Date, between the Primary Shareholder and the Buyer in
the form attached hereto as Exhibit A with such modifications as may be agreed
upon by the parties thereto pursuant to Section 5.2(i)

                                      -38-

<PAGE>

     "Warrant" shall mean each warrant or other contractual right to purchase or
acquire Company Shares, provided that Options and Preferred Shares shall not be
considered Warrants.

                                    ARTICLE X
                                  MISCELLANEOUS

     10.1. Press Releases and Announcements. No Party, Primary Shareholder, or
Affiliate of a Party or a Primary Shareholder shall issue any press release or
public announcement relating to the subject matter of this Agreement without the
prior written approval of the other Parties; provided, however, that any Party
may make any public disclosure it believes in good faith is required by
applicable law, regulation or stock market rule, in which case the disclosing
Party shall use reasonable efforts to advise the other Parties and provide them
with a copy of the proposed disclosure prior to making the disclosure.

     10.2. No Third Party Beneficiaries. This Agreement shall not confer any
rights or remedies upon any person other than the Parties and their respective
successors and permitted assigns; provided, however, that (a) the provisions in
Article I concerning payment of the Merger Consideration are intended for the
benefit of the Indemnifying Securityholder, (b) the provisions of Article VI
concerning indemnification are intended for the benefit of and to bind on the
Indemnifying Securityholder; and (c) the provisions of Section 4.8 concerning
indemnification are intended for the benefit of the individuals specified
therein.

     10.3. Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the Parties and supersedes any
prior understandings, agreements or representations by or among the Parties,
written or oral, with respect to the subject matter hereof; provided that the
letter agreement relating to confidentiality dated June 1, 2005 between the
Buyer and the Primary Shareholder shall remain in effect in accordance with its
terms.

     10.4. Succession and Assignment. This Agreement shall be binding upon and
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign any of its rights or delegate any of
its performance obligations hereunder without the prior written approval of the
other Parties; provided that the Transitory Subsidiary may assign its rights,
interests and obligations hereunder to an Affiliate of the Buyer. Any purported
assignment of rights or delegation of performance obligations in violation of
this Section 10.4 is void.

     10.5. Counterparts and Facsimile Signature. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original but all
of which together shall constitute one and the same instrument. This Agreement
may be executed by facsimile signature.

     10.6. Headings. The section headings contained in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

     10.7. Notices. All notices, requests, demands, claims, and other
communications hereunder shall be in writing. Any notice, request, demand, claim
or other communication hereunder shall be deemed duly delivered four Business
Days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one Business Day after it is sent for next Business Day
delivery via a reputable international overnight courier service, in each case
to the intended recipient as set forth below:

                                      -39-

<PAGE>

If to the Company:                       Copy to:

Synetics Solutions Inc.                  Prior to the Closing, to the Primary
18870 NE Riverside Parkway               Shareholder (with copy to Masuda,
Portland, Oregon 97230 U.S.A.            Funai, Eifert & Mitchell, Ltd.) as set
                                         forth below

                                         Subsequent to the Closing, to the Buyer
                                         (with copy to Wilmer Cutler Pickering
                                         Hale and Dorr LLP) as set forth below

If to the Buyer or the Transitory        Copy to:
Subsidiary:

Brooks Automation, Inc.                  Wilmer Cutler Pickering Hale and Dorr
15 Elizabeth Drive                       LLP
Chelmsford, Massachusetts 01824 U.S.A.   60 State Street
Attention: Thomas S. Grilk, Esq.         Boston, Massachusetts 02109 U.S.A.
Fax: 978-262-2511                        Attention: Mark G. Borden
                                         Fax: 617-526-5000

If to the Primary Shareholder:           Copy to:

Yaskawa Electric Corporation             Masuda, Funai, Eifert & Mitchell, Ltd.
2-1 Kurosaki-shiroishi                   203 N. LaSalle Street, Suite 2500
Yahatanishi-ku                           Chicago, Illinois 60601-1262 U.S.A.
Kitakyushu 806-0004, Japan               Attention: Mary W. Shellenberg
Attention: Koki Nakamura                 Fax: 312-245-7467
Fax: +81-93-645-7918

     Any Party may give any notice, request, demand, claim or other
communication hereunder using any other means (including personal delivery,
expedited courier, messenger service, telecopy, ordinary mail or electronic
mail), but no such notice, request, demand, claim or other communication shall
be deemed to have been duly given unless and until it actually is received by
the Party for which it is intended. Any Party may change the address to which
notices, requests, demands, claims, and other communications hereunder are to be
delivered by giving the other Parties notice in the manner herein set forth.

     10.8. Governing Law. All matters arising out of or relating to this
Agreement and the transactions contemplated hereby (including its
interpretation, construction, performance and enforcement) shall be governed by
and construed in accordance with the internal laws of the State of New York
without giving effect to any choice or conflict of law provision or rule
(whether of the State of New York or any other jurisdiction) that would cause
the application of laws of any jurisdictions other than those of the State of
New York.

     10.9. Amendments and Waivers. The Parties may mutually amend any provision
of this Agreement at any time prior to or after the Closing; provided, however,
that any amendment shall be subject to any restrictions contained in the Oregon
Business Corporation Act. No amendment of any provision of this Agreement shall
be valid unless the same shall be in writing and signed by each of the Parties,
including the Primary Shareholder (but excluding the Transitory Subsidiary) with
respect to any amendment after the Closing. No waiver of any right or remedy
hereunder shall be valid unless the same shall be in writing and signed by the
Party giving such waiver. No waiver by any Party with respect to any default,
misrepresentation or breach of warranty or covenant hereunder shall be deemed to
extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue
of any prior or subsequent such occurrence.

                                      -40-

<PAGE>

     10.10. Severability. Any term or provision of this Agreement that is
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. If the final judgment of a court of
competent jurisdiction declares that any term or provision hereof is invalid or
unenforceable, the Parties agree that the court making the determination of
invalidity or unenforceability shall have the power to limit the term or
provision, to delete specific words or phrases, or to replace any invalid or
unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or
unenforceable term or provision, and this Agreement shall be enforceable as so
modified.

     10.11. Submission to Jurisdiction. Each Party (a) submits to the
jurisdiction of the United States District Court for the Southern District of
New York or any state court in New York County in the State of New York in any
action or proceeding arising out of or relating to this Agreement, (b) agrees
that all claims in respect of such action or proceeding may be heard and
determined in any such court, (c) waives any claim of inconvenient forum or
other challenge to venue in such court, (d) agrees not to bring any action or
proceeding arising out of or relating to this Agreement in any other court and
(e) waives any right it may have to a trial by jury with respect to any action
or proceeding arising out of or relating to this Agreement. Each Party agrees to
accept service of any summons, complaint or other initial pleading made in the
manner provided for the giving of notices in Section 10.7, provided that nothing
in this Section 10.11 shall affect the right of any Party to serve such summons,
complaint or other initial pleading in any other manner permitted by law.

     10.12. Construction.

          (a) The language used in this Agreement shall be deemed to be the
language chosen by the Parties to express their mutual intent, and no rule of
strict construction shall be applied against any Party.

          (b) Any reference to any federal, state, local or foreign statute or
law shall be deemed also to refer to all rules and regulations promulgated
thereunder, unless the context requires otherwise.

          (c) Any reference herein to "including" shall be interpreted as
"including without limitation."

          (d) Any reference to any Article, Section or paragraph shall be deemed
to refer to an Article, Section or paragraph of this Agreement, unless the
context clearly indicates otherwise.

                                      * * *

                                      -41-

<PAGE>

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
first above written.

                                        BROOKS AUTOMATION, INC.

                                        /s/ Edward C. Grady
                                        ----------------------------------------
                                        By: Edward C. Grady
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

                                        BRAVO ACQUISITION SUBSIDIARY, INC.

                                        /s/ Edward C. Grady
                                        ----------------------------------------
                                        By: Edward C. Grady
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

                                        SYNETICS SOLUTIONS INC.

                                        /s/ Gen Kudo
                                        ----------------------------------------
                                        By: Gen Kudo
                                            ------------------------------------
                                        Title: Chairman of the Board
                                               ---------------------------------

     The following shareholder of the Company hereby executes this Agreement for
the limited purpose of agreeing to and becoming bound by the provisions of
Sections 1.3(j), 4.2, 4.6, 4.7, 4.9, 4.10, 4.11, 4.12, 5.1, 5.2 and of Articles
VI, VII, VIII, IX and X.

                                        YASKAWA ELECTRIC CORPORATION

                                        /s/ Koji Toshima
                                        ----------------------------------------
                                        By: Koji Toshima
                                            ------------------------------------
                                        Title: President
                                               ---------------------------------

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