Document:

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                                                                    EXHIBIT 10.6

                 UNCOMMITTED AND REVOLVING CREDIT LINE AGREEMENT

         UNCOMMITTED AND REVOLVING CREDIT LINE AGREEMENT dated as of March 1,
2004 between SUMITOMO MITSUI BANKING CORPORATION, a Japanese banking corporation
having its offices at 555 California Street, Suite 3350, San Francisco, CA 94104
(the "BANK") and SYNETICS SOLUTIONS INC., a corporation organized under the
laws of Oregon, having its offices at 18870 NE Riverside Parkway, Portland, OR
97320 (the "BORROWER"). The parties hereto hereby agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

SECTION 1.01. DEFINED TERMS. As used in this AGREEMENT, the following terms have
the following meanings (terms defined in the singular to have the same meaning
when used in the plural and vice versa):

         "AGREEMENT" shall mean this UNCOMMITTED AND REVOLVING CREDIT LINE
AGREEMENT, as it may be amended, amended and restated, supplemented, or
otherwise modified from time to time.

         "APPLICABLE INTEREST RATE" shall mean, with respect to any LOAN, the
interest rate per annum quoted by the BANK and agreed to by the BORROWER at the
time of making each LOAN.

         "BUSINESS DAY" shall mean any day other than a Saturday, Sunday, or
other day on which commercial banks in the city of New York, New York or the
city of San Francisco, California are authorized or required to close.

         "CHANGE OF CONTROL" with respect to the BORROWER will occur if the
PARENT ceases to own, directly or indirectly, and free and clear of liens or
encumbrances, 94% or more of the issued and outstanding voting stock of the
BORROWER.

         "COLLATERAL" shall have the definition assigned to such term in the
SECURITY AGREEMENT.

         "CREDIT LINE" shall mean a discretionary and uncommitted line of credit
which the BANK establishes for the BORROWER pursuant to SECTION 2.01 hereof up
to the amount referred to therein but which may be terminated in whole or
reduced in part pursuant to SECTION 2.02 hereof. This CREDIT LINE shall not be
construed as the commitment of the BANK to make any LOAN or extension of credit.

         "DEFAULT" shall mean any of the events specified in SECTION 7.01
hereof, whether or not any requirement for the giving of notice, the lapse of
time, or both, or any other condition, has been satisfied.

         "DEFAULT RATE" shall have the meaning assigned to such term in SECTION
2.04(b) hereof.

         "DOLLARS", "U.S. DOLLARS", "U.S.$", and "$" shall mean the lawful
currency of the United States of America at any relevant time hereunder.

         "EVENT OF DEFAULT" shall mean any of the events specified in SECTION
7.01 hereof.

         "GENERALLY ACCEPTED ACCOUNTING PRINCIPLES" or "GAAP" means generally
accepted accounting principles as in effect from time to time, including,
without limitation, applicable statements, bulletins and interpretations issued
by the Financial Accounting Standards Board and bulletins, opinions,
interpretations and statements issued by the American Institute of Certified
Public Accountants or its committees.

         "GOVERNMENTAL BODY" means any court, department, commission, board,
bureau, agency, public authority or instrumentality of the United States or any
country, any state or any political subdivision thereof.

         "LAST DRAWDOWN DATE" shall mean February 28, 2005.

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         "LIEN" means (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same
economic effect as any of the foregoing) relating to the asset subject to such
interest and (c) in the case of securities, any purchase option, call or similar
right of a third party with respect to such securities.

         "LOAN" or "LOANS" shall have the meaning assigned to such term in
SECTION 2.01 hereof.

         "LOAN DOCUMENTS" (individually, a "LOAN DOCUMENT") shall mean this
AGREEMENT, the NOTE, the SECURITY AGREEMENT and any other agreements,
instruments, certificates and documents executed in connection with the LOANS.

         "NET WORTH" shall mean the difference between the assets and
liabilities of the BORROWER, each as computed in accordance with GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES.

         "NOTE" shall have the meaning assigned to such term in SECTION 2.05
hereof.

         "PARENT" shall mean Yaskawa Electric Corporation, a Japanese
corporation.

         "PROPERTY" shall mean all types of real or personal property, including
without limitation, tangible, intangible or mixed property.

         "REGULATIONS T, U and X" shall mean REGULATIONS T, U and X of the Board
of Governors of the Federal Reserve System as from time to time in effect
related to margin stock transactions.

         "SECURITY AGREEMENT" shall mean the SECURITY AGREEMENT dated as of
March 1, 2004 between the BANK and the BORROWER, as it may be amended, replaced
or renewed from time to time, in which the BORROWER grants to the BANK a
security interest in the COLLATERAL.

                                   ARTICLE II
                            AMOUNT AND TERMS OF LOANS

SECTION 2.01. REVOLVING CREDIT. The BANK may, upon request from BORROWER, in the
BANK's sole and absolute discretion upon the terms hereinafter set forth, make
one or more loans (the "LOANS") to the BORROWER from time to time during the
period from the date of this AGREEMENT up to and including the LAST DRAWDOWN
DATE in an aggregate amount not to exceed at any time outstanding TWO MILLION
FIVE HUNDRED THOUSAND DOLLARS (U.S.$2,500,000.00); such amount may be reduced
pursuant to SECTION 2.02 hereof (the "CREDIT LINE"). LOANS may have a maturity
of from one day to six (6) months from the date of borrowing, as requested by
the BORROWER in accordance with SECTION 2.03 and agreed to by the BANK. Within
the limits of the CREDIT LINE, the BORROWER may borrow pursuant to SECTION 2.03
hereof, repay pursuant to SECTION 2.07 hereof, and re-borrow and repay under
SECTIONS 2.03 and 2.07 hereof, respectively. The availability of the CREDIT LINE
hereunder shall not be construed as the commitment of the BANK to make any LOAN.

SECTION 2.02. REDUCTION AND TERMINATION OF CREDIT LINE. The BANK shall have the
unrestricted right in its sole and absolute discretion, upon notice to the
BORROWER, to immediately terminate in whole or reduce in part the unused portion
of the CREDIT LINE.

SECTION 2.03. NOTICE AND MANNER OF BORROWING. Not later than 11:00 a.m., San
Francisco time, the BORROWER shall give the BANK telephonic application for a
LOAN under this AGREEMENT to the BANK's customer desk (or such other contact as
the BANK may inform the BORROWER from time to time), which may or may not be
accepted by the BANK, specifying (i) the date of such LOAN; (ii) the amount of
such LOAN; and (iii) the requested maturity date for the LOAN. The BANK will
send written confirmation of the LOAN to the BORROWER at the facsimile number
listed in SECTION 8.06 hereof. The BORROWER will acknowledge the information
shown in the confirmation by promptly returning it to the BANK's New York Branch
by facsimile at

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(212) 224-4537. Not later than 4:00 p.m., New York time (1:00 p.m. San Francisco
time), on the date of such LOAN and upon fulfillment of the applicable
conditions set forth in ARTICLE III hereof, the BANK will, subject to its sole
and absolute discretion and subject to the provisions of SECTION 2.01 hereof,
make such LOAN available to the BORROWER in immediately available funds by
crediting the amount thereof to the BORROWER's account with the BANK. All
notices given under this SECTION 2.03 shall be irrevocable. The failure to give
any confirmation referred to herein shall not release or diminish any of the
BORROWER's obligations hereunder.

SECTION 2.04. INTEREST.

         (a)      The BORROWER agrees to pay interest to the BANK on the
outstanding and unpaid principal amount of each LOAN made under this AGREEMENT
at the APPLICABLE INTEREST RATE. Interest shall be calculated on the basis of a
year of 360 days for the actual number of days elapsed. Interest shall be paid
in immediately available funds on the maturity of each LOAN.

         (b)      To the extent permitted by applicable law, any amount of
principal of any LOAN and interest thereon which is not paid when due, whether
at stated maturity, acceleration or otherwise, shall bear interest, payable on
demand, at an interest rate per annum equal to 2% per annum above the rate of
interest announced by the New York Branch of Sumitomo Mitsui Banking Corporation
from time to time as the BANK's prime rate (the "DEFAULT RATE") until paid in
full.

SECTION 2.05. NOTE. All the LOANS made by the BANK under this AGREEMENT shall be
evidenced by and repaid with interest in accordance with a single grid
promissory note, substantially in the form of EXHIBIT "A" attached hereto, in
the maximum principal amount of the CREDIT LINE, dated the date of this
AGREEMENT, duly completed and executed by the BORROWER and payable to the BANK
(the "NOTE"). The BANK is hereby authorized by the BORROWER to endorse on the
schedule attached to the NOTE, or to attach a form designated by the BANK,
indicating the amount, APPLICABLE INTEREST RATE, maturity date and other
relevant terms of each LOAN and of each repayment of principal received by the
BANK on account of the LOANS (such endorsement or form may be by means of a
computer printout), which endorsement/form shall, in the absence of manifest
error, be conclusive as to the outstanding balance of the LOANS made by the
BANK; provided, that the failure to make such notation with respect to any LOAN
or payment thereof shall not limit or otherwise affect the obligations of the
BORROWER under this AGREEMENT or the NOTE. Any calculation made by the BANK of
interest and any other amount payable under this AGREEMENT shall, in the absence
of manifest error, be conclusive and final.

SECTION 2.06. FUNDING LOSS, INDEMNIFICATION; CAPITAL ADEQUACY AND OTHER CHARGES
AND COSTS.

         (a)      BORROWER hereby agrees to indemnify and hold BANK free and
harmless from all losses, costs and expenses which BANK may incur, to the extent
not mitigated by the redeployment of deposits or other funds, as a result of (i)
a default by BORROWER in payment when due of the principal of or interest on any
LOAN, (ii) BORROWER's failure (other than due solely to a failure attributable
to a default by BANK) to make a borrowing or continuation with respect to any
LOAN after making a request therefor, (iii) a prepayment (whether mandatory or
otherwise, including but not limited to, acceleration of the LOANS by the BANK
pursuant to SECTION 7.01 hereof) of any LOAN before a scheduled payment date for
interest or principal, or (iv) any DEFAULT by BORROWER under this AGREEMENT or
any demand for payment of any LOAN by BANK permitted hereunder or under any LOAN
DOCUMENT.

         (b)      If the BANK determines at any time that any applicable law or
governmental rule, regulation, guideline or order concerning capital adequacy,
reserves or similar requirements, or any change in interpretation or
administration thereof by any GOVERNMENTAL BODY, central bank or comparable
agency, will have the effect of increasing the cost to the BANK or the amount of
capital required or expected to be maintained by the BANK as a result of the
making or continuance of the LOANS, then the BORROWER agrees to pay to the BANK,
upon its written demand therefor, such additional amounts as shall be required
to compensate the BANK for the increased cost to the BANK as a result of such
increase of capital, reserves or similar requirements. The BANK, upon
determining that any additional amounts will be payable to the BANK pursuant to
this paragraph will give prompt written notice thereof to the BORROWER which
notice shall show in reasonable detail the basis for calculation of

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such additional amounts, although the failure to give any such notice shall not
release or diminish any of the BORROWER's obligations to pay additional amounts
pursuant to this paragraph.

         (c)      If any present or future applicable law, rule or regulation or
any change therein or in the interpretation or administration thereof by any
GOVERNMENTAL BODY, central bank or comparable agency charged with the
interpretation or administration thereof or compliance by BANK with any request
or directive of any such GOVERNMENTAL BODY, central bank or comparable agency,
whether or not having the force of law, results in an increase of the cost to
BANK of making, renewing or maintaining any LOAN, or reduce the amount of any
sum receivable by BANK under any LOAN, in the reasonable judgment of BANK, then,
upon demand by BANK, BORROWER agrees to pay to BANK such additional amount or
amounts as would compensate BANK for such increased cost or reduction. BANK's
computation of such amount or amounts shall be binding on BORROWER absent
manifest error.

SECTION 2.07. METHOD OF PAYMENT. The BORROWER shall make each payment of
principal or interest of the LOANS, in lawful money of the United States in
immediately available funds, not later than 3:00 p.m. (New York time) on the
date when such payment is due, to the BANK's account at CITIBANK, N.A. NEW YORK,
ABA NO. 021000089, FOR THE ACCOUNT OF SUMITOMO MITSUI BANKING CORPORATION,
ACCOUNT NO. 36023837, (CBDA-1 LOAN SERVICES DEPARTMENT, FOR SYNETICS SOLUTIONS,
INC.), or to such other location or in such other manner as the BANK may notify
the BORROWER in writing. The BORROWER hereby authorizes the BANK to charge from
time to time against BORROWER's account #045-287930-70, or any other account of
the BORROWER with the BANK, any amounts due hereunder or under the NOTE. The
BORROWER may, with the BANK's prior consent, and on not less than five days'
notice, prepay the principal and interest of each LOAN in whole or in part, but
only on condition that the prepayment is accompanied by payment of any and all
additional costs, as determined by the BANK, that the BANK may incur as a result
of such prepayment, including, without limitation, the breaking of any deposit,
the redeployment of funds released by any prepayment, the termination of any
swap or hedging contract, or otherwise.

SECTION 2.08. PAYMENTS ON NON-BUSINESS DAYS. Whenever payment shall fall due on
a day which is not a BUSINESS DAY, payment shall be made on the next succeeding
BUSINESS DAY, unless such BUSINESS DAY falls in the following calendar month, in
which case payment shall be due on the next preceding BUSINESS DAY.

SECTION 2.09. USE OF PROCEEDS. The BORROWER will not use any part of the LOAN
proceeds, directly or indirectly, for the purpose of purchasing or carrying any
margin stock, within the meaning of REGULATIONS T, U and X of the Board of the
Governors of the Federal Reserve System, or extending credit to any person for
the purpose of purchasing or carrying any such margin stock.

                                  ARTICLE III
                              CONDITIONS PRECEDENT

SECTION 3.01. CONDITIONS PRECEDENT TO INITIAL AND ALL LOANS. The BANK may in its
sole and absolute discretion make LOANS available to the BORROWER, subject to
the conditions precedent that, on or before the day of the initial LOAN, the
BANK shall have received each of the following, in form and substance
satisfactory to the BANK:

                  (1)      AGREEMENT, SECURITY AGREEMENT AND NOTE. This
AGREEMENT, the SECURITY AGREEMENT and the NOTE, each duly executed by the
BORROWER;

                  (2)      EVIDENCE OF ALL CORPORATE ACTION BY THE BORROWER.
Certified copies of the unanimous written consent of the Board of Directors of
the BORROWER or a certified copy of the resolutions duly adopted by the Board of
Directors, satisfactory to the BANK, authorizing the execution, delivery and
performance of the LOAN DOCUMENTS to which the BORROWER is a party and each
other document to be delivered pursuant to this AGREEMENT; and

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                  (3)      INCUMBENCY AND SIGNATURE CERTIFICATE OF THE BORROWER.
A certificate of the President or Vice President (or other appropriate officer)
of the BORROWER, satisfactory to the BANK, certifying the names and true
signatures of the officers of the BORROWER authorized, pursuant to the Board of
Directors' resolutions referred to in paragraph (2) above, to sign the LOAN
DOCUMENTS to which the BORROWER is a party and the other documents to be
delivered by the BORROWER under this AGREEMENT.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES

BORROWER hereby represents and warrants to BANK as follows at each time it makes
an application for a LOAN:

SECTION 4.01. DUE INCORPORATION; GOOD STANDING. BORROWER is a corporation, duly
organized and validly existing under the laws of the state of its incorporation,
and is properly licensed and in good standing in, and where necessary to
maintain BORROWER's rights and privileges, has complied with the fictitious name
statute of, every jurisdiction in which BORROWER is doing business.

SECTION 4.02. CORPORATE POWER; AUTHORIZATION. The execution, delivery and
performance of this AGREEMENT, the NOTE or any other LOAN DOCUMENTS are within
BORROWER's powers, have been duly authorized, and are not in conflict with the
terms of its certificate of incorporation and by-laws (or such other
organizational and governing documents as may be applicable) or any agreement,
instrument or document to which BORROWER is a party or by which BORROWER or any
of its PROPERTY is bound or affected.

SECTION 4.03. GOVERNMENT ACTION. No approval, consent, exemption or other action
by, or notice to or filing with, any GOVERNMENTAL BODY is necessary in
connection with the execution, delivery, performance or enforcement of this
AGREEMENT, the NOTE or any other LOAN DOCUMENTS, except as may have been
obtained and certified copies of which have been delivered to BANK.

SECTION 4.04. NO LEGAL BAR. There is no law, rule or regulation, nor is there
any judgment, decree or order of any court or GOVERNMENTAL BODY binding on
BORROWER which would be contravened by the execution, delivery, performance or
enforcement of this AGREEMENT, the NOTE or any other LOAN DOCUMENTS.

SECTION 4.05. ENFORCEABLE OBLIGATION. This AGREEMENT is a legal, valid and
binding agreement of BORROWER, enforceable against BORROWER in accordance with
its terms, and the NOTE and/or any other LOAN DOCUMENTS, when executed and
delivered (and as endorsed from time to time), will be similarly legal, valid,
binding and enforceable.

SECTION 4.06. LITIGATION. There are no suits, proceedings, claims or disputes
pending or, to the best knowledge of BORROWER after having made due inquiry,
threatened against or affecting BORROWER or its respective PROPERTIES, the
adverse determination of which could affect BORROWER's financial condition or
operations or could impair BORROWER's ability to perform its obligations
hereunder, under the NOTE or any other LOAN DOCUMENTS.

SECTION 4.07. NO DEFAULT. No event has occurred and is continuing or would
result from the incurring of obligations by BORROWER under this AGREEMENT, the
NOTE or any other LOAN DOCUMENTS which is a default under any agreement or
document to which BORROWER is a party or which, with the passing of time or
giving of notice or both, would become a default under any such document.

SECTION 4.08. NO CONFLICTING AGREEMENTS. BORROWER is not in default under any
agreement to which it is a party or by which it or any of its PROPERTY is bound
the effect of which could have a material adverse effect on the business or
operations of BORROWER, or could impair BORROWER's ability to perform its
obligations hereunder, under the NOTE or any other LOAN DOCUMENTS, except as
disclosed in writing to BANK.

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SECTION 4.09. TAXES. BORROWER has filed or caused to be filed all tax returns
required to be filed, and has paid, or has made adequate provision for the
payment of, all taxes shown to be due and payable on said returns or in any
assessments made against it, and, to the best knowledge of BORROWER after having
made due inquiry, no tax liens have been filed and no claims are being asserted
with respect to such taxes which are required to be reflected in the financial
statements of BORROWER and are not so reflected therein.

SECTION 4.10. COMPLIANCE WITH APPLICABLE LAWS. BORROWER is not in violation with
respect to any judgment, order, writ, injunction, decree or decision of any
GOVERNMENTAL BODY which violation could have a material adverse effect on the
financial condition, operations or PROPERTY of BORROWER, or could impair
BORROWER's ability to perform its obligations hereunder, under the NOTE or any
other LOAN DOCUMENTS, except as disclosed in writing to BANK. BORROWER has made
due inquiry and, to the best of its knowledge, BORROWER is complying in all
material respects with all applicable statutes and regulations, including
applicable occupational, safety and health and other labor laws and applicable
environmental laws, of all GOVERNMENTAL BODIES, a violation of which could have
a material adverse effect on the financial condition, operations or PROPERTY of
BORROWER, or could impair BORROWER's ability to perform its obligations
hereunder, under the NOTE or any of the LOAN DOCUMENTS except as otherwise
disclosed in writing to BANK.

SECTION 4.11. NO MISREPRESENTATION. Neither this AGREEMENT, nor any other LOAN
DOCUMENT, nor any certificate, notice, report, financial statement or document
furnished to date or to be furnished by BORROWER in connection with the
transactions contemplated hereby contains or will contain a misrepresentation or
misstatement of material fact, or omits or will omit to state a material fact
required to be stated in order to make the statements herein or therein
contained (taken as a whole) not misleading in the light of the circumstances
under which made.

                                   ARTICLE V
                              AFFIRMATIVE COVENANTS

         BORROWER covenants and agrees to, so long as any obligation or
indebtedness to BANK remains outstanding unless BANK waives compliance in
writing:

SECTION 5.01. FINANCIAL AND OTHER INFORMATION. Deliver to the BANK such
information respecting the business, properties, condition or operation,
financial or otherwise, of the BORROWER as the BANK may from time to time
reasonably request, including:

         (a)      as soon as practicable and in any event within 120 days after
the end of each fiscal year of the BORROWER, a complete copy of the annual
financial statements of the BORROWER, which shall include at least the balance
sheet of the BORROWER as of the end of such fiscal year, and the related
statements of income, retained earnings, and cash flow for such fiscal year, all
with accompanying notes, and stating in comparative form the figures as of the
end of and for the previous fiscal year, all in reasonable detail, audited and
reported upon by an independent certified public accounting firm of recognized
standing regularly retained by the BORROWER; and

         (b)      if available, as soon as practicable and in any event within
90 days after the end of the first semiannual period of each fiscal year of the
BORROWER, a complete copy of the semiannual financial statements of the
BORROWER, prepared as stated in SECTION 5.01(a) above, except that such
financial statements need not be audited.

All financial statements delivered under this SECTION 5.01 shall have been
prepared in conformity with GAAP, consistently applied (except as differences
from GAAP shall have been disclosed to, and approved by, the BANK) and shall be
certified by a responsible financial officer of the BORROWER as being true and
correct in all material respects and presenting fairly the financial position
and results of operations of the BORROWER for the period covered, subject, in
the case of semiannual financial statements, to normal year-end adjustments.

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SECTION 5.02. PROMPT NOTICE. Immediately give written notice to BANK of:

                  (1)      all litigation affecting BORROWER or PARENT as a
defendant where the amount claimed in a single litigation action is in excess of
$100,000 or when the aggregate amount claimed in all litigation actions is in
excess of $500,000;

                  (2)      any substantial dispute which may exist between
BORROWER or PARENT and any GOVERNMENTAL BODY;

                  (3)      any default which, with the passing of time, giving
of notice, or both would become an EVENT OF DEFAULT or any event of default
under any documents to which BORROWER is a party; and.

                  (4)      any other matter which has resulted or could result
in a material adverse change in BORROWER's or PARENT's financial condition or
operations or impairment of BORROWER's or PARENT's ability to perform its
obligations hereunder, under the NOTE or any other LOAN DOCUMENTS.

SECTION 5.03. PAYMENT OF OBLIGATIONS. Pay all obligations, including taxes, when
due, except such as may be contested in good faith by appropriate proceedings
and for which BORROWER has established reserves on its books which are
reasonable and adequate.

SECTION 5.04. COMPLIANCE WITH LEGAL REQUIREMENTS. At all times comply with all
laws, rules, regulations, orders and directions of any GOVERNMENTAL BODY having
jurisdiction over it or its business.

SECTION 5.05. MAINTAIN EXISTENCE; PROPERTY. Maintain and preserve (i) its
existence as a legal entity and all rights, privileges and franchises now
enjoyed; and (ii) all of its PROPERTIES that are used or useful in the conduct
of its business in good working order and condition, ordinary wear and tear
excepted.

SECTION 5.06. BOOKS AND RECORDS. Maintain adequate books, accounts and records,
all in accordance with GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, and permit
employees or agents of BANK at any reasonable time and as often as may
reasonably be desired to inspect its PROPERTIES, and to examine or audit its
books, accounts and records and make copies thereof and to discuss the business,
operations, PROPERTIES and financial and other conditions of BORROWER with
officers of BORROWER.

SECTION 5.07. INSURANCE. To the extent there exists any real property security
interest, maintain and keep in force, on all of its property such insurance as
is normal for the industry in which BORROWER conducts its business and is
satisfactory to BANK as to amount, nature and carrier, covering fire damage
(including use and occupancy), public liability, product liability, property
damage and workers' compensation, and deliver to BANK upon request a schedule
certified to be correct by a responsible officer of BORROWER setting forth all
insurance in force as of the date of such schedule.

SECTION 5.08. FURTHER ASSURANCES. BORROWER will from time to time perform any
and all acts and execute any and all additional document as may be reasonably
requested by BANK to give effect to the purposes of this AGREEMENT, the NOTE or
any other LOAN DOCUMENTS.

                                   ARTICLE VI
                               NEGATIVE COVENANTS

         BORROWER covenants and agrees that, until full and final payment of all
indebtedness hereunder and/or under the NOTE, without the prior written consent
of BANK:

SECTION 6.01. LIMITATIONS ON FUNDAMENTAL CHANGES. BORROWER will not consummate
any transaction of merger or consolidation, reorganize, spin-off, liquidate,
dissolve or wind up (or suffer any reorganization, liquidation, dissolution or
winding up) or convey, sell, lease, license or otherwise dispose of, in one or a
series of related transactions, all or substantially all of the PROPERTY, assets
or business of BORROWER.

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SECTION 6.02. NEGATIVE PLEDGE. BORROWER will not create, incur, assume or permit
to exist any LIEN on any PROPERTY now owned or hereafter acquired by it, or
assign or sell any income or revenues (including accounts receivable) or rights
in respect of any thereof, except:

         (a)      LIENS imposed by law, such as (i) carrier's, warehousemen's,
materialmen's, repairmen's and mechanic's liens incurred in the ordinary course
of business which are not more than 30 days overdue and (ii) LIENS for taxes,
assessments or other governmental charges or levies which are not yet due;

         (b)      pledges or deposits made in the ordinary course of business in
compliance with workers' compensation, unemployment insurance and social
security laws or regulations, or to secure the performance of bids, tenders,
trade contracts, leases, or as security for surety bonds, appeal bonds,
performance bonds, indemnity bonds and other obligations of a like nature,
whether statutory or contractual;

         (c)      easements, zoning restrictions, rights-of-way, licenses and
similar encumbrances on the use of real property (including leases and
subleases) or minor irregularities incident thereto that do not secure any
monetary obligations and do not, individually or in the aggregate, materially
detract from the value of the property subject thereto or interfere with the
operation of BORROWER's business;

         (d)      LIENS granted from time to time to the BANK, together with any
renewals thereof and amendments thereto;

         (e)      purchase money LIENS on assets securing indebtedness incurred
or assumed solely for the purpose of financing all or any part of the cost of
acquiring such asset, provided that (i) such LIEN attaches to such asset
concurrently with or within 90 days of the acquisition of such asset, (ii) the
principal amount of indebtedness secured by such LIEN shall at no time exceed
90% of the fair market value of such asset and (iii) such LIEN shall at all
times be confined solely to the asset subject to such lien at the time of its
creation, plus improvements thereto and proceeds thereof; and

         (f)      LIENS existing and disclosed to the BANK prior to the date
hereof, together with renewals thereof and amendments thereto, provided that (i)
no renewal or amendment may extend such LIEN to cover any other property of the
BORROWER and (ii) the total amount of indebtedness secured by any such LIEN
shall not be increased.

SECTION 6.03. NET WORTH. The BORROWER will not permit or suffer its NET WORTH to
be less than U.S.$0.00 as of any time of determination.

                                   ARTICLE VII
                                EVENTS OF DEFAULT

SECTION 7.01. EVENTS OF DEFAULT. The occurrence of any of the following events
shall constitute an EVENT OF DEFAULT under this AGREEMENT and the NOTE:

                  (1)      BORROWER shall fail to pay any principal payable
under this AGREEMENT or the NOTE as and when due, whether at maturity, on
demand, upon acceleration or otherwise; or

                  (2)      BORROWER shall fail to pay any amount of interest,
fees, expenses, indemnity payments or any other amount payable by BORROWER under
this AGREEMENT, the NOTE or any other LOAN DOCUMENTS within ten (10) days of the
date when such amounts are due, whether at maturity, on a specified date, on
demand, upon acceleration or otherwise; or

                  (3)      Any representation or warranty made by the BORROWER
in this AGREEMENT or any other LOAN DOCUMENT shall prove to have been false or
misleading in any material respect when made or when deemed to have been made;
or

                                      -8-

<PAGE>

                  (4)      BORROWER or PARENT shall (i) fail to pay its debts
generally as they come due, (ii) conceal, remove or transfer any of its PROPERTY
in violation or evasion of any bankruptcy, fraudulent conveyance or similar law,
(iii) make a general assignment for the benefit of its creditors, (iv) apply for
or consent to the appointment of a receiver, trustee, assignee, custodian,
sequestrator, liquidator or similar official for itself or any of its PROPERTY,
(v) file any petition or action for relief under any bankruptcy, reorganization,
insolvency or moratorium law, or any other law or laws for the relief of, or
relating to, debtors, (vi) be adjudicated a bankrupt or insolvent or (vii) take
any action for the purpose of effecting any of the foregoing; or

                  (5)      An involuntary petition shall be filed under any
bankruptcy, reorganization, insolvency, moratorium or similar statute against
BORROWER or PARENT or a custodian, receiver, trustee, assignee for the benefit
of creditors (or other similar official) shall be appointed to take possession,
custody or control of any PROPERTY of BORROWER or PARENT unless such petition or
appointment is set aside or withdrawn or ceases to be in effect within 30 days
from the date of said filing or appointment; or

                  (6)      Any judgment or order for the payment of money in
excess of $50,000 is rendered against BORROWER or PARENT and such judgment or
order is not satisfied, and either (i) enforcement proceedings are commenced by
any creditor upon such judgment or order or (ii) there is any period of ten (10)
consecutive days during which a stay of enforcement of such judgment or order,
by reason of a pending appeal or otherwise, is not in effect; or

                  (7)      All, or such as in the opinion of BANK constitutes
substantially all, of the PROPERTIES of BORROWER or PARENT shall be condemned,
seized or appropriated; or

                  (8)      BORROWER shall breach, or default under, any other
term, condition, provision or covenant contained in any of the LOAN DOCUMENTS;
or

                  (9)      BORROWER shall be in breach of or default under any
term, condition, provision or covenant contained in any agreement to which it is
a party relating to borrowed money; or

                  (10)     A CHANGE OF CONTROL of the BORROWER shall occur
without the prior written consent of the BANK; or

                  (11)     Any guarantee, letter of awareness or other document
issued in support of the obligations of the BORROWER to the BANK shall expire
without renewal, be disclaimed or disavowed, or, in the case of a guarantee,
shall cease to be the valid, binding and enforceable obligation of the guarantor
thereunder; or

                  (12)     The SECURITY AGREEMENT shall for any reason cease to
create a valid and perfected lien on the COLLATERAL purported to be covered
thereby, or the priority of such lien shall at any time rank lower than it is on
the date of this AGREEMENT except if solely due to the gross negligence or
willful misconduct of the BANK; or

                  (13)     The occurrence of any event which BANK believes has
had or could have a material adverse effect upon BORROWER, or could impair
BORROWER's ability to perform its obligations hereunder, under the NOTE or any
other LOAN DOCUMENTS.

SECTION 7.02. REMEDIES. Upon the occurrence of any EVENT OF DEFAULT, BANK may in
its sole and absolute discretion declare the LOANS (with accrued interest
thereon) and all other amounts owing under this AGREEMENT and/or the NOTE to be
due and payable forthwith whereupon the same will immediately become due and
payable (except that in the case of an EVENT OF DEFAULT under 7.01(4) or 7.01(5)
above, such acceleration shall be automatic), without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in any LOAN DOCUMENT to the contrary
notwithstanding. The foregoing remedy is in addition to any and all other
remedies available to BANK under the NOTE, at law or in equity. The BORROWER
hereby agrees to indemnify the BANK and save the BANK harmless from and against
any and all costs, losses or expenses incurred by the BANK as a result of the
occurrence of an EVENT OF DEFAULT or the repayment of any amount hereunder or
under the NOTE other than on the date or dates originally

                                      -9-

<PAGE>

due (including without limitation such as are incurred in connection with the
reemployment or liquidation of funds acquired from third parties by the BANK in
order to maintain any amount theretofore outstanding hereunder or under the
NOTE, the termination of any hedging contract or swap or other arrangement
relating to the funding of the LOANS).

                                  ARTICLE VIII
                                  MISCELLANEOUS

SECTION 8.01. INDEMNITY. BORROWER agrees to indemnify, defend, reimburse and
hold harmless BANK and each of its affiliates, and all the directors, officers,
employees, agents, legal counsel and advisors of BANK (each, an "INDEMNIFIED
PARTY") from and against all claims, actions, proceedings, suits, damages,
losses, liabilities, costs and expenses, including the fees and out-of-pocket
expenses of counsel which may be incurred by or asserted against any INDEMNIFIED
PARTY in connection with, or arising out of, or relating to any transaction or
proposed transaction (whether or not consummated), contemplated by this
AGREEMENT or any LOAN DOCUMENT.

SECTION 8.02. SUCCESSORS AND ASSIGNS; ASSIGNMENTS; PARTICIPATIONS. This
AGREEMENT shall be binding upon and inure to the benefit of the BORROWER and the
BANK and their respective successors and assigns, except that the BORROWER may
not assign or transfer any of its rights under any LOAN DOCUMENT to which the
BORROWER is a party without the prior written consent of the BANK. The BANK may
assign or transfer to any other person all or part of the CREDIT LINE or the
indebtedness of BORROWER outstanding under this AGREEMENT and/or any LOAN
DOCUMENT. The BANK may at any time sell or grant participations in all or part
of the CREDIT LINE.

SECTION 8.03. ENTIRE AGREEMENT. This AGREEMENT and the LOAN DOCUMENTS integrate
all the terms and conditions mentioned herein or incidental hereto, and
supersede all oral negotiations and prior writings with respect to the subject
matter hereof.

SECTION 8.04. COUNTERPARTS. This AGREEMENT and any amendments, waivers, consents
or supplements may be executed in as many counterparts as may be deemed
necessary or convenient, and by the different parties hereto on separate
counterparts, each of which, when so executed, shall be deemed an original, but
all such counterparts shall constitute but one and the same agreement.

SECTION 8.05. AMENDMENTS, ETC. No amendment, modification, termination, or
waiver of any provision of any LOAN DOCUMENT to which the BORROWER is a party,
nor consent to any departure by the BORROWER from any LOAN DOCUMENT to which it
is a party, shall in any event be effective unless the same shall be in writing
and signed by the BANK, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which it is given.

SECTION 8.06. NOTICES, ETC. All notices and other communications provided for
under this AGREEMENT and under the other LOAN DOCUMENTS to which the BORROWER is
a party shall be in writing, delivered in person, sent by certified mail
(postage prepaid), or sent by telecopier and promptly confirmed by letter. Any
such notice shall be effective when so given,

If to the BORROWER:        Synetics Solutions Inc.
                           18870 NE Riverside Parkway
                           Portland, OR 97320
                           Attention: Mr. Hiroshi Yoshio
                           Telephone: (503) 465-6000
                           Facsimile: (503) 465-6491

                                      -10-

<PAGE>

If to the BANK:            Sumitomo Mitsui Banking Corporation
                           555 California Street, Suite 3350
                           San Francisco, CA 94104
                           Attention: CBDA-1
                           Telephone: (415) 616-3000
                           Facsimile: (415) 397-1475

or, as to each party, at such other address as shall be designated by such party
in a written notice to the other party complying as to delivery with the terms
of this SECTION 8.06. All such notices and communications shall, when mailed or
telecopied, be effective when deposited in the mails or telecopied,
respectively, addressed as aforesaid, except that notices to the BANK pursuant
to the provisions of ARTICLE II hereof shall not be effective until received by
the BANK.

SECTION 8.07. NO WAIVER; REMEDIES. No failure on the part of the BANK to
exercise, and no delay in exercising, any right, power, or remedy under any LOAN
DOCUMENT shall operate as waiver thereof; nor shall any single or partial
exercise of any right under any LOAN DOCUMENT preclude any other or further
exercise thereof or exercise of any other right. The remedies provided in the
LOAN DOCUMENTS are cumulative and not exclusive of any remedies provided by law.

SECTION 8.08. COSTS, EXPENSES, AND TAXES. The BORROWER agrees to pay on demand
all costs and expenses in connection with the preparation, execution, delivery,
filing, recording, and administration of any of the LOAN DOCUMENTS, including,
without limitation, the reasonable fees and out-of-pocket expenses of counsel
for the BANK, and local counsel who may be retained by said counsel, with
respect thereto and with respect to advising the BANK as to its rights and
responsibilities under any of the LOAN DOCUMENTS, and all costs and expenses, if
any, in connection with enforcement of any of the LOAN DOCUMENTS, including,
without limitation, "work-out," insolvency or bankruptcy proceedings. In
addition, the BORROWER shall pay any and all stamp and other taxes and fees
payable or determined to be payable in connection with the execution, delivery,
filing, and recording of any of the LOAN DOCUMENTS and the other documents to be
delivered under any of the LOAN DOCUMENTS, and agrees to save the BANK harmless
from and against any and all liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees.

SECTION 8.09. DEDUCTIONS. All payments by the BORROWER to the BANK under this
AGREEMENT are to be made net and free of any and all taxes (except for taxes
based upon the overall net income of the BANK), duties, imposts, fees,
withholdings or deductions (the "DEDUCTIONS") of any nature now or hereafter
imposed. If any DEDUCTION is, by law, required to be made from any payment
hereunder, then the BORROWER shall pay to the BANK such additional amount as
will result in receipt by the BANK of a net amount equal to the amount the BANK
would have received hereunder had no such DEDUCTION been required. In such event
the BORROWER shall, as soon as practical, deliver to the BANK a receipt issued
by the relevant taxing authority evidencing the amount of such DEDUCTION and its
payment. If the BORROWER is required to pay an additional amount on account of
any such DEDUCTION, the BORROWER shall have the right, on not less than three
BUSINESS DAYS' prior written notice to the BANK, to repay the applicable LOAN.

SECTION 8.10. RIGHT OF SET OFF. Upon the occurrence and during the continuance
of any EVENT OF DEFAULT the BANK is hereby authorized at any time and from time
to time, without notice to the BORROWER (any such notice being expressly waived
by the BORROWER), to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held, and other indebtedness
at any time owing by the BANK to or for the credit or the account of the
BORROWER against any and all of the obligations of the BORROWER now or hereafter
existing under the AGREEMENT or the NOTE or any other LOAN DOCUMENT,
irrespective of whether or not the BANK shall have made any demand under this
AGREEMENT or such other LOAN DOCUMENT and although such obligations may be
unmatured. The BANK agrees promptly to notify the BORROWER after any such set
off and application, provided that the failure to give such notice shall not
affect the validity of such set off and application. The rights of the BANK
under this SECTION 8.10 are in addition to other rights and remedies (including,
without limitation, other rights of set off) which the BANK may have.

SECTION 8.11. GOVERNING LAW; CONSENT TO JURISDICTION. This AGREEMENT and the
NOTE shall be governed by and construed in accordance with the laws of the State
of California. Any legal action or

                                      -11-

<PAGE>

proceedings with respect to this AGREEMENT against the BORROWER may be brought
in the courts of the United States of America or the State of California as the
BANK may elect, and, by execution and delivery of this AGREEMENT, the BORROWER
hereby (i) accepts for itself, generally and unconditionally, the non-exclusive
jurisdiction of the aforesaid courts, (ii) irrevocably agrees to be bound by any
judgment of any such court with respect to this AGREEMENT or the NOTE and (iii)
irrevocably waives, to the fullest extent permitted by law, any objection which
it may now or hereafter have to the laying of venue of any suit, action or
proceedings with respect to this AGREEMENT brought in any court of the United
States of America or the State of California located in the City of San
Francisco, and further irrevocably waives any claim that any such suit, action
or proceeding brought in any such court has been brought in an inconvenient
forum. In the case of the courts of the United States of America and State of
California the BORROWER hereby agrees to receive service of process in any legal
action or proceedings with respect to this AGREEMENT at its offices set forth in
SECTION 8.06. Nothing herein shall affect the right to serve process in any
other manner permitted by the law. The BORROWER hereby agrees that the mailing
of such process to the BORROWER shall be deemed personal service and accepted by
the BORROWER for any legal action or proceedings with respect to this AGREEMENT.

SECTION 8.12. SEVERABILITY OF PROVISIONS. Any provision of any LOAN DOCUMENT
which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of such LOAN
DOCUMENT or affecting the validity or enforceability of such provision in any
other jurisdiction.

SECTION 8.13. HEADINGS. ARTICLE and SECTION headings in this AGREEMENT are for
the convenience of reference only and shall not constitute a part of the
applicable LOAN DOCUMENTS for any other purpose.

SECTION 8.14. WAIVER OF JURY TRIAL. THE BANK AND THE BORROWER MUTUALLY WAIVE THE
RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT.

         IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.

                                        SYNETICS SOLUTIONS INC.

                                        By: KOKI NAKAMURA
                                            ------------------------------------
                                            Name:  Koki Nakamura
                                            Title:  Chairman & CEO

                                        SUMITOMO MITSUI BANKING CORPORATION

                                        By: YOSHIAKI KAGEYAMA
                                            ------------------------------------
                                            Name:  Yoshiaki Kageyama
                                            Title:  Senior Vice President

                                      -12-

<PAGE>

                                   EXHIBIT "A"

                        UNCOMMITTED REVOLVING CREDIT NOTE

U.S.$2,500,000.00                                                  March 1, 2004
(maximum amount)                                       San Francisco, California

         FOR VALUE RECEIVED, the undersigned SYNETICS SOLUTIONS INC. (the
"BORROWER"), HEREBY PROMISES TO PAY to the order of SUMITOMO MITSUI BANKING
CORPORATION (the "BANK"), in lawful money of the United States and in
immediately available funds, the principal amount of each LOAN advanced and
listed on the schedule attached to this NOTE (the "GRID") or any similar form
designated by the BANK in its sole and absolute discretion from time to time
pursuant to the LINE AGREEMENT (as defined below), on the due date corresponding
to such LOAN on the GRID, respectively, and to pay interest (computed on the
basis of a year of 360 days and actual number of days elapsed) from the date
made until the repayment date therefor at the rate per annum set forth for such
LOAN on the GRID. Interest shall be payable by the BORROWER to the BANK on the
due date of each such LOAN.

         Notwithstanding any of the foregoing to the contrary, the outstanding
principal balance of this NOTE shall at no time exceed TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS (U.S.$2,500,000.00), and the duration of each LOAN under the
NOTE shall in no event exceed six (6) months from the date of advance pursuant
to the LINE AGREEMENT. Any amount of principal hereof which is not paid when
due, whether at stated maturity, by acceleration, or otherwise, shall bear
interest from the date when due until said principal amount is paid in full,
payable on demand, at the DEFAULT RATE.

         The BORROWER hereby authorizes the BANK to endorse on the GRID or a
similar form all LOANS made to the BORROWER and all payments of principal
amounts in respect of such LOANS, which endorsements shall, in absence of
manifest error, be conclusive as to the outstanding principal amounts of all
LOANS; provided, that the failure to make such notation with respect to any LOAN
or payment thereof shall not limit or otherwise affect the obligations of the
BORROWER under the LINE AGREEMENT and this NOTE.

         This NOTE is the NOTE referred to in the UNCOMMITTED AND REVOLVING
CREDIT LINE AGREEMENT dated as of March 1, 2004, between the BORROWER and the
BANK (the "LINE AGREEMENT"). The LINE AGREEMENT, among other things, contains
provisions for acceleration of the maturity of this NOTE upon the happening of
certain stated events and also for payment on account of the principal amounts
of this NOTE prior to the maturity of this NOTE upon the terms and conditions
specified in the LINE AGREEMENT. Unless otherwise defined herein, terms defined
in the LINE AGREEMENT are used herein as therein defined.

         The BORROWER hereby waives presentment, demand, protest or notice of
any kind with respect to this NOTE.

         THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.

                                             SYNETICS SOLUTIONS INC.

                                             By: _______________________________
                                                 Name:
                                                 Title:

<PAGE>

                  SCHEDULE TO UNCOMMITTED REVOLVING CREDIT NOTE

         CUSTOMER              SYNETICS SOLUTIONS INC.
         LINE AMOUNT           U.S.$2,500,000.00

<TABLE>
<CAPTION>
                                                                                        UNPAID       NAME OF
                     OUR                                                 AMOUNT OF    BALANCE OF     PERSON
 DATE MADE OR     REFERENCE    AMOUNT OF                                 PRINCIPAL    REVOLVING      MAKING
     PAID          NUMBER        LOAN       DUE DATE    INTEREST RATE       PAID        CREDIT      NOTATION
------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>         <C>              <C>          <C>           <C>
------------------------------------------------------------------------------------------------------------

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</TABLE>

<PAGE>

                        UNCOMMITTED REVOLVING CREDIT NOTE

U.S.$2,500,000.00                                                  March 1, 2004
(maximum amount)                                       San Francisco, California

         FOR VALUE RECEIVED, the undersigned SYNETICS SOLUTIONS INC. (the
"BORROWER"), HEREBY PROMISES TO PAY to the order of SUMITOMO MITSUI BANKING
CORPORATION (the "BANK"), in lawful money of the United States and in
immediately available funds, the principal amount of each LOAN advanced and
listed on the schedule attached to this NOTE (the "GRID") or any similar form
designated by the BANK in its sole and absolute discretion from time to time
pursuant to the LINE AGREEMENT (as defined below), on the due date corresponding
to such LOAN on the GRID, respectively, and to pay interest (computed on the
basis of a year of 360 days and actual number of days elapsed) from the date
made until the repayment date therefor at the rate per annum set forth for such
LOAN on the GRID. Interest shall be payable by the BORROWER to the BANK on the
due date of each such LOAN.

         Notwithstanding any of the foregoing to the contrary, the outstanding
principal balance of this NOTE shall at no time exceed TWO MILLION FIVE HUNDRED
THOUSAND DOLLARS (U.S.$2,500,000.00), and the duration of each LOAN under the
NOTE shall in no event exceed six (6) months from the date of advance pursuant
to the LINE AGREEMENT. Any amount of principal hereof which is not paid when
due, whether at stated maturity, by acceleration, or otherwise, shall bear
interest from the date when due until said principal amount is paid in full,
payable on demand, at the DEFAULT RATE.

         The BORROWER hereby authorizes the BANK to endorse on the GRID or a
similar form all LOANS made to the BORROWER and all payments of principal
amounts in respect of such LOANS, which endorsements shall, in absence of
manifest error, be conclusive as to the outstanding principal amounts of all
LOANS; provided, that the failure to make such notation with respect to any LOAN
or payment thereof shall not limit or otherwise affect the obligations of the
BORROWER under the LINE AGREEMENT and this NOTE.

         This NOTE is the NOTE referred to in the UNCOMMITTED AND REVOLVING
CREDIT LINE AGREEMENT dated as of March 1, 2004, between the BORROWER and the
BANK (the "LINE AGREEMENT"). The LINE AGREEMENT, among other things, contains
provisions for acceleration of the maturity of this NOTE upon the happening of
certain stated events and also for payment on account of the principal amounts
of this NOTE prior to the maturity of this NOTE upon the terms and conditions
specified in the LINE AGREEMENT. Unless otherwise defined herein, terms defined
in the LINE AGREEMENT are used herein as therein defined.

         The BORROWER hereby waives presentment, demand, protest or notice of
any kind with respect to this NOTE.

         THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.

                                                     SYNETICS SOLUTIONS INC.

                                                     By: KOKI NAKAMURA
                                                         -----------------
                                                         Name: Koki Nakamura
                                                         Title: Chairman and CEO

<PAGE>

                  SCHEDULE TO UNCOMMITTED REVOLVING CREDIT NOTE

         CUSTOMER              SYNETICS SOLUTIONS INC.
         LINE AMOUNT           U.S.$2,500,000.00

<TABLE>
<CAPTION>
                                                                                        UNPAID       NAME OF
                     OUR                                                 AMOUNT OF    BALANCE OF     PERSON
 DATE MADE OR     REFERENCE    AMOUNT OF                                 PRINCIPAL    REVOLVING      MAKING
     PAID          NUMBER        LOAN       DUE DATE    INTEREST RATE       PAID        CREDIT      NOTATION
------------------------------------------------------------------------------------------------------------
<S>               <C>          <C>          <C>         <C>              <C>          <C>           <C>
------------------------------------------------------------------------------------------------------------

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</TABLE><PAGE>

                                                                    EXHIBIT 10.7

                    MULTI-TENANT INDUSTRIAL TRIPLE NET LEASE

                         Effective Date: July 20, 2000
                 (the date set forth below Landlord's signature)

                             BASIC LEASE INFORMATION

Landlord:                              CATELLUS DEVELOPMENT CORPORATION,
                                       a Delaware corporation

Landlord's Address For                 201 Mission Street
     Notice:                           San Francisco, California 94105
                                       Attn:  Asset Management
                                       Telephone:  (415) 974-4500
                                       Fax:  (415) 974-4687

Landlord's Address                     File #1918
     For Payment of Rent:              P.O. Box 61000
                                       San Francisco, California 94161-1918

Tenant:                                SYNETICS SOLUTIONS INC.,
                                       an Oregon corporation

Tenant's Address                       7440 S.W. Bonita Avenue
     For Notice:                       Tigard, Oregon  97224
                                       Attn:  Koki Nakamura
                                       Telephone: (503) 670-9934
                                       Fax: (503) 639-2264

Project:                               Those portions of "Southshore Corporate
                                       Park" located in the City of Gresham,
                                       County of Multnomah, State of Oregon. A
                                       conceptual plot plan of Southshore
                                       Corporate Park (the "Site Plan") is
                                       attached hereto as Exhibit A-1 (which
                                       indicates thereon the approximate
                                       location of the Premises and other
                                       parcels of land within Southshore
                                       Corporate Park as presently contemplated
                                       by Landlord). Tenant acknowledges that
                                       Exhibit A-1 is intended to be used only
                                       for illustrative purposes and nothing
                                       contained therein shall constitute a
                                       representation or warranty by Landlord.

Land:                                  Approximately 9.34 acre parcel of land
                                       shown on the Site Plan attached hereto as
                                       Exhibit A-1.

Building:                              An office/manufacturing/warehouse
                                       building located on the Land and
                                       containing approximately 165,000 rentable
                                       square feet.

Premises:                              Approximately 109,906 rentable square
                                       feet located within the Building as shown
                                       on Exhibit A-2.

<PAGE>

Premises Address:                      Southshore Corporate Park - Building A
     Street:                           18870 NE Riverside Parkway
     City and State:                   Gresham, Oregon  97230

Term:                                  One Hundred Twenty (120) months

Estimated Possession Date:             November 1, 2000

Estimated Commencement Date:           November 1, 2000

Monthly Base Rent:

<TABLE>
<CAPTION>
                            First       Second
             Shell Base   Allowance    Allowance   Total Base
  Months        Rent         Rent        Rent*        Rent
-------------------------------------------------------------
<S>          <C>          <C>          <C>         <C>
  1 - 24     $36,269.00   $5,343.00    $11,535.00  $53,147.00
-------------------------------------------------------------
 25 - 48     $38,487.00   $5,343.00    $11,535.00  $55,365.00
-------------------------------------------------------------
 49 - 72     $40,821.00   $5,343.00    $11,535.00  $57,699.00
-------------------------------------------------------------
 73 - 96     $43,307.00   $5,343.00    $11,535.00  $60,185.00
-------------------------------------------------------------
 97 - 120    $45,944.00   $5,343.00    $11,535.00  $62,822.00
-------------------------------------------------------------
 121-144+    $48,742.00   $       0    $        0  $48,742.00
-------------------------------------------------------------
 145-168+    $51,710.00   $       0    $        0  $51,710.00
-------------------------------------------------------------
 169-180+    $54,859.00   $       0    $        0  $54,859.00
-------------------------------------------------------------
</TABLE>

                  * Subject to prepayment pursuant to Section 9(d) of the Work
                  Letter

                  + Subject to the provisions of the Option to Extend set forth
                  in Section 19 of the Addendum to Lease

Tenant's Share of Building             6.61%
Operating Expenses:

Tenant's Share of Project              24.50%
Operating Expenses:

Security Deposit:                      $106,294.00, subject to adjustment
                                       pursuant to Section 3.3

Broker:                                Landlord's Broker:  CB Richard Ellis
                                       Tenant's Broker: Macadam Forbes, Inc.

Lease Year:                            Shall refer to each twelve (12) month
                                       period during the Term commencing on the
                                       Commencement Date.

<PAGE>

Permitted Uses:                        The manufacturing, warehousing and
                                       distribution of mini-clean room
                                       environment equipment and other related
                                       activities, together with collateral
                                       office space, all to the extent
                                       consistent with the character of the
                                       Project as a first-class industrial
                                       project. No other uses shall be permitted
                                       without the prior written consent of
                                       Landlord, which may be given or withheld
                                       in Landlord's sole and absolute
                                       discretion. In no event shall any use of
                                       the Premises violate the Prohibited Uses
                                       set forth in Exhibit E attached hereto or
                                       the terms of the CC&Rs (defined in
                                       Section 11 of the Lease) and all uses of
                                       the Premises shall at all times comply
                                       with and be consistent with all of the
                                       provisions of this Lease (including,
                                       without limitation, the Rules and
                                       Regulations attached hereto as Exhibit F)
                                       and applicable law.

Guarantors:                            Yaskawa Electric America, Inc.

Parking Spaces:                        One hundred thirty-seven (137) standard
                                       and four (4) handicap unreserved parking
                                       spaces, subject to the terms of Section
                                       1.4

Rentable Square Feet of                Shall mean (a) the total square footage
Premises:                              of the Premises, measured from the
                                       outside of the exterior walls of the
                                       Building and to the center of any
                                       demising walls separating the Premises
                                       from other premises in the Building, plus
                                       (b) a pro rata share of any common
                                       utility rooms and/or electrical vaults
                                       located in the Building that do not
                                       exclusively serve the Premises or other
                                       premises leased to other tenants of the
                                       Building (which pro rata share shall be
                                       the same percentage as Tenant's Share of
                                       Building Operating Expenses).

Rentable Square Feet of                Shall mean the total square footage of
Building:                              the Building, measured from the outside
                                       of the exterior walls of the Building to
                                       the center thereof.

Option to Extend:                      One (1) five (5) year Option to Extend
                                       in accordance with Section 19 in the
                                       Addendum to Lease.

ADDENDUM

EXHIBITS

A-1      Site Plan
A-2      Premises
B        Work Letter
C        Commencement Date Memorandum
D        Insurance Certificate
E        Prohibited Uses
F        Rules and Regulations
G        Requirements for Improvements or Alterations by Tenant
H        Estoppel Certificate
I        Subordination, Non-Disturbance and Attornment Agreement
J        Arbitration Procedures
K        Synetics Parking Spaces

<PAGE>

The Basic Lease Information set forth above and the Addendum and Exhibits
attached hereto are incorporated into and made a part of the following Lease.
Each reference in this Lease to any of the Basic Lease Information shall mean
the respective information above and shall be construed to incorporate all of
the terms provided under the particular Lease paragraph pertaining to such
information. In the event of any conflict between the Basic Lease Information
and the provisions of the Lease, the latter shall control.

                (  TA  )                        (  KN  )
                 ------                         ------
      LANDLORD   initial          AND TENANT    initial           AGREE.

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                                                                    PAGE
                                                                                                                    ----
<S>                                                                                                                 <C>
1.       PREMISES...............................................................................................      1
         1.1      Premises......................................................................................      1
         1.2      Common Area...................................................................................      1
         1.3      Reserved Rights...............................................................................      1
         1.4      Parking.......................................................................................      1

2.       TERM...................................................................................................      2
         2.1      Commencement Date.............................................................................      2
         2.2      Possession....................................................................................      2
         2.3      Early Entry...................................................................................      2

3.       RENT...................................................................................................      3
         3.1      Rent..........................................................................................      3
         3.2      Late Charge and Interest......................................................................      3
         3.3      Security Deposit..............................................................................      3

4.       UTILITIES..............................................................................................      4

5.       TAXES..................................................................................................      4
         5.1      Real Property Taxes...........................................................................      4
         5.2      Definition of Real Property Taxes.............................................................      4
         5.3      Personal Property Taxes.......................................................................      4

6.       OPERATING EXPENSES.....................................................................................      5
         6.1      Operating Expenses............................................................................      5
         6.2      Definition of Operating Expenses..............................................................      5

7.       ESTIMATED EXPENSES.....................................................................................      6
         7.1      Payment.......................................................................................      6
         7.2      Adjustment....................................................................................      6
         7.3      Audit Right...................................................................................      6

8.       INSURANCE..............................................................................................      6
         8.1      Landlord......................................................................................      6
         8.2      Tenant........................................................................................      7
         8.3      General.......................................................................................      7
         8.4      Indemnity.....................................................................................      8
         8.5      Exemption of Landlord from Liability..........................................................      8

9.       REPAIRS AND MAINTENANCE................................................................................      9
         9.1      Tenant........................................................................................      9
         9.2      Landlord......................................................................................      9
         9.3      Landlord's Failure to Perform.................................................................     10

10.      ALTERATIONS............................................................................................     10
         10.1     Trade Fixtures; Alterations...................................................................     10
         10.2     Damage; Removal...............................................................................     11
         10.3     Liens.........................................................................................     11
         10.4     Standard of Work..............................................................................     11

11.      USE....................................................................................................     11

12.      ENVIRONMENTAL MATTERS..................................................................................     12
         12.1     Hazardous Materials...........................................................................     12
         12.2     Tenant's Indemnification......................................................................     13
         12.3     Pre-existing Conditions and Indemnification...................................................     13
</TABLE>

                                      -i-

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                    PAGE
                                                                                                                    ----
<S>                                                                                                                 <C>
13.      DAMAGE AND DESTRUCTION.................................................................................     14
         13.1     Casualty......................................................................................     14
         13.2     Tenant's Fault................................................................................     15
         13.3     Uninsured Casualty............................................................................     15
         13.4     Waiver........................................................................................     16

14.      EMINENT DOMAIN.........................................................................................     16
         14.1     Total Condemnation............................................................................     16
         14.2     Partial Condemnation..........................................................................     16
         14.3     Award.........................................................................................     16
         14.4     Temporary Condemnation........................................................................     16

15.      DEFAULT................................................................................................     16
         15.1     Events of Defaults............................................................................     16
         15.2     Remedies......................................................................................     17
         15.3     Cumulative....................................................................................     18

16.      ASSIGNMENT AND SUBLETTING..............................................................................     18

17.      ESTOPPEL, ATTORNMENT AND SUBORDINATION.................................................................     19
         17.1     Estoppel......................................................................................     19
         17.2     Subordination.................................................................................     19
         17.3     Attornment....................................................................................     19

18.      MISCELLANEOUS..........................................................................................     20
         18.1     General.......................................................................................     20
         18.2     Signs.........................................................................................     21
         18.3     Waiver........................................................................................     21
         18.4     Financial Statements..........................................................................     21
         18.5     Limitation of Liability.......................................................................     21
         18.6     Notices.......................................................................................     21
         18.7     Brokerage Commission..........................................................................     21
         18.8     Authorization.................................................................................     22
         18.9     Holding Over; Surrender.......................................................................     22
         18.10    Joint and Several.............................................................................     22
         18.11    Covenants and Conditions......................................................................     22
         18.12    Auctions......................................................................................     22
         18.13    Consents......................................................................................     22
         18.14    Force Majeure.................................................................................     22
         18.15    Mortgagee Protection..........................................................................     23
         18.16    Guarantors....................................................................................     23
         18.17    Hazardous Substance Disclosure................................................................     23
         18.18    ADA Compliance................................................................................     23
         18.19    Addenda.......................................................................................     24
</TABLE>

                                      -ii-

<PAGE>

1.       PREMISES

         1.1      Premises. Landlord hereby leases to Tenant that portion of the
Building as shown on Exhibit A-2 attached hereto (the "Premises"), but excluding
the Common Area (defined below) and any other portion of the Building, the Land
and/or the Project. Tenant has determined that the Premises are acceptable for
Tenant's use and Tenant acknowledges that, except as set forth in the Work
Letter attached hereto as Exhibit B (the "Work Letter"), neither Landlord nor
any broker or agent has made any representations or warranties in connection
with the physical condition of the Premises or their fitness for Tenant's use
upon which Tenant has relied directly or indirectly for any purpose. By taking
possession of the Premises, Tenant accepts the Premises "AS-IS" and waives all
claims of defect in the Premises, except as set forth herein or in the Work
Letter. Tenant shall be responsible for confirming the street address of
Premises with the City.

         1.2      Common Area. Tenant may, subject to rules made by Landlord,
use the following areas on the Land or within the Building ("Building Common
Area") in common with Landlord and other tenants of the Building: hallways,
stairwells, entranceways, restroom facilities, refuse facilities, landscaped
areas, driveways necessary for access to the Premises, parking spaces and other
common facilities located in the Building and/or on the Land designated by
Landlord from time to time for the common use of all tenants of the Building.
Tenant may, subject to the CC&Rs (as defined in Section 11 below) and any rules
or regulations made by Landlord, use the following areas of the Project
("Project Common Area") in common with Landlord, tenants of the Building and/or
other owners or lawful users of the Project: refuse facilities, landscaped
areas, roads, driveways necessary for access to the Premises, parking spaces,
retention basins and other common facilities designated by Landlord from time to
time for the common use of all tenants and owners of the Project. The Building
Common Area and the Project Common Area are collectively referred to herein as
the "Common Area".

         1.3      Reserved Rights. Landlord reserves the right to enter the
Premises for any reason upon reasonable notice to Tenant (or without notice in
case of an emergency) and/or to undertake the following all without abatement of
rent or liability to Tenant: inspect the Premises and/or the performance by
Tenant of the terms and conditions hereof; make such alterations, repairs,
improvements or additions to the Premises as required or permitted hereunder;
change boundary lines of the Land so long as such change does not materially and
adversely impact Tenant's use of the parking area and/or access to the Premises;
install, use, maintain, repair, alter, relocate or replace any pipes, ducts,
conduits, wires, equipment and other facilities (including, without limitation,
cabling and conduit for telecommunications facilities of any kind) in the Common
Area or the Building; install, maintain and operate conduit cabling within the
utility and/or conduit ducts and risers within the Building, as well as, grant
lease, license or use rights to third parties, to utilize the foregoing grant
easements or licenses on the Land and/or the Project; dedicate for public use
portions of the Land and/or the Project and record covenants, conditions and
restrictions affecting the Land and/or the Project and/or amendments to existing
CC&Rs (as defined below in Section 11 below) which do not unreasonably interfere
with Tenant's use of the Premises or impose additional material monetary
obligations on Tenant; change the name of the Building and/or the Project; affix
reasonable signs and displays on the Building and/or the Land; and, during the
last six (6) months of the Term, place signs for the rental of, and show the
Premises to prospective tenants.

         1.4      Parking. So long as this Lease is in effect and provided
Tenant is not in default hereunder, Landlord grants to Tenant and Tenant's
customers, suppliers, employees and invitees ("Tenant's Authorized Users") a
non-exclusive license to use up to one hundred thirty-seven (137) standard
parking spaces and four (4) handicap parking spaces (for a total of one hundred
forty-one (141) parking spaces) in the location shown on Exhibit K attached
hereto. All visitor parking will be on a non-exclusive, in common basis with all
other visitors and guests of the Project. Tenant will not use or allow any of
Tenant's Authorized Users to use any parking spaces which have been specifically
assigned by Landlord for other uses such as visitor parking or which have been
designated by any governmental entity as being restricted to certain uses.
Landlord may assign any unreserved and unassigned parking spaces and/or make all
or any portion of such spaces reserved, if Landlord reasonably determines that
it is necessary for orderly and efficient parking or for any other reasonable
reason. Tenant and Tenant's Authorized Users shall comply with all rules and
regulations regarding parking set forth in Exhibit F attached hereto and Tenant
agrees to cause Tenant's Authorized Users to comply with such rules and
regulations. Landlord reserves the right from time to time to modify and/or
adopt such other reasonable and non-discriminatory rules and regulations for the
parking

<PAGE>

facilities as it deems reasonably necessary for the operation of the parking
facilities, but in no event shall Landlord be entitled to charge fees for
parking without the prior written consent of Tenant, which is not to be
unreasonably withheld or delayed. Tenant may, at Tenant's sole cost and expense,
provide for the striping of additional parking spaces in the paved areas
adjacent to Tenant's loading docks and the fifty foot (50') wide concrete dock
apron, provided that (i) the addition of such spaces in the loading dock and
apron areas is in compliance with all applicable laws and (ii) any and all costs
associated with providing such parking spaces in the loading dock areas shall be
at Tenant's sole cost and expense, including, without limitation, any
landscaping requirements imposed by the City.

2.       TERM

         2.1      Commencement Date. The Term of the Lease shall commence
("Commencement Date") on the first day of the first full month following the
date on which Landlord delivers to Tenant the Premises Substantially Complete
(as hereinafter defined) except that if Landlord delivers the Premises to Tenant
on the first day of a month, that date shall be the Commencement Date, and the
Lease shall continue in full force and effect for the period of time specified
as the Term or until this Lease is terminated as otherwise provided herein. The
Premises shall be deemed to be "Substantially Complete" on the earliest of the
date on which: (1) Tenant commences business operations in the Premises, or (2)
a temporary certificate of occupancy (or a reasonably substantial equivalent
such as a signoff from a building inspector) is issued for the Premises, or
would have been issued for the Premises but for the completion of work on or to
the Premises to be performed by Tenant (for example, Tenant's completion of its
clean room and fabrication powder coat equipment). Landlord shall arrange for
the construction of certain Tenant Improvements (as defined in the Work Letter),
if any, in accordance with and subject to the terms of the Work Letter attached
hereto as Exhibit B. Tenant shall, upon demand after delivery of the Premises to
Tenant, execute and deliver to Landlord a Commencement Date Memorandum in the
form attached hereto as Exhibit C acknowledging (i) the Commencement Date, (ii)
the final square footage of the Premises and (iii) Tenant's acceptance of the
Premises. If the Premises are not Substantially Complete on the Estimated
Commencement Date as extended by Force Majeure events and Tenant Delays (as
defined in the Lease or Work Letter, if any), this Lease shall remain in effect,
Landlord shall not be subject to any liability, and the Commencement Date shall
be delayed until the date the Premises are Substantially Complete.

         2.2      Possession. Tenant's possession of the Premises during the
period of time, if any, from the date on which Landlord delivers possession of
the Premises to Tenant Substantially Complete (the "Possession Date") to the
Commencement Date, shall be subject to all the provisions of this Lease and
shall not advance the expiration date. Rent shall be paid for such period at the
rate stated in the Basic Lease Information, prorated on the basis of a thirty
(30) day month, and shall be due and payable to Landlord on or before the
Commencement Date. Tenant shall upon demand acknowledge in writing the
Possession Date in the form attached hereto as Exhibit C.

         2.3      Early Entry. Subject to the following provisions of this
Section 2.3, Tenant shall have the right to enter the Premises no earlier than
fifteen (15) days prior to the Commencement Date to install phone systems,
furniture, fixtures and equipment, etc. and such early entry for such purposes
shall not constitute occupancy for operation of Tenant's business and shall not
trigger the Possession Date or the Commencement Date. Tenant agrees (i) any such
early entry by Tenant shall be at Tenant's sole risk, (ii) Tenant shall not
interfere with Landlord or Landlord's contractors completing work within the
Premises or cause any labor difficulties; Tenant, together with its employees,
agents and independent contractors will be subject to and will work under the
direction of Landlord's contractor, (iii) Tenant shall comply with and be bound
by all provisions of this Lease during the period of any such early entry except
for the payment of Rent, (iv) prior to entry upon the Premises by Tenant, Tenant
agrees to pay for and provide to Landlord certificates evidencing the existence
and amounts of liability insurance carried by Tenant, which coverage must comply
with the provisions of this Lease relating to insurance, (v) Tenant and its
agents and contractors agree to comply with all applicable laws, regulations,
permits and other approvals required to perform its work during the early entry
on the Premises, and (vi) Tenant agrees to indemnify, protect, defend and save
Landlord and the Premises harmless from and against any and all liens,
liabilities, losses, damages, costs, expenses, demands, actions, causes of
action and claims (including, without limitation, attorneys' fees and legal
costs) arising out of the early entry, use, construction, or occupancy of the
Premises by Tenant or its agents, employees or contractors.

                                      -2-

<PAGE>

3.       RENT

         3.1      Rent. Tenant shall pay to Landlord, at Landlord's Address for
Payment of Rent designated in the Basic Lease Information, or at such other
address as Landlord may from time to time designate in writing to Tenant for the
payment of Rent, the Base Rent, without notice, demand, offset or deduction, in
advance, on the first day of each calendar month. Landlord shall have no
obligation to notify Tenant of any increase in Rent and Tenant's obligation to
pay all Rent (and any increases) when due shall not be modified or altered by
such lack of notice from Landlord. It is intended that this Lease be a "triple
net lease," and that the Rent to be paid hereunder by Tenant will be received by
Landlord without any deduction or offset whatsoever by Tenant, foreseeable or
unforeseeable. Except as expressly provided to the contrary in this Lease,
Landlord shall not be required to make any expenditure, incur any obligation, or
incur any liability of any kind whatsoever in connection with this Lease or the
ownership, construction, maintenance, operation or repair of the Premises or the
Project. Upon the execution of this Lease, Tenant shall pay to Landlord the
first month's Base Rent. If the Term commences (or ends) on a date other than
the first (or last) day of a month, Base Rent shall be prorated on the basis of
a thirty (30) day month. All sums other than Base Rent which Tenant is obligated
to pay under this Lease shall be deemed to be additional rent due hereunder
("Additional Rent"), whether or not such sums are designated Additional Rent
and, together with the Base Rent, shall be due and payable to Landlord
commencing on the Possession Date. The term "Rent" means the Base Rent and all
Additional Rent payable hereunder.

         3.2      Late Charge and Interest. The late payment of any Rent will
cause Landlord to incur additional costs, including administration and
collection costs and processing and accounting expenses and increased debt
service ("Delinquency Costs"). If Landlord has not received any installment of
Rent within five (5) days after such amount is due, Tenant shall pay a late
charge of five percent (5%) of the delinquent amount, which is agreed to
represent a reasonable estimate of the Delinquency Costs incurred by Landlord.
In addition, all such delinquent amounts shall bear interest from the date such
amount was due until paid in full at a rate per annum ("Applicable Interest
Rate") equal to the lesser of (a) the maximum interest rate permitted by law or
(b) five percent (5%) above the rate publicly announced by Bank of America, N.A.
(or if Bank of America, N.A. ceases to exist, the largest bank then
headquartered in the State of California) ("Bank") as its "Reference Rate". If
the use of the announced Reference Rate is discontinued by the Bank, then the
term Reference Rate shall mean the announced rate charged by the Bank which is,
from time to time, substituted for the Reference Rate. Landlord and Tenant
recognize that the damage which Landlord shall suffer as a result of Tenant's
failure to pay such amounts is difficult to ascertain and said late charge and
interest are the best estimate of the damage which Landlord shall suffer in the
event of late payment. If a late charge becomes payable for any three (3)
installments of Rent within any twelve (12) month period, then the Rent shall
automatically become due and payable quarterly in advance.

         3.3      Security Deposit. Upon the execution of this Lease, Tenant
shall pay to Landlord the Security Deposit. The Security Deposit shall secure
the full and faithful performance of each provision of this Lease to be
performed by Tenant. Landlord shall not be required to pay interest on the
Security Deposit or to keep the Security Deposit separate from Landlord's own
funds. If Tenant fails to perform fully and timely all or any of Tenant's
covenants and obligations hereunder, Landlord may, but without obligation, apply
all or any portion of the Security Deposit toward fulfillment of Tenant's
unperformed covenants and/or obligations. If Landlord does so apply any portion
of the Security Deposit, Tenant shall immediately pay Landlord sufficient cash
to restore the Security Deposit to the amount of the then current Base Rent per
month. Upon any increase in Base Rent, Landlord may require the Security Deposit
to be increased by the amount of the increase in Base Rent per month. After
Tenant vacates the Premises, upon the expiration or sooner termination of this
Lease, if Tenant is not then in default, Landlord shall return to Tenant any
unapplied balance of the Security Deposit. Should the Permitted Use be amended
(in Landlord's sole and absolute discretion) to accommodate a change in the
business of Tenant or to accommodate a subtenant or assignee approved by
Landlord, Landlord shall have the right to increase the Security Deposit to the
extent necessary, in Landlord's reasonable judgment, to account for any
increased risk to the Premises or increased wear and tear that the Premises may
suffer as a result thereof. If a change in control of Tenant occurs during this
Lease and following such change the financial condition of Tenant is, in
Landlord's reasonable judgment, reduced, Tenant shall deposit such additional
monies with Landlord as shall be sufficient to cause the Security Deposit to be
at a commercially reasonable level based on said change in financial condition.
Provided this Lease and the Guaranty remain in full force and effect and that
Tenant has not at any time been in default under the Lease, Landlord shall
return to Tenant fifty percent (50%) of the initial Security Deposit upon the
first day of the sixty-first (61st) month of the Lease Term.

                                      -3-

<PAGE>

4.       UTILITIES. Tenant shall pay all charges for heat, water, gas,
electricity, telephone and any other utilities used on or provided to the
Premises. Landlord shall not be liable to Tenant for interruption in or
curtailment of any utility service, nor shall any such interruption or
curtailment constitute constructive eviction or grounds for rental abatement. In
the event the Premises is not separately metered, Tenant shall have the option,
subject to Landlord's prior written consent and the terms of this Lease, to
cause the Premises to be separately metered at Tenant's cost and expense. If
Tenant does not elect to cause the Premises to be separately metered, Tenant
shall pay a reasonable proration of utilities, as determined by Landlord.

5.       TAXES

         5.1      Real Property Taxes. Tenant shall pay to Landlord Tenant's
Share of Real Property Taxes (as defined in Section 5.2) as a part of Operating
Expenses for each full or partial calendar year during the Lease Term in
accordance with the terms and provisions of Section 7.1 below.

         5.2      Definition of Real Property Taxes. "Real Property Taxes" shall
be the sum of the following: all real property taxes, assessments, supplementary
taxes, escape taxes, possessory-interest taxes, business or license taxes or
fees, service payments in lieu of such taxes or fees, annual or periodic license
or use fees, excises, transit and traffic charges, housing fund assessments,
open space charges, childcare fees, school, sewer and parking fees or any other
assessments, levies, fees, exactions or charges, general and special, ordinary
and extraordinary, unforeseen as well as foreseen (including fees "in-lieu" of
any such tax or assessment) which are assessed, levied, charged, conferred or
imposed by any public authority upon the Land, the Building or any other
improvements located on the Land and/or Project (or any real property comprising
any portion thereof) or its operations, together with all taxes, assessments or
other fees imposed by any public authority upon or measured by any Rent or other
charges payable hereunder, including any gross receipts tax or excise tax levied
by any governmental authority with respect to receipt of rental income, or upon,
with respect to or by reason of the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises or
any portion thereof, or documentary transfer taxes upon this transaction or any
document to which Tenant is a party creating or transferring an interest in the
Premises, together with any tax imposed in substitution, partially or totally,
of any tax previously included within the aforesaid definition or any additional
tax the nature of which was previously included within the aforesaid definition,
together with any and all costs and expenses (including, without limitation,
attorneys', administrative and expert witness fees and costs) of challenging any
of the foregoing or seeking the reduction in or abatement, redemption or return
of any of the foregoing, but only to the extent of any such reduction,
abatement, redemption or return. All references to Real Property Taxes during a
particular year shall be deemed to refer to taxes accrued during such year,
including supplemental tax bills regardless of when they are actually assessed
and without regard to when such taxes are payable. Real Property Taxes shall
expressly include One Hundred Percent (100%) of any increase or supplemental
assessments accruing as a result of the construction of the Building, or any
other improvements located on the Land. In addition to Tenant's Share of Real
Property Taxes (paid as a part of Operating Expenses), Tenant shall pay to
Landlord One Hundred Percent (100%) of any increase in the assessed value of the
Land directly attributable to the value of any Tenant Improvements (as defined
in the Work Letter, if any). The obligation of Tenant to pay Real Property Taxes
(including any supplemental taxes) for the last full and/or partial year(s) of
the Term shall survive the expiration or early termination of this Lease. In no
event shall Tenant or any Tenant Party (as defined in Section 12.1) be entitled
to file any property tax assessment appeal. Nothing contained in this Lease
shall require Tenant to pay any franchise, corporate, estate or inheritance tax
of Landlord, or any income, profits or revenue tax or charge upon the net income
of Landlord. Subject to the terms of this Section 5.2, Real Property Taxes for
partial years, if any, falling within the Term shall be prorated.

         5.3      Personal Property Taxes. Prior to delinquency, Tenant shall
pay all taxes and assessments levied upon trade fixtures, alterations,
additions, improvements, inventories and other personal property located and/or
installed on the Premises by Tenant; and Tenant shall provide Landlord copies of
receipts for payment of all such taxes and assessments. To the extent any such
taxes are not separately assessed or billed to Tenant, Tenant shall pay the
amount thereof as invoiced by Landlord.

                                      -4-

<PAGE>

6.       OPERATING EXPENSES

         6.1      Operating Expenses. Tenant shall pay to Landlord Tenant's
Share of the Building Operating Expenses and Tenant's Share of Project Operating
Expenses for each full or partial calendar year during the Lease Term, as
provided in Section 7.1 below.

         6.2      Definition of Operating Expenses. "Operating Expenses" shall
mean collectively the "Building Operating Expenses" and the "Project Operating
Expenses" as defined in this Section 6.2.

                  6.2.1    "Building Operating Expenses" means the total costs
and expenses incurred by Landlord in the ownership, operation, maintenance,
repair and management of the Building, the Land and/or the Building Common Area,
including, but not limited to: (a) repair, replacement, maintenance, utility
costs and landscaping of the Building Common Area, including, but not limited
to, any and all costs of maintenance, repair and replacement of all parking
areas (including bumpers, sweeping, striping and slurry coating), common
driveways, loading and unloading areas, trash areas, outdoor lighting,
sidewalks, walkways, landscaping, irrigation systems, fences and gates and other
costs which are allocable to the Building and/or the Land including any costs
under the terms of any CC&Rs affecting the real property, (b) non-structural
maintenance, repair and replacement of the roof (and roof membrane), skylights
and exterior walls of the Premises (including painting); (c) insurance
deductibles and the costs relating to the insurance maintained by Landlord as
described in Section 8.1 below, including, without limitation, Landlord's cost
of any deductible or self insurance retention; (d) maintenance contracts for,
and the repair and replacement of, the heating, ventilation and air-conditioning
(HVAC) systems and elevators, if any; (e) maintenance, repair, replacement,
monitoring and operation of the fire/life safety and sprinkler system (to the
extent Landlord is obligated to do so pursuant to Section 9.2); (f) trash
collection; (g) capital improvements or capital replacements (excluding the roof
structure) made to or capital assets acquired for the Building or the Land after
the Commencement Date that in Landlord's good faith judgment are intended to
reduce Building Operating Expenses or are reasonably necessary for the health
and safety of the occupants of the Building or are required under any
governmental law or regulation, which capital costs, or an allocable portion
thereof, shall be amortized over the period determined by Landlord, together
with interest on the unamortized balance at the Applicable Interest Rate, all in
accordance with "generally accepted accounting principles" ("GAAP") consistently
applied; (h) commercially reasonable reserves set aside for maintenance and
repair; (i) Real Property Taxes attributable to the Land; and (j) any other
costs, except as noted in this Lease, incurred by Landlord related to the
Building and/or the Land and not related to the Project as a whole.
Notwithstanding any provision to the contrary contained in this Section 6.2.1,
Tenant shall pay to Landlord an amount equal to three percent (3%) of Rent for
the costs and fees incurred by Landlord in connection with the management of
this Lease, the Premises, the Building and/or the Land including the cost of
those services which are customarily performed by a property management services
company, whether performed internally or through an outside management company.
Building Operating Expenses shall not include (i) replacement of or structural
repairs to the roof, slab or the exterior walls; (ii) repairs to the extent
covered by insurance proceeds, or paid by Tenant or other third parties; (iii)
alterations solely attributable to tenants of the Project other than Tenant;
(iv) marketing and legal expenses; (v) any cost or expense associated with
compliance with any laws, ordinances, rules or regulations regarding any
condition existing in the Building or on the Land if such condition existed
prior to the Commencement Date, including, but not limited to removal of any and
all asbestos and other toxic and hazardous substances located in the Premises;
and (vi) any costs or expenses being charged directly and solely to other
tenants in the Building (other than pursuant to the operating expenses clauses
of the lease(s) of such other tenant(s)).

                  6.2.2    Project Operating Expenses. "Project Operating
Expenses" shall include all reasonable and necessary expenses incurred by
Landlord in the ownership, operation, maintenance, repair and management of the
Project Common Area, including, without limitation, Real Property Taxes
attributable to the Project Common Area; provided, however that all improvements
or replacements made to or assets acquired for the Project after the
Commencement Date that are reasonably expected to reduce Project Operating
Expenses or are reasonably necessary for the health and safety of the occupants
of the Project or required under any government of law or regulation, which
costs, or an allocable portion thereof, shall be amortized over the period
determined by Landlord, together with interest on the unamortized balance at the
Applicable Interest Rate actually paid to third party lenders, all in accordance
with GAAP consistently applied.

                                      -5-

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7.       ESTIMATED EXPENSES

         7.1      Payment. "Estimated Expenses" for any particular year shall
mean Landlord's estimate of Operating Expenses for a calendar year. Tenant shall
pay Tenant's Share of the Estimated Expenses with installments of Base Rent in
monthly installments of one-twelfth (1/12th) thereof on the first day of each
calendar month during such year. If at any time Landlord determines that
Operating Expenses are projected to vary from the then Estimated Expenses,
Landlord may, by notice to Tenant, revise such Estimated Expenses, and Tenant's
monthly installments for the remainder of such year shall be adjusted so that by
the end of such calendar year Tenant has paid to Landlord Tenant's Share of the
revised Estimated Expenses for such year.

         7.2      Adjustment. "Operating Expenses Adjustment" (or "Adjustment")
shall mean the difference between Tenant's Share of Estimated Expenses and
Tenant's Share of Operating Expenses for any calendar year. After the end of
each calendar year, Landlord shall deliver to Tenant a statement of Tenant's
Share of Operating Expenses for such calendar year, accompanied by a computation
in sufficient detail of the Adjustment. If Tenant's payments are less than
Tenant's Share, then Tenant shall pay the difference within twenty (20) days
after receipt of such statement. Tenant's obligation to pay such amount shall
survive the expiration or termination of this Lease. If Tenant's payments exceed
Tenant's Share, then (provided that Tenant is not in material default), Landlord
shall credit such excess amount to future installments of Tenant's Share for the
next calendar year. If Tenant is in material default, Landlord may, but shall
not be required to, credit such amount to Rent arrearages.

         7.3      Audit Right. In the event of any dispute as to the amount of
Tenant's Share of Operating Expenses, Tenant or an accounting firm selected by
Tenant and reasonably satisfactory to Landlord will have the right, by prior
written notice ("Audit Notice") given within thirty (30) days ("Audit Period")
following receipt of an actual statement of Operating Expenses ("Actual
Statement") and at reasonable times during normal business hours, to audit
Landlord's accounting records with respect to Operating Expenses relative to the
year to which such Actual Statement relates at the office of Landlord at which
records are kept or, at Landlord's election, the office of Landlord's property
manager (if any). In no event will Landlord or its property manager be required
to (i) photocopy any accounting records or other items or contracts, (ii) create
any ledgers or schedules not already in existence, (iii) incur any costs or
expenses relative to such inspection, or (iv) perform any other tasks other than
making available such accounting records as aforesaid. Neither Tenant nor its
auditor may leave the office of Landlord with originals of any materials
supplied by Landlord. Tenant must pay Tenant's Share of Operating Expenses when
due pursuant to the terms of this Lease and may not withhold payment of
Operating Expenses or any other rent pending results of the audit or during a
dispute regarding Operating Expenses. The audit must be completed within thirty
(30) days of the date of Tenant's Audit Notice and the results of such audit
shall be delivered to Landlord within forty-five (45) days of the date of
Tenant's Audit Notice. If Tenant does not comply with any of the aforementioned
time frames, then such Actual Statement will be conclusively binding on Tenant.
If such audit or review correctly reveals that Landlord has overcharged Tenant,
then within thirty (30) days after the results of such audit are made available
to Landlord, the amount of such overcharge shall be deducted from the
installments of Tenant's Share of Operating Expenses next becoming due. If the
audit reveals that Tenant was undercharged, then within thirty (30) days after
the results of the audit are made available to Tenant, Tenant agrees to
reimburse Landlord the amount of such undercharge. Tenant agrees to pay the cost
of such audit, provided that if the audit reveals that Landlord's determination
of Tenant's Share of Operating Expenses as set forth in the relevant Actual
Statement was in error in Landlord's favor by more than five percent (5%) of the
amount charged by Landlord to Tenant pursuant to such Actual Statement, then
Landlord agrees to pay the reasonable, third-party cost of such audit incurred
by Tenant. To the extent Landlord must pay the cost of such audit, such cost
shall not exceed a reasonable hourly charge for a reasonable amount of hours
spent by such third-party in connection with the audit. Tenant agrees to keep
the results of the audit confidential and will cause its agents, employees and
contractors to keep such results confidential. To that end, Landlord may require
Tenant and its auditor to execute a confidentiality agreement provided by
Landlord.

8.       INSURANCE

         8.1      Landlord. Landlord shall maintain insurance through individual
or blanket policies insuring the Building against fire and extended coverage
(including, if Landlord elects, "all risk" coverage, earthquake/volcanic action,
flood and/or surface water insurance) for the full replacement cost of the
Building, with deductibles and the form and endorsements of such coverage as
selected by Landlord, together with rental abatement insurance against

                                      -6-

<PAGE>

loss of Rent in an amount equal to the amount of Rent for a period of at least
twelve (12) months commencing on the date of loss. Landlord may also carry such
other insurance as is commercially reasonable (when compared to insurance
customarily carried by sophisticated, institutional landlords for the protection
of such landlords and the production of properties similar to the Premises),
including, without limitation, liability insurance in such amounts and on such
terms as Landlord shall determine. Tenant shall pay to Landlord, as a portion of
the Operating Expenses, the costs of the insurance coverages described herein,
including, without limitation, Landlord's cost of any self-insurance deductible
or retention.

         8.2      Tenant. Tenant shall, at Tenant's expense, obtain and keep in
force at all times the following insurance:

                  8.2.1    Commercial General Liability Insurance (Occurrence
Form). A policy of commercial general liability insurance (occurrence form)
having a combined single limit of not less than Two Million Dollars ($2,000,000)
per occurrence and Two Million Dollars ($2,000,000) aggregate per location if
Tenant has multiple locations, providing coverage for, among other things,
blanket contractual liability, premises, products/completed operations with an
"Additional Insured-Managers or Lessors of Premises Endorsement" and containing
the "Amendment of the Pollution Exclusion Endorsement" for damage caused by
heat, smoke or fumes from a hostile fire, and personal and advertising injury
coverage, with deletion of the exclusion for operations within fifty (50) feet
of a railroad track (railroad protective liability), if applicable, and if
applicable, and, if necessary, Tenant shall provide for restoration of the
aggregate limit, and provided that the policy shall not contain any
intra-insured exclusions as between insured persons or organizations, but shall
include coverage for liability assumed under this Lease as an "insured contract"
for the performance of Tenant's indemnity obligations under this Lease;

                  8.2.2    Automobile Liability Insurance. Business automobile
liability insurance having a combined single limit of not less than Two Million
Dollars ($2,000,000) per occurrence and insuring Tenant against liability for
claims arising out of ownership, maintenance, or use of any owned, hired or
non-owned automobiles;

                  8.2.3    Workers' Compensation and Employer's Liability
Insurance. Workers' compensation insurance having limits not less than those
required by state statute and federal statute, if applicable, and covering all
persons employed by Tenant in the conduct of its operations on the Premises
(including the all states endorsement and, if applicable, the volunteers
endorsement), together with employer's liability insurance coverage in the
amount of at least One Million Dollars ($1,000,000);

                  8.2.4    Property Insurance. "All risk" property insurance
including boiler and machinery comprehensive form, if applicable, covering
damage to or loss of any of Tenant's personal property, fixtures, equipment and
alterations, including electronic data processing equipment (collectively
"Tenant's Property") (and coverage for the full replacement cost thereof
including business interruption of Tenant), together with, if the property of
Tenant's invitees is to be kept in the Premises, warehouser's legal liability or
bailee customers insurance for the full replacement cost of the property
belonging to invitees and located in the Premises; and

                  8.2.5    Business Interruption. Loss of income and extra
expense insurance in amounts as will reimburse Tenant for direct or indirect
loss of earnings attributable to all peril commonly insured against by prudent
lessees in the business of Tenant or attributable to prevention of access to the
Premises as a result of such perils.

         8.3      General

                  8.3.1    Insurance Companies. Insurance required to be
maintained by Tenant shall be written by companies licensed to do business in
the state in which the Premises are located and having a "General Policyholders
Rating" of at least "A-/VIII" (or such higher rating as may be required by a
lender having a lien on the Premises) as set forth in the most current issue of
"Best's Insurance Guide."

                  8.3.2    Certificates of Insurance. Tenant shall deliver to
Landlord certificates of insurance for all insurance required to be maintained
by Tenant in the form of Exhibit D, attached hereto (or in a form acceptable to
Landlord in its sole discretion), no later than seven (7) days prior to the date
of possession of the Premises. Tenant shall, at least ten (10) days prior to
expiration of the policy, furnish Landlord with certificates of renewal or

                                      -7-

<PAGE>

"binders" thereof. Each certificate shall expressly provide that such policies
shall not be cancelable or otherwise subject to modification except after sixty
(60) days prior written notice to the parties named as additional insureds in
this Lease (except in the case of cancellation for nonpayment of premium in
which case cancellation shall not take effect until at least ten (10) days'
notice has been given to Landlord). If Tenant fails to maintain any insurance
required in this Lease, Tenant shall be liable for all losses and costs suffered
or incurred by Landlord (including litigation costs and attorneys' fees and
expenses) resulting from said failure.

                  8.3.3    Additional Insureds. Landlord, Landlord's lender, if
any, and any property management company of Landlord for the Premises shall be
named as additional insureds on a form approved by Landlord under all of the
policies required by Section 8.2.1. The policies required under Section 8.2.1
shall provide for severability of interest.

                  8.3.4    Primary Coverage. All insurance to be maintained by
Tenant shall, except for workers' compensation and employer's liability
insurance, be primary, without right of contribution from insurance of Landlord.
Any umbrella liability policy or excess liability policy (which shall be in
"following form") shall provide that if the underlying aggregate is exhausted,
the excess coverage will drop down as primary insurance. The limits of insurance
maintained by Tenant shall not limit Tenant's liability under this Lease.

                  8.3.5    Mutual Waiver of Subrogation. Subject to Section
13.2, whenever (a) any loss, cost, damage or expense resulting from fire,
explosion or any other casualties incurred by either Landlord or Tenant or by
anyone claiming by, through or under Landlord or Tenant in connection with the
Premises, and (b) such party is covered in whole or in part by insurance (or
would have been covered but for such party's failure to maintain the coverage
required in this Section 8) with respect to such loss, cost, damage or expense
or as required under this Lease to be self-insured, then the party so insured
(or so required) hereby waives (on its own behalf and on behalf of its insured)
any claims against and releases the party from any liability said other party
may have on account of such loss, cost, damage or expense. All insurance which
is carried by either party to insure against damage or loss to property shall
include provisions denying to each respective insurer rights of subrogation and
recovery against the other party.

                  8.3.6    Notification of Incidents. Tenant shall notify
Landlord within twenty-four (24) hours after the occurrence of any accidents or
incidents in the Premises, the Building, Common Areas or the Project which could
give rise to a claim under any of the insurance policies required under this
Section 8.

         8.4      Indemnity. Tenant shall indemnify, protect, defend (by counsel
acceptable to Landlord) and hold harmless Landlord and Landlord's affiliated
entities, and each of their respective members, managers, partners, directors,
officers, employees, shareholders, lenders, agents, contractors, successors and
assigns from and against any and all claims, judgments, causes of action,
damages, penalties, costs, liabilities, and expenses, including all costs,
reasonable attorneys' fees, expenses and liabilities incurred in the defense of
any such claim or any action or proceeding brought thereon, arising at any time
during or after the Term as a result (directly or indirectly) of or in
connection with (i) any default in the performance of any obligation on Tenant's
part to be performed under the terms of this Lease, or (ii) Tenant's use of the
Premises, the conduct of Tenant's business or any activity, work or things done,
permitted or suffered by Tenant or any Tenant Party in or about the Premises,
the Building, the Common Area or other portions of the Project, except for
claims caused solely by Landlord's gross negligence or willful misconduct. The
obligations of Tenant under this Section 8.4 shall survive the termination of
this Lease with respect to any claims or liability arising prior to such
termination.

         8.5      Exemption of Landlord from Liability. Tenant, as a material
part of the consideration to Landlord, hereby assumes all risk of damage to
property including, but not limited to, Tenant's fixtures, equipment, furniture
and alterations or illness or injury to persons in, upon or about the Premises,
the Building, the Land, the Common Area or other portions of the Project arising
from any cause, and Tenant hereby expressly releases Landlord and waives all
claims in respect thereof against Landlord, except only such claims which are
caused solely by Landlord's gross negligence or willful misconduct or which are
expressly provided for in Section 12.3 hereof. Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of
income therefrom. Tenant hereby further agrees that Landlord shall not be liable
for damage to the property of Tenant, or injury to or illness or death of Tenant
or any Tenant Party or any other person in or about the Premises, the Building,
the Common Area or the Project, whether such damage, illness or injury is caused
by fire, steam, electricity, gas, water or rain, or from the

                                      -8-

<PAGE>

breakage, leakage or other defects of sprinklers, wires, appliances,
ventilation, plumbing, air conditioning or lighting fixtures, or from any other
cause, and whether said damage, illness or injury results from conditions
arising upon the Premises, upon other portions of the Building or from other
sources or places, and regardless of whether the cause of such damage, illness
or injury or the means of repairing the same is inaccessible to Tenant, except
only damage, illness or injury caused solely by Landlord's gross negligence or
willful misconduct or which is expressly provided to the contrary in Section
12.3 hereof. Landlord shall not be liable for any damages arising from any act
or neglect of any contractor or other tenant, if any, of the Building or the
Project or Landlord's failure to enforce the terms of any agreements with
parties other than Tenant; provided that Landlord shall use its commercially
reasonable efforts to enforce the terms of any agreements with parties other
than Tenant.

9.       REPAIRS AND MAINTENANCE

         9.1      Tenant. Tenant, at Tenant's sole cost and expense, shall keep
and maintain the Premises (interior and exterior, excluding roofing and
painting), including, without limitation, loading docks, roll up doors and
ramps, floors, subfloors and floor coverings, walls and wall coverings, doors,
windows, glass, plate glass, locks, ceilings, skylights, lighting systems,
interior plumbing, electrical and mechanical systems and wiring, appliances and
devices using or containing refrigerants, fixtures and equipment in good repair
and in a clean and safe condition, and repair and/or replace any and all of the
foregoing in a clean and safe condition, in good order, condition and repair.
Without limiting the foregoing, Tenant shall, at Tenant's sole expense,
immediately replace all broken glass in the Premises with glass equal to or in
excess of the specification and quality of the original glass; and repair any
area damaged by Tenant, Tenant's agents, employees, invitees and visitors,
including any damage caused by any roof penetration, whether or not such roof
penetration was approved by Landlord. All repairs and replacements by Tenant
shall be made and performed: (a) at Tenant's cost and expense and at such time
and in such manner as Landlord may designate, (b) by contractors or mechanics
approved by Landlord, (c) so that same shall be at least equal in quality, value
and utility to the original work or installation, (d) in a manner and using
equipment and materials that will not interfere with or impair the operations,
use or occupation of the Building or any of the mechanical, electrical, plumbing
or other systems in the Building or the Project, and (e) in accordance with the
Rules and Regulations and all Applicable Laws (as defined in Section 11). In the
event Tenant fails, in the reasonable judgment of Landlord, to maintain the
Premises in accordance with the obligations under the Lease, which failure
continues at the end of fifteen (15) days following Tenant's receipt of written
notice from Landlord stating the nature of the failure, or in the case of an
emergency immediately without prior notice, Landlord shall have the right to
enter the Premises and perform such maintenance, repairs or refurbishing at
Tenant's sole cost and expense (including a sum for overhead to Landlord equal
to ten percent (10%) of the costs of maintenance, repairs or refurbishing).
Tenant shall maintain written records of maintenance and repairs, as required by
any Applicable Law, and shall use certified technicians to perform such
maintenance and repairs, as so required. Tenant shall deliver full and complete
copies of all service or maintenance contracts entered into by Tenant for the
Premises to Landlord within one hundred twenty (120) days after the Commencement
Date.

         9.2      Landlord. Landlord shall, subject to the following
limitations, repair damage to structural portions of the roof, foundation and
load-bearing portions of walls (excluding wall coverings, painting, glass and
doors) of the Building, and damage to the exterior walls and other structural
portions of the Building; provided, if such damage is caused by an act or
omission of Tenant, or any Tenant Party, then such repairs shall be at Tenant's
sole expense. Landlord shall not be required to make any repair resulting from
(i) any alteration or modification to the Building or to mechanical equipment
within the Building performed by, for or because of Tenant or to special
equipment or systems installed by, for or because of Tenant, (ii) the
installation, use or operation of Tenant's property, fixtures and equipment,
(iii) the moving of Tenant's property in or out of the Building or in and about
the Premises, (iv) Tenant's use or occupancy of the Premises in violation of
Section 11 of this Lease or in the manner not contemplated by the parties at the
time of the execution of this Lease, (v) the acts or omissions of Tenant or any
Tenant Party, (vi) fire and other casualty, except as provided by Section 13 of
this Lease or (vii) condemnation, except as provided in Section 14 of this
Lease. Landlord shall have no obligation to make repairs under this Section 9.2
until a reasonable time after receipt of written notice from Tenant of the need
for such repairs. Subject to Section 9.3, there shall be no abatement of Rent
during the performance of such work, provided that neither the access to nor use
of the Premises is materially impaired in which case Tenant's exclusive remedy
shall be determined in accordance with Section 9.3 below. Landlord shall not be
liable to Tenant for injury or damage that may result from any defect in the
construction or condition of the Premises, nor for any damage that may result
from interruption of Tenant's use of the Premises during any repairs by
Landlord, provided that Landlord shall use its

                                      -9-

<PAGE>

commercially reasonable efforts to enforce the terms of any agreements with
parties other than Tenant. Tenant waives any right to repair the Premises, the
Building and/or the Common Area at the expense of Landlord under any Applicable
Law.

         9.3      Landlord's Failure to Perform. In the event Landlord fails to
commence the repair of the Premises as required by Section 9.2 above ("Landlord
Repair Obligations") and such failure to commence such repair(s) continues at
the end of thirty (30) days following Landlord's receipt of written notice from
Tenant stating with particularity the nature of such failure, Tenant shall
simultaneously give Landlord and Landlord's mortgagee (provided Tenant has been
provided written notice of the address of such mortgagee) written notice
specifying such default and containing the following phrase (or substantially
similar to the following phrase) on page 1 of the notice in all capital letters
and boldface type (or it shall not be deemed validly given to Landlord) "YOUR
FAILURE TO COMMENCE THE CURE OF LANDLORD'S REPAIR OBLIGATIONS SET FORTH IN THIS
NOTICE WITHIN TEN (10) BUSINESS DAYS SHALL ENTITLE THE UNDERSIGNED TO CURE SUCH
DEFAULT AT LANDLORD'S EXPENSE WITHOUT FURTHER NOTICE". Landlord shall thereupon
have ten (10) business days in which to commence to cure the applicable Landlord
Repair Obligation. In addition, Landlord's mortgagee shall have the right (but
not the obligation) to cure or remedy Landlord's Repair Obligations upon the
terms and conditions of any SNDA (as defined in Section 17.2 below) entered into
by and between Tenant and any such lender, and if no such SNDA exists, then upon
the terms and conditions described in Section 18.15 . In the event Landlord
fails to commence to cure the applicable Landlord Repair Obligation within said
ten (10) business day period and Tenant undertakes a Landlord Repair Obligation,
Tenant shall use a qualified, licensed and bondable contractor which normally
and regularly performs similar work on concrete tilt-up industrial buildings. If
Tenant thereafter delivers to Landlord an invoice by Tenant of its costs of
taking action which Tenant claims should have been taken by Landlord (the
"Tenant Invoice"), and if such Tenant Invoice sets forth a reasonably
particularized breakdown of its costs and expenses in connection with
undertaking such Landlord Repair Obligation, then Tenant shall be entitled to
offset against Base Rent the amount set forth in such Tenant Invoice following
delivery of the additional written notice described below; provided, however,
the amount of offset during any single month shall not exceed the greater of (A)
fifteen percent (15%) of the total Base Rent payable by Tenant to Landlord for
each applicable month or (B) the amount necessary to amortize fully Tenant's
costs of cure (plus interest at ten percent (10%) per annum on such costs) from
the date of completion of such cure to the expiration date of the Lease Term
(without regard to any unexercised renewal options), but in no event greater
than twenty percent (20%) of the total monthly Base Rent for any one month. The
unpaid balance of the Tenant's Invoice, if any, shall bear interest at an annual
rate of ten percent (10%). If, at any time, Landlord delivers to Tenant a
written objection to Tenant's claim that a particular Landlord Repair Obligation
is not required under the terms of this Lease, setting forth with reasonable
particularity Landlord's reasons for its claim that such repair action did not
have to be taken by Landlord pursuant to the terms of this Lease, then Tenant
shall not be entitled to such offset, but as Tenant's sole remedy, Tenant may
proceed to claim a Landlord default and, if elected by either Landlord or
Tenant, the matter shall proceed to resolution by arbitration pursuant to the
arbitration procedures set forth in attached Exhibit J. The costs of such
arbitration (including reasonable attorneys fees and costs awarded to the
prevailing party, if any) shall be paid to the prevailing party in the
arbitration if and to the extent awarded by the arbitrator. In the event that
Landlord fails to pay any amount to Tenant within twenty (20) days following
delivery of the Tenant Invoice, then Tenant may provide to Landlord a written
demand therefor ("Final Demand") which contains the following phrase (or
substantially similar to the following phrase) on page 1 of the notice in all
capital letters and boldface type (or it shall not be deemed validly delivered
to Landlord) "YOUR FAILURE TO REIMBURSE TENANT AS REQUIRED HEREIN WITHIN FIFTEEN
(15) DAYS SHALL ENTITLE THE UNDERSIGNED TO EXERCISE CERTAIN OFFSET RIGHTS AS SET
FORTH IN THE LEASE WITHOUT FURTHER NOTICE." If Landlord fails to pay to Tenant
the amount due to Tenant within fifteen (15) days following Landlord's receipt
of the Final Demand or if Landlord fails to pay any award granted to Tenant
pursuant to an arbitration proceeding in the manner described above within the
time frame established pursuant to any such proceeding, then Tenant may offset
from the next installments of rent and other charges coming due under this Lease
the full amount owed by Landlord to Tenant (together with all accrued interest).

10.      ALTERATIONS

         10.1     Trade Fixtures; Alterations. Tenant may install necessary
trade fixtures, equipment and furniture in the Premises, provided that such
items are installed and are removable without structural or material damage to
the Premises, or the Building. Tenant shall not construct, nor allow to be
constructed, any alterations or physical

                                      -10-

<PAGE>

additions in, about or to the Premises without obtaining the prior written
consent of Landlord, which consent shall be conditioned upon Tenant's compliance
with the provisions of Exhibit G and any other applicable requirements of
Landlord regarding construction of improvements and alterations. If Landlord
does not respond to a written request from Tenant made in accordance with
Exhibit G within ten (10) business days, then Landlord shall be deemed to
disapprove such request. In the event Tenant makes any alterations to the
Premises that trigger or give rise to a requirement that the Building or the
Premises come into compliance with any governmental laws, ordinances, statutes,
orders and/or regulations (such as ADA requirements), Tenant shall be fully
responsible for complying, at its sole cost and expense, with same. Tenant shall
file a notice of completion after completion of such work and provide Landlord
with a copy thereof.

         10.2     Damage; Removal. Tenant shall repair all damage to the
Premises, the Building, the Common Area or the Project caused by the
installation or removal of Tenant's fixtures, equipment, furniture or
alterations. Upon the expiration or earlier termination of this Lease, Tenant
shall remove any or all trade fixtures, alterations, additions, improvements and
partitions ("Alteration(s)") made or installed by Tenant. Upon the expiration or
earlier termination of this Lease, Tenant may remove the Tenant Improvements (as
defined in the Work Letter); provided, however, Tenant shall not remove nor
shall Tenant have any rights in or to that portion of the Tenant Improvements
comprising of mezzanine/office improvements, including, without limitation, the
mezzanine foundation or structure, the mezzanine entryways and stairways, any
office entryway or interior improvements and/or any other mezzanine/office
improvements or fixtures. Should Tenant make any Alterations without the prior
written approval of Landlord, Landlord may require that Tenant remove any or all
of such Alterations and repair any damage to the Premises resulting from the
installation and/or removal of such Alterations at any time and from time to
time. Subject to the conditions set forth above, Tenant shall restore the
Premises to its condition existing prior to the construction of any Alterations.
Tenant shall further patch and fill all holes within the Premises. All
penetrations of the roof shall be resealed to a water tight condition. In no
event shall Tenant remove from the Building any mechanical or electrical systems
or any wiring or any other aspect of any systems within the Premises, unless
Landlord specifically permits such removal in writing. All such removals and
restoration shall be accomplished in a good and workmanlike manner and so as not
to cause any damage to the Premises, the Building, the Common Area or the
Project whatsoever.

         10.3     Liens. Tenant shall promptly pay and discharge all claims for
labor performed, supplies furnished and services rendered at the request of
Tenant and shall keep the Premises free of all mechanics' and materialmen's
liens in connection therewith. Tenant shall provide at least ten (10) days prior
written notice to Landlord before any labor is performed, supplies furnished or
services rendered on or at the Premises and Landlord shall have the right to
post on the Premises notices of non-responsibility. If any lien is filed, Tenant
shall cause such lien to be released and removed within ten (10) days after the
date of filing, and if Tenant fails to do so, Landlord may take such action as
may be necessary to remove such lien and Tenant shall pay Landlord such amounts
expended by Landlord together with interest thereon at the Applicable Interest
Rate from the date of expenditure.

         10.4     Standard of Work. All work to be performed by or for Tenant
pursuant hereto shall be performed diligently and in a first class, workmanlike
manner, and in compliance with the terms of provisions of Exhibit G, all
Applicable Laws, and/or Tenant and Landlord's insurance carriers. Landlord shall
have the right, but not the obligation, to inspect periodically the work on the
Premises and Landlord may require changes in the method or quality of the work.

11.      USE. The Premises shall be used only for the Permitted Uses set forth
in the Basic Lease Information and for no other uses. Tenant's use of the
Premises shall be in compliance with and subject to all applicable laws,
statutes, codes, ordinances, orders, rules, regulations, conditions of approval
and requirements of all federal, state, county, municipal and governmental
authorities and all administrative or judicial orders or decrees and all
permits, licenses, approvals and other entitlements issued by governmental
entities, and rules of common law, relating to or affecting the Project, the
Premises or the Building or the use or operation thereof, whether now existing
or hereafter enacted, including, without limitation, the Americans with
Disabilities Act of 1990, 42 U.S.C. 12111 et seq. (the "ADA") as the same may be
amended from time to time, all Environmental Laws (as defined in Section 12.1),
and any covenants, conditions and restrictions encumbering the Land and/or the
Project or any supplement thereto recorded in any official or public records
with respect to the Project or any portion thereof ("Applicable Laws"). From and
after the date hereof Tenant shall use the Premises and permit the Premises to
be used solely for uses permitted by that certain Declaration of Covenants,
Conditions and Restrictions for Southshore Corporate Park executed by Catellus
Development Corporation and recorded in the Official Records of Multnomah
County, State of

                                      -11-

<PAGE>

Oregon on June 7, 1999 as Instrument No. 99113258 (the "CC&Rs"). In addition,
Tenant acknowledges that the Premises are subject to that certain Administrative
Order on Consent made and entered into by and among the United States
Environmental Protection Agency, the State of Oregon Department of Environmental
Quality and Winmar Pacific, Inc. dated effective as of April 16, 1991 (the
"Administrative Order"), which imposes certain covenants, conditions and
restrictions on Southshore Corporate Park. Tenant shall be responsible for
obtaining any permit, business license, or other permits or licenses required by
any governmental agency permitting Tenant's use or occupancy of the Premises. In
no event shall the Premises be used for any of the Prohibited Uses set forth on
Exhibit E attached hereto, as such Exhibit has been modified to conform to
Tenant's proposed use of the Premises. Notwithstanding any provision to the
contrary in this Section 11, in the event that a change in technology or similar
change in circumstances reasonably requires Tenant to use additional chemicals
or increased quantities of the permitted chemicals set forth on Schedule 1 to
Exhibit E (the "Permitted Hazardous Materials") in the manufacturing process
related to Tenant's Permitted Use, Tenant may submit to Landlord a written
request to modify Exhibit E which request shall identify the specific chemicals
and quantities to be used on the Premises (the "Proposed Hazardous Materials").
Landlord shall have ten (10) days from receipt of such a Tenant request to
approve or disapprove Tenant's request to modify the Permitted Hazardous
Materials in which case Landlord and Tenant shall execute an amendment to
Exhibit E of the Lease accordingly; provided, however, Landlord's approval
rights related to the Proposed Hazardous Materials shall be limited to the
Proposed Hazardous Materials' compliance with the CC&Rs and all Applicable Laws.
Subject to Tenant's obligation to comply with all Applicable Laws and the CC&Rs,
Landlord's failure to disapprove Tenant's requested modification to the
Permitted Hazardous Materials within such ten (10) day period shall be deemed
Landlord's approval thereof. Tenant shall comply with the rules and regulations
attached hereto as Exhibit F, together with such additional rules and
regulations as Landlord may from time to time prescribe. Tenant shall not commit
waste, overload the floors or structure of the Building, subject the Premises,
the Building, the Common Area or the Project to any use which would damage the
same or increase the risk of loss or violate any insurance coverage, permit any
unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate
from the Premises, take any action which would constitute a nuisance or would
disturb, obstruct or endanger any other tenants, take any action which would
abrogate any warranties, or use or allow the Premises to be used for any
unlawful purpose. Tenant shall have the right in common with other tenants of
Landlord to use the parking facilities of the Project. Tenant agrees not to
overburden the parking facilities and agrees to cooperate with Landlord and
other tenants in the use of parking facilities. Landlord shall provide the
number of parking spaces set forth in the Basic Lease Information for use by
Tenant. Landlord shall not be responsible for non-compliance by any other tenant
or occupant of the Project with, or Landlord's failure to enforce, any of the
rules or regulations or CC&Rs or any other terms or provisions of such tenant's
or occupant's lease. Tenant shall promptly comply with the reasonable
requirements of any board of fire insurance underwriters or other similar body
now or hereafter constituted. Tenant shall not do any act which shall in any way
encumber the title of Landlord in and to the Premises, the Building or the
Project.

12.      ENVIRONMENTAL MATTERS

         12.1     Hazardous Materials. Except as is specifically permitted
pursuant to Exhibit E (as modified from time to time in accordance with Section
11 of the Lease), Tenant shall not cause nor permit, nor allow any of Tenant's
employees, agents, customers, visitors, invitees, licensees, contractors,
assignees or subtenants (individually, a "Tenant Party" and collectively,
"Tenant's Parties") to cause or permit, any Hazardous Materials to be brought
upon, stored, manufactured, generated, blended, handled, recycled, treated,
disposed or used on, under or about the Premises, the Building, the Common Area
or the Project, except for the Permitted Hazardous Materials and/or routine
office and janitorial supplies in usual and customary quantities stored, used
and disposed of in accordance with all applicable Environmental Laws. As used
herein, "Hazardous Materials" means any chemical, substance, material,
controlled substance, object, condition, waste, living organism or combination
thereof, whether solid, semi-solid, liquid or gaseous, which is or may be
hazardous to human health or safety or to the environment due to its
radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity,
carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful or
potentially harmful properties or effects, including, without limitation,
tobacco smoke, petroleum and petroleum products, asbestos, radon,
polychlorinated biphenyls (PCBs), refrigerants (including those substances
defined in the Environmental Protection Agency's "Refrigerant Recycling

                                      -12-

<PAGE>

Rule," as amended from time to time) and all of those chemicals, substances,
materials, controlled substances, objects, conditions, wastes, living organisms
or combinations thereof which are now or become in the future listed, defined or
regulated in any manner by any Environmental Law based upon, directly or
indirectly, such properties or effects. As used herein, "Environmental Laws"
means any and all federal, state or local environmental, health and/or
safety-related laws, regulations, standards, decisions of courts, ordinances,
rules, codes, orders, decrees, directives, guidelines, permits or permit
conditions, currently existing and as amended, enacted, issued or adopted in the
future which are or become applicable to Tenant, the Premises, the Building, the
Common Area or the Project. Tenant and Tenant's Parties shall comply with all
Environmental Laws and promptly notify Landlord in writing of the violation of
any Environmental Law (or the presence of any Hazardous Materials, other than
the Permitted Hazardous Materials and/or office and janitorial supplies as
permitted above), in, on, under or about the Premises or the improvements or the
soil or groundwater thereunder. Landlord shall have the right to enter upon and
inspect the Premises and to conduct tests, monitoring and investigations. If
such tests indicate the presence of any environmental condition caused or
exacerbated by Tenant or any Tenant Party or arising during Tenant's or any
Tenant Party's occupancy, Tenant shall reimburse Landlord for the cost of
conducting such tests. The phrase "environmental condition" shall mean any
adverse condition relating to any Hazardous Materials or the environment,
including surface water, groundwater, drinking water supply, land, surface or
subsurface strata or the ambient air and includes air, land and water
pollutants, noise, vibration, light and odors. In the event of any such
environmental condition, Tenant shall promptly take any and all steps necessary
to rectify the same to the satisfaction of the applicable agencies and Landlord,
or shall, at Landlord's election, reimburse Landlord, upon demand, for the cost
to Landlord of performing rectifying work. The reimbursement shall be paid to
Landlord in advance of Landlord's performing such work, based upon Landlord's
reasonable estimate of the cost thereof; and upon completion of such work by
Landlord, Tenant shall pay to Landlord any shortfall promptly after receipt of
Landlord's bills therefor or Landlord shall promptly refund to Tenant any excess
deposit, as the case may be.

         12.2     Tenant's Indemnification. Tenant shall indemnify, protect,
defend (by counsel acceptable to Landlord) and hold harmless Landlord and
Landlord's affiliated entities, and each of their respective members, managers,
partners, directors, officers, employees, shareholders, lenders, agents,
contractors, successors and assigns (individually and collectively,
"Indemnitees") from and against any and all claims, judgments, causes of action,
damages, penalties, fines, taxes, costs, liabilities, losses and expenses
arising at any time during or after the Term as a result (directly or
indirectly) of or in connection with (a) Tenant and/or any Tenant Party's breach
of this Section 12, or (b) the presence of Hazardous Materials on, under or
about the Premises or other property as a result (directly or indirectly) of
Tenant's and/or any Tenant Party's activities, or failure to act, in connection
with the Premises. This indemnity shall include, without limitation, the cost of
any required or necessary repair, cleanup or detoxification, and the preparation
and implementation of any closure, monitoring or other required plans, whether
such action is required or necessary prior to or following the termination of
this Lease. Neither the written consent by Landlord to the presence of Hazardous
Materials on, under or about the Premises, nor the strict compliance by Tenant
with all Environmental Laws, shall excuse Tenant from Tenant's obligation of
indemnification pursuant hereto. Tenant's obligations pursuant to the foregoing
indemnity shall survive the expiration or termination of this Lease.

         12.3     Pre-existing Conditions and Indemnification

                  12.3.1   Landlord hereby represents to Tenant that, to its
actual knowledge, no environmental condition (as defined in Section 12.1) in
violation of law presently exists as of the Effective Date on, under, or within
the Premises (a "Pre-existing Condition"). For purposes of this Lease, current
"actual knowledge" shall mean the actual, present knowledge of Dan Marcus and
Jim Adams as of the date of this Lease, without investigation or inquiry of any
kind.

                  12.3.2   Landlord shall indemnify, protect, defend (by counsel
reasonably acceptable to Tenant) and hold harmless Tenant and its directors,
officers, employees, shareholders, lenders, and each of their respective
successors and assigns, from and against any and all claims, judgments, causes
of action, damages, penalties, fines, taxes, costs, liabilities, losses and
expenses (collectively, a "Claim") arising at any time during or after the Term
to the extent that such Claim results from any Pre-existing Condition which (i)
constitutes a breach of the representation set forth in Section 12.3.1, or (ii)
was authorized by Landlord or caused by the acts or omissions of Landlord (but
not the agents or contractors of Landlord or any other third party). The
indemnity obligation set forth in this Section 12.3.2 is limited to claims and
shall not include any consequential damages including, without limitation, any
relocation expenses, loss of revenue, or other losses incurred by any party.
Landlord's obligations

                                      -13-

<PAGE>

pursuant to the foregoing indemnity shall survive the termination of this Lease
for a period of one (1) year and shall not apply to any Claim not presented to
Landlord in writing within said one (1) year period.

                  12.3.3   Landlord shall indemnify, protect, defend (by counsel
reasonably acceptable to Tenant) and hold harmless Tenant and its directors,
officers, employees, shareholders, and lenders, and each of their respective
successors and assigns, from and against any and all orders, penalties, fines,
administrative actions, or other proceedings (collectively, a "Compliance
Obligation") commenced by any governmental agency including, without limitation,
the United States Environmental Protection Agency as a result of any
Pre-existing Condition (except to the extent that such Pre-existing Condition is
caused or aggravated by the act or omission of Tenant and/or Tenant's Parties).
The indemnity obligation set forth in this Section 12.3.3 is limited to
Compliance Obligations and shall not include any consequential damages
including, without limitation, any relocation expenses, loss of revenue, or
other losses incurred by any party. Landlord's obligations pursuant to the
foregoing indemnity shall survive the termination of this Lease for a period of
one (1) year and shall not apply to any Compliance Obligation not presented to
Landlord in writing within said one (1) year period.

                  12.3.4   The indemnity obligations of Landlord set forth in
Sections 12.3.2 and 12.3.3 above shall not be binding upon any lender acquiring
Landlord's interest in the Premises and/or this Lease pursuant to any
foreclosure proceeding, deed in lieu of foreclosure, or other enforcement action
taken pursuant to a deed of trust or mortgage encumbering the Premises.

13.      DAMAGE AND DESTRUCTION

         13.1     Casualty. If the Premises or Building should be damaged or
destroyed by fire or other casualty, Tenant shall give immediate written notice
to Landlord. Within thirty (30) days after receipt from Tenant of such written
notice, Landlord shall notify Tenant whether, after the date of the issuance of
permits for the necessary repair or reconstruction of the portion of the
Building or the Premises which was damaged, the necessary repairs can reasonably
be made: (a) within ninety (90) days; (b) in more than ninety (90) days but in
less than one hundred eighty (180) days; or (c) in more than one hundred eighty
(180) days.

                  13.1.1   Less Than 90 Days. If the Premises or Building should
be damaged only to such extent that rebuilding or repairs can reasonably be
completed within ninety (90) days after the issuance of permits for the
necessary repair or reconstruction of the portion of the Building or Premises
which was damaged or destroyed, this Lease shall not terminate and, provided
that insurance proceeds are available to fully repair the damage, subject to
Section 13.2 below, Landlord shall repair the Premises, except that Landlord
shall not be required to rebuild, repair or replace Tenant's Property which may
have been placed in, on or about the Premises by or for the benefit of Tenant.
If Tenant is required to vacate all or a portion of the Premises during
Landlord's repair thereof, the Rent payable hereunder shall be abated
proportionately on the basis of the size of the area of the Premises that is
damaged (i.e., the number of square feet of floor area of the Premises that is
damaged compared to the total square footage of the floor area of the Premises)
from the date Tenant vacates all or a portion of the Premises that was damaged
only to the extent rental abatement insurance proceeds are received by Landlord
(or would have been received but for Landlord's failure to carry the insurance
required to be carried by Landlord pursuant to Section 8.1 above) and only
during the period the Premises are unfit for occupancy.

                  13.1.2   Greater Than 90 Days. If the Premises or Building
should be damaged only to such extent that rebuilding or repairs can reasonably
be completed in more than ninety (90) days but in less than one hundred eighty
(180) days after the issuance of permits for the necessary repair or
reconstruction of the portion of the Building or Premises which was damaged or
destroyed, then Landlord shall have the option of: (a) terminating the Lease
effective upon the occurrence of such damage, in which event the Rent shall be
abated from the date Tenant vacates the Premises; or (b) electing to repair the
Premises, provided insurance proceeds are available (or such proceeds would have
been available but for Landlord's failure to carry insurance as described in
Section 8.1 above) to fully repair the damage, except that Landlord shall not be
required to rebuild, repair or replace Tenant's Property which may have been
placed in, on or about the Premises by or for the benefit of Tenant. If Tenant
is required to vacate all or a portion of the Premises during Landlord's repair
thereof, the Rent payable hereunder shall be abated proportionately on the basis
of the size of the area of the Premises that is damaged (i.e., the number of
square feet of floor area of the Premises that is damaged compared to the total
square footage of the floor area of the Premises) from the date Tenant vacates
all or a portion of the Premises that was damaged only to the extent rental

                                      -14-

<PAGE>

abatement insurance proceeds are received by Landlord (or such proceeds would
have been received by Landlord but for Landlord's failure to carry rental
abatement insurance as described in Section 8.1 above) and only during the
period the Premises are unfit for occupancy. In the event that Landlord should
fail to substantially complete such repairs within one hundred eighty (180) days
after the issuance of permits for the necessary repair or reconstruction of the
portion of the Building or Premises which was damaged or destroyed, (such period
to be extended for delays caused by Tenant or because of any items of Force
Majeure, as hereinafter defined) and Tenant has not re-occupied the Premises,
Tenant shall have the right, as Tenant's exclusive remedy, within ten (10) days
after the expiration of such one hundred eighty (180) day period, and provided
that such repairs have not been substantially completed within such ten (10) day
period, to terminate this Lease by delivering written notice to Landlord as
Tenant's exclusive remedy, whereupon all rights hereunder shall cease and
terminate thirty (30) days after Landlord's receipt of such notice.

                  13.1.3   Greater Than 180 Days. If the Premises or Building
should be so damaged that rebuilding or repairs cannot be completed within one
hundred eighty (180) days after the issuance of permits for the necessary repair
or reconstruction of the portion of the Building or Premises which was damaged
or destroyed, either Landlord or Tenant may terminate this Lease by giving
written notice within ten (10) days after notice from Landlord specifying such
time period of repair; and this Lease shall terminate and the Rent shall be
abated from the date Tenant vacates the Premises. In the event that neither
party elects to terminate this Lease, Landlord shall promptly commence and
diligently prosecute to completion the repairs to the Building or Premises,
provided insurance proceeds are available (or such proceeds would have been
available but for Landlord's failure to carry insurance as described in Section
8.1 above) to repair the damage except that Landlord shall not be required to
rebuild, repair or replace Tenant's Property which may have been placed in, on
or about the Premises by or for the benefit of Tenant. If Tenant is required to
vacate all or a portion of the Premises during Landlord's repair thereof, the
Rent payable hereunder shall be abated proportionately on the basis of the size
of the area of the Premises that is damaged (i.e., the number of square feet of
floor area of the Premises that is damaged compared to the total square footage
of the floor area of the Premises), from the date Tenant vacates all or a
portion of the Premises that was damaged only to the extent rental abatement
insurance proceeds are received by Landlord (or such proceeds would have been
received by Landlord but for Landlord's failure to carry rental abatement
insurance as described in Section 8.1 above) and only during the period that the
Premises are unfit for occupancy.

                  13.1.4   Casualty During the Last Year of the Lease Term.
Notwithstanding any other provisions hereof, if the Premises or the Building
shall be damaged within the last year of the Lease Term, and if the cost to
repair or reconstruct the portion of the Building or the Premises which was
damaged or destroyed shall exceed Landlord's then-applicable insurance
deductible, then, irrespective of the time necessary to complete such repair or
reconstruction, Landlord shall have the right, in its sole discretion, to
terminate the Lease effective upon the occurrence of such damage, in which event
the Rent shall be abated from the date Tenant vacates the Premises. The
foregoing right shall be in addition to any other right and option of Landlord
under this Section 13.

         13.2     Tenant's Fault. If the Premises or any portion of the Building
is damaged resulting from the negligence or breach of this Lease by Tenant or
any of Tenant's Parties, Rent shall not be reduced during the repair of such
damage and Tenant shall be liable to Landlord for the cost of the repair caused
thereby to the extent such cost is not covered by insurance proceeds received by
Landlord.

         13.3     Uninsured Casualty. Tenant shall be responsible for and shall
pay to Landlord Tenant's Share of any deductible or retention amount payable
under the property insurance for the Building. Notwithstanding Section 13.1, in
the event that the Premises or any portion of the Building is damaged to the
extent Tenant is unable to use the Premises and such damage is not covered by
insurance proceeds received by Landlord or in the event that the holder of any
indebtedness secured by the Premises requires that the insurance proceeds be
applied to such indebtedness, then Landlord shall have the right at Landlord's
option either (i) to repair such damage as soon as reasonably possible at
Landlord's expense, or (ii) to give written notice to Tenant within thirty (30)
days after the date of the occurrence of such damage of Landlord's intention to
terminate this Lease as of the date of the occurrence of such damage. In the
event Landlord elects to terminate this Lease, Tenant shall have the right
within ten (10) days after receipt of such notice to give written notice to
Landlord of Tenant's commitment to pay the cost of repair of such damage, in
which event this Lease shall continue in full force and effect, and Landlord
shall make such repairs as soon as reasonably possible subject to the following
condition: Tenant shall deposit with Landlord Landlord's estimated cost of such
repairs not later than ten (10) days prior to Landlord's commencement of the
repair

                                      -15-

<PAGE>

work. If the cost of such repairs exceeds the amount deposited, Tenant shall
reimburse Landlord for such excess cost within fifteen (15) days after receipt
of an invoice from Landlord. Any amount deposited by Tenant in excess of the
cost of such repairs shall be refunded within thirty (30) days of Landlord's
final payment to Landlord's contractor. If Tenant does not give such notice
within the ten (10) day period, or fails to make such deposit as required, this
Lease shall terminate automatically as of the date of the occurrence of the
damage.

         13.4     Waiver. With respect to any damage or destruction which
Landlord is obligated to repair or may elect to repair, Tenant waives all rights
to terminate this Lease pursuant to rights otherwise presently or hereafter
accorded by law.

14.      EMINENT DOMAIN

         14.1     Total Condemnation. If all of the Premises is condemned by
eminent domain, inversely condemned or sold under threat of condemnation for any
public or quasi-public use or purpose ("Condemned"), this Lease shall terminate
as of the earlier of the date the condemning authority takes title to or
possession of the Premises, and Rent shall be adjusted to the date of
termination.

         14.2     Partial Condemnation. If any portion of the Premises or the
Building is Condemned and such partial condemnation materially impairs Tenant's
ability to use the Premises for Tenant's business, Landlord shall have the
option of either (i) relocating Tenant to comparable space within the Project or
(ii) terminating this Lease as of the earlier of the date title vests in the
condemning authority or as of the date an order of immediate possession is
issued and Rent shall be adjusted to the date of termination. In the event of
relocation, Landlord shall pay the cost of constructing tenant improvements in
the new premises that are substantially equivalent to the improvements made
pursuant to the Work Letter, provided that Landlord receive from the condemning
authority proceeds sufficient to construct such improvements. If such partial
condemnation does not materially impair Tenant's ability to use the Premises for
the business of Tenant, Landlord shall promptly restore the Premises to the
extent of any condemnation proceeds recovered by Landlord, excluding the portion
thereof lost in such condemnation, and this Lease shall continue in full force
and effect except that after the date of such title vesting or order of
immediate possession Rent shall be adjusted as reasonably determined by
Landlord.

         14.3     Award. If the Premises are wholly or partially Condemned,
Landlord shall be entitled to the entire award paid for such condemnation, and
Tenant waives any claim to any part of the award from Landlord or the condemning
authority; provided, however, Tenant shall have the right to recover from the
condemning authority such compensation as may be separately awarded to Tenant in
connection with costs in removing Tenant's merchandise, furniture, fixtures,
leasehold improvements and equipment to a new location, for business
interruption, loss of good will or other consequential damages. No condemnation
of any kind shall be construed to constitute an actual or constructive eviction
of Tenant or a breach of any express or implied covenant of quiet enjoyment.

         14.4     Temporary Condemnation. In the event of a temporary
condemnation not extending beyond the Term, this Lease shall remain in effect,
Tenant shall continue to pay Rent and Tenant shall receive any award made for
such condemnation except damages to any of Landlord's property. If a temporary
condemnation is for a period which extends beyond the Term, this Lease shall
terminate as of the date of initial occupancy by the condemning authority and
any such award shall be distributed in accordance with the preceding section. If
a temporary condemnation remains in effect at the expiration or earlier
termination of this Lease, Tenant shall pay Landlord the reasonable cost of
performing any obligations required of Tenant with respect to the surrender of
the Premises.

15.      DEFAULT

         15.1     Events of Defaults. The occurrence of any of the following
events shall, at Landlord's option, constitute an "Event of Default":

                  15.1.1   Abandonment of the Premises for a period of thirty
(30) consecutive days;

                  15.1.2   Failure to pay Rent on the date when due and the
failure continuing for a period of five (5) days after such payment is due;

                                      -16-

<PAGE>

                  15.1.3   Failure to perform Tenant's covenants and obligations
hereunder (except default in the payment of Rent) where such failure continues
for a period of thirty (30) days after written notice from Landlord; provided,
however, if the nature of the default is such that more than thirty (30) days
are reasonably required for its cure, Tenant shall not be deemed to be in
default if Tenant commences the cure within ten (10) days after written notice
from Landlord and diligently and continuously prosecutes such cure to
completion;

                  15.1.4   The making of a general assignment by Tenant for the
benefit of creditors; the filing of a voluntary petition by Tenant or the filing
of an involuntary petition by any of Tenant's creditors seeking the
rehabilitation, liquidation or reorganization of Tenant under any law relating
to bankruptcy, insolvency or other relief of debtors and, in the case of an
involuntary action, the failure to remove or discharge the same within sixty
(60) days of such filing; the appointment of a receiver or other custodian to
take possession of substantially all of Tenant's assets or this leasehold;
Tenant's insolvency or inability to pay Tenant's debts or failure generally to
pay Tenant's debts when due; any court entering a decree or order directing the
winding up or liquidation of Tenant or of substantially all of Tenant's assets;
Tenant taking any action toward the dissolution or winding up of Tenant's
affairs; the cessation or suspension of Tenant's use of the Premises; or the
attachment, execution or other judicial seizure of substantially all of Tenant's
assets or this leasehold;

                  15.1.5   The making of any material misrepresentation or
omission by Tenant or any successor in interest of Tenant in any materials
delivered by or on behalf of Tenant to Landlord or Landlord's lender pursuant to
this Lease; or

                  15.1.6   The occurrence of an Event of Default set forth in
Section 15.1.4 or 15.1.5 with respect to any guarantor of this Lease, if
applicable.

         15.2     Remedies

                  15.2.1   Termination. In the event of the occurrence of any
Event of Default, Landlord shall have the right to give a written termination
notice to Tenant (which notice may be the notice given under Section 15.1 above,
if applicable, and which notice shall be in lieu of any notice required by
O.R.S. Section 105.120 or any other Oregon law) and, on the date specified in
such notice, this Lease shall terminate unless on or before such date all
arrears of Rent and all other sums payable by Tenant under this Lease and all
costs and expenses incurred by or on behalf of Landlord hereunder shall have
been paid by Tenant and all other Events of Default at the time existing shall
have been fully remedied to the satisfaction of Landlord.

                           15.2.1.1 Repossession. Following termination, without
prejudice to other remedies Landlord may have, Landlord may (i) peaceably
re-enter the Premises upon voluntary surrender by Tenant or remove Tenant
therefrom and any other persons occupying the Premises, using such legal
proceedings as may be available; (ii) repossess the Premises or relet the
Premises or any part thereof for such term (which may be for a term extending
beyond the Term), at such rental and upon such other terms and conditions as
Landlord in Landlord's sole discretion shall determine, with the right to make
reasonable alterations and repairs to the Premises; and (iii) remove all
personal property therefrom.

                           15.2.1.2 Unpaid Rent. Landlord shall have all the
rights and remedies of a landlord provided by Applicable Law, including the
right to recover from Tenant: (a) the worth, at the time of award, of the unpaid
Rent that had been earned at the time of termination, (b) the worth, at the time
of award, of the amount by which the unpaid Rent that would have been earned
after the date of termination until the time of award exceeds the amount of loss
of rent that Tenant proves could have been reasonably avoided, (c) the worth, at
the time of award, of the amount by which the unpaid Rent for the balance of the
Term after the time of award exceeds the amount of the loss of rent that Tenant
proves could have been reasonably avoided, and (d) any other amount, and court
costs, necessary to compensate Landlord for all detriment proximately caused by
Tenant's default. The phrase "worth, at the time of award," as used in (a) and
(b) above, shall be computed at the Applicable Interest Rate, and as used in (c)
above, shall be computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent
(1%).

                  15.2.2   Continuation. Even though an Event of Default may
have occurred, this Lease shall continue in effect for so long as Landlord does
not terminate Tenant's right to possession; and Landlord may enforce

                                      -17-

<PAGE>

all of Landlord's rights and remedies under this Lease allowed by law ("lessor"
may continue the Lease in effect after "lessee's" breach and abandonment and
recover Rent as it becomes due) to recover Rent as it becomes due. Landlord,
without terminating this Lease, may, during the period Tenant is in default,
enter the Premises and relet the same, or any portion thereof, to third parties
for Tenant's account and Tenant shall be liable to Landlord for all costs
Landlord incurs in reletting the Premises, including, without limitation,
brokers' commissions, expenses of remodeling the Premises and like costs.
Reletting may be for a period shorter or longer than the remaining Term. Tenant
shall continue to pay the Rent on the date the same is due. No act by Landlord
hereunder, including acts of maintenance, preservation or efforts to lease the
Premises or the appointment of a receiver upon application of Landlord to
protect Landlord's interest under this Lease, shall terminate this Lease unless
Landlord notifies Tenant that Landlord elects to terminate this Lease. In the
event that Landlord elects to relet the Premises, the rent that Landlord
receives from reletting shall be applied to the payment of, first, any
indebtedness from Tenant to Landlord other than Base Rent and Tenant's Share of
Operating Expenses (including Real Property Taxes); second, all costs, including
maintenance, incurred by Landlord in reletting; and, third, Base Rent and
Tenant's Share of Operating Expenses (including Real Property Taxes) under this
Lease. After deducting the payments referred to above, any sum remaining from
the rental Landlord receives from reletting shall be held by Landlord and
applied in payment of future Rent as Rent becomes due under this Lease. In no
event, and notwithstanding anything in Section 16 to the contrary, shall Tenant
be entitled to any excess rent received by Landlord. If, on the date Rent is due
under this Lease, the rent received from the reletting is less than the Rent due
on that date, Tenant shall pay to Landlord, in addition to the remaining Rent
due, all costs, including maintenance, which Landlord incurred in reletting the
Premises that remain after applying the rent received from reletting as provided
hereinabove. So long as this Lease is not terminated, Landlord shall have the
right to remedy any default of Tenant, to maintain or improve the Premises, to
cause a receiver to be appointed to administer the Premises and new or existing
subleases and to add to the Rent payable hereunder all of Landlord's reasonable
costs in so doing, with interest at the Applicable Interest Rate from the date
of such expenditure. Landlord shall have no duty to relet the Premises so long
as it has other unleased space available in the Project.

         15.3     Cumulative. Each right and remedy of Landlord provided for
herein or now or hereafter existing at law, in equity, by statute or otherwise
shall be cumulative and shall not preclude Landlord from exercising any other
rights or remedies provided for in this Lease or now or hereafter existing at
law or in equity, by statute or otherwise. No payment by Tenant of a lesser
amount than the Rent nor any endorsement on any check or letter accompanying any
check or payment as Rent shall be deemed an accord and satisfaction of full
payment of Rent; and Landlord may accept such payment without prejudice to
Landlord's right to recover the balance of such Rent or to pursue other
remedies.

16.      ASSIGNMENT AND SUBLETTING. Tenant shall not assign, sublet or otherwise
transfer, whether voluntarily or involuntarily or by operation of law, the
Premises or any part thereof without Landlord's prior written approval, which
shall not be unreasonably withheld; provided, however, Tenant agrees it shall be
reasonable for Landlord to disapprove of a requested sublease or assignment, if
the proposed subtenant or assignee does not have a tangible net worth (as
determined in accordance with generally accepted accounting principles
consistently applied) equal to or greater than that of Tenant as of the date of
the Lease as shown in the financial information provided to Landlord, or if the
proposed subtenant or assignee is currently a tenant in any other space leased
by Landlord or if such proposed subtenant or assignee is in the process of
negotiation with Landlord to lease other space owned or managed by Landlord. The
merger of Tenant with any other entity in which Tenant does not retain a
controlling ownership or beneficial interest or the transfer of any controlling
or managing ownership or beneficial interest in Tenant, or the assignment of a
substantial portion of the assets of Tenant, whether or not located at the
Premises, shall constitute an assignment hereunder. If Tenant desires to assign
this Lease or sublet any or all of the Premises, Tenant shall give Landlord
written notice thereof with copies of all related documents and agreements
associated with the assignment or sublease, including without limitation, the
financial statements of any proposed assignee or subtenant, forty-five (45) days
prior to the anticipated effective date of the assignment or sublease. Tenant
shall pay Landlord's reasonable attorneys' fees incurred in the review of such
documentation plus an administrative fee of Five Hundred Dollars ($500.00) for
each proposed transfer. Landlord shall have a period of thirty (30) days
following receipt of such notice and all related documents and agreements to
notify Tenant in writing of Landlord's approval or disapproval of the proposed
assignment or sublease. If Landlord fails to notify Tenant in writing of such
election, Landlord shall be deemed to have disapproved such assignment or
subletting. This Lease may not be assigned by operation of law. If the proposed
assignment or sublease is for substantially the remainder of the Term, Landlord
may terminate the Lease (or in the case of a partial sublease, terminate the
Lease with respect to the portion of the

                                      -18-

<PAGE>

Premises proposed to be subject to the sublease) by giving written notice to
Tenant within such thirty (30) day period. Any purported assignment or
subletting contrary to the provisions hereof shall be void and shall constitute
an Event of Default hereunder. If Tenant receives rent or other consideration
for any such transfer in excess of the Rent, or in case of the sublease of a
portion of the Premises, in excess of such Rent that is fairly allocable to such
portion, after appropriate adjustments to assure that all other payments
required hereunder are appropriately taken into account, Tenant shall pay
Landlord one hundred percent (100%) of the difference between each such payment
of rent or other consideration and the Rent required hereunder. Landlord may,
without waiving any rights or remedies, collect rent from the assignee,
subtenant or occupant and apply the net amount collected to the Rent herein
reserved and apportion any excess rent so collected in accordance with the terms
of the preceding sentence. Such acceptance of Rent shall in no event be deemed
to imply that Landlord is approving a subtenant or assignee which Landlord has
not approved in writing pursuant to the requirements of this Section 16. Tenant
shall continue to be liable as a principal and not as a guarantor or surety to
the same extent as though no assignment had been made. Landlord may consent to
subsequent assignments or subletting of this Lease or amendments or
modifications to the Lease by assignees of Tenant without notifying Tenant or
any successor of Tenant and without obtaining their consent. No permitted
assignment (but excluding a permitted sublease) shall be effective until there
has been delivered to Landlord a counterpart of the assignment instrument in
which the assignee agrees to be and remain jointly and severally liable with
Tenant for the payment of Rent pertaining to the Premises and for the
performance of all the terms and provisions of this Lease relating thereto
arising on or after the date of the transfer.

17.      ESTOPPEL, ATTORNMENT AND SUBORDINATION

         17.1     Estoppel. Within ten (10) days after written request by
Landlord, Tenant shall deliver an estoppel certificate duly executed (and
acknowledged if required by any lender), substantially in the form attached
hereto as Exhibit H, or in such other form as may be acceptable to the lender,
which form may include some or all of the provisions contained in Exhibit H, to
any proposed mortgagee, purchaser or Landlord. Tenant's failure to deliver said
statement in such time period shall be an Event of Default hereunder and shall
be conclusive upon Tenant that (a) this Lease is in full force and effect,
without modification except as may be represented by Landlord; (b) there are no
uncured defaults in Landlord's performance and Tenant has no right of offset,
counterclaim or deduction against Rent hereunder; and (c) no more than one
month's Base Rent has been paid in advance. If any financier should require that
this Lease be amended (other than in the description of the Premises, the Term,
the Permitted Use, the Rent or as will substantially, materially or adversely
affect the rights of Tenant), Landlord shall give written notice thereof to
Tenant, which notice shall be accompanied by a Lease supplement embodying such
amendments. Tenant shall, within ten (10) days after the receipt of Landlord's
notice, execute and deliver to Landlord the tendered Lease supplement. If Tenant
fails to deliver to Landlord the tendered Lease supplement within ten (10) days
after receipt of Landlord's notice, Tenant shall be deemed to have given
Landlord a power of attorney to execute such supplement on behalf of Tenant.

         17.2     Subordination. This Lease shall be subject and subordinate to
all ground leases, master leases and the lien of all mortgages and deeds of
trust which now or hereafter affect the Premises or the Project or Landlord's
interest therein, and all amendments thereto, provided that Tenant receives an
executed Subordination, Nondisturbance and Attornment Agreement ("SNDA") in the
form attached hereto as Exhibit I (or such other form as may be commercially
reasonable which form may include some or all of the provisions contained in
Exhibit I, so long as such form of SNDA includes a non-disturbance agreement in
favor of Tenant) or as otherwise may be required by the applicable lender,
ground lessee and/or master lessor (so long as such documentation includes a
non-disturbance agreement in favor of Tenant). If requested, Tenant shall
execute and deliver to Landlord within ten (10) days after Landlord's request
whatever documentation that may reasonably be required to further effect the
provisions of this paragraph including an SNDA in the form attached hereto as
Exhibit I (or such other form as may be commercially reasonable which form may
include some or all of the provisions contained in Exhibit I, so long as such
form of SNDA includes a non-disturbance agreement in favor of Tenant) or as
otherwise may be required by the applicable lender, ground lessee and/or master
lessor (so long as such documentation includes a non-disturbance agreement in
favor of Tenant).

         17.3     Attornment. Tenant hereby agrees that Tenant will recognize as
its landlord under this Lease and shall attorn to any person succeeding to the
interest of Landlord in respect of the land and the buildings governed by this
Lease upon any foreclosure of any mortgage upon such land or buildings or upon
the execution of any deed in lieu of foreclosure in respect to such deed of
trust. If requested, Tenant shall execute and deliver an instrument or

                                      -19-

<PAGE>

instruments confirming its attornment as provided for herein; provided, however,
that no such beneficiary or successor-in-interest shall be bound by any payment
of Base Rent for more than one (1) month in advance, or any amendment or
modification of this Lease made without the express written consent of such
beneficiary where such consent is required under applicable loan documents.

18.      MISCELLANEOUS

         18.1     General

                  18.1.1   Entire Agreement. This Lease sets forth all the
agreements between Landlord and Tenant concerning the Premises; and there are no
agreements either oral or written other than as set forth herein.

                  18.1.2   Time of Essence. Time is of the essence of this
Lease.

                  18.1.3   Attorneys' Fees. In any action or proceeding which
either party brings against the other to enforce its rights hereunder, the
nonprevailing party shall pay all costs incurred by the prevailing party,
including reasonable attorneys' fees, which amounts shall be a part of the
judgment in said action or proceeding.

                  18.1.4   Severability. If any provision of this Lease or the
application of any such provision shall be held by a court of competent
jurisdiction to be invalid, void or unenforceable to any extent, the remaining
provisions of this Lease and the application thereof shall remain in full force
and effect and shall not be affected, impaired or invalidated.

                  18.1.5   Law. This Lease shall be construed and enforced in
accordance with the laws of the state in which the Premises are located.

                  18.1.6   No Option. Submission of this Lease to Tenant for
examination or negotiation does not constitute an option to lease, offer to
lease or a reservation of, or option for, the Premises; and this document shall
become effective and binding only upon the execution and delivery hereof by
Landlord and Tenant.

                  18.1.7   Successors and Assigns. This Lease shall be binding
upon and inure to the benefit of the successors and assigns of Landlord and,
subject to compliance with the terms of Section 16, Tenant.

                  18.1.8   Third Party Beneficiaries. Nothing herein is intended
to create any third party benefit.

                  18.1.9   Memorandum of Lease. On or before fifteen (15)
business days following a written request by either Landlord or Tenant, the
parties agree to execute and record a short form memorandum of this Lease, in a
recordable form reasonably acceptable to Landlord and Tenant. Within five (5)
business days following the expiration or earlier termination of this Lease,
Tenant shall execute (and have properly notarized) and deliver to Landlord a
Quitclaim Deed, in recordable form, quitclaiming, terminating and forever
surrendering any and all right, title or interests Tenant may have in or to the
Premises.

                  18.1.10  Agency, Partnership or Joint Venture. Nothing
contained herein nor any acts of the parties hereto shall be deemed or construed
by the parties hereto, nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture by the parties hereto
or any relationship other than the relationship of landlord and tenant.

                  18.1.11  Merger. The voluntary or other surrender of this
Lease by Tenant or a mutual cancellation thereof or a termination by Landlord
shall not work a merger and shall, at the option of Landlord, terminate all or
any existing subtenancies or may, at the option of Landlord, operate as an
assignment to Landlord of any or all of such subtenancies.

                  18.1.12  Headings. Section headings have been inserted solely
as a matter of convenience and are not intended to define or limit the scope of
any of the provisions contained therein.

                                      -20-

<PAGE>

                  18.1.13  Security Measures. Tenant hereby acknowledges that
Landlord shall have no obligation to provide a guard service or other security
measures whatsoever. Tenant assumes all responsibility for the protection of the
Premises, Tenant, its agents and invitees and their property from the acts of
third parties.

         18.2     Signs. All signs and graphics of every kind visible in or from
public view or corridors, the Common Areas or the exterior of the Premises
(whether located inside or outside of the Premises) shall be subject to
Landlord's prior written approval (not to be unreasonably withheld) and shall be
subject to the CC&Rs and any applicable governmental laws, ordinances, and
regulations and in compliance with Landlord's signage program (if any). Tenant
shall remove all such signs and graphics prior to the termination of this Lease.
Such installations and removals shall be made in such manner as to avoid injury
or defacement of the Premises; and Tenant shall repair any injury or defacement,
including without limitation, discoloration caused by such installation or
removal.

         18.3     Waiver. No waiver of any default or breach hereunder shall be
implied from any omission to take action on account thereof, notwithstanding any
custom and practice or course of dealing. No waiver by either party of any
provision under this Lease shall be effective unless in writing and signed by
such party. No waiver shall affect any default other than the default specified
in the waiver and then such waiver shall be operative only for the time and to
the extent therein stated. Waivers of any covenant shall not be construed as a
waiver of any subsequent breach of the same.

         18.4     Financial Statements. Tenant shall provide, and cause each
Guarantor, if applicable, to provide to any lender, any purchaser of the
Building and/or the Project or Landlord, within ten (10) days after request, a
current, accurate, audited (or reviewed and certified by Tenant) financial
statement for Tenant and Tenant's business and financial statements for Tenant
and Tenant's business for each of the three (3) years prior to the current
financial statement year prepared under generally accepted accounting principles
consistently applied. Tenant shall also provide within said 10-day period such
other financial information as may be reasonably required by Landlord, any
purchaser of the Building and/or the Project or any lender; Landlord shall keep
or cause to be kept all such financial information strictly confidential.

         18.5     Limitation of Liability. The obligations of Landlord under
this Lease are not personal obligations of the individual partners, members,
managers, directors, officers, shareholders, agents or employees of Landlord;
and, subject to this Section 18.5, Tenant shall look solely to the Building and
the Land for satisfaction of any liability of Landlord and shall not look to
other assets of Landlord nor seek recourse against the assets of the individual
partners, directors, officers, shareholders, agents or employees of Landlord.
Whenever Landlord transfers its interest, Landlord shall be automatically
released from further performance under this Lease and from all further
liabilities and expenses hereunder and the transferee of Landlord's interest
shall assume all liabilities and obligations of Landlord hereunder from the date
of such transfer, provided, however, Landlord shall remain liable for any
unperformed obligations arising prior to the date of such transfer.

         18.6     Notices. All notices to be given hereunder shall be in writing
and mailed postage prepaid by certified or registered mail, return receipt
requested, or delivered by personal or courier delivery, or sent by facsimile,
electronically confirmed, (immediately followed by one of the preceding
methods), to Landlord's Address and Tenant's Address, or to such other place as
Landlord or Tenant may designate in a written notice given to the other party.
Notices shall be deemed served upon the first attempted delivery by the U.S.
Postal Service, the courier or a recognized overnight delivery service, or upon
receipt of the facsimile prior to 5 p.m. on any business day, or, if after 5
p.m., on the next business day.

         18.7     Brokerage Commission. Landlord shall pay a brokerage
commission to Landlord's Broker specified in the Basic Lease Information in
accordance with a separate agreement between Landlord and Landlord's Broker.
Landlord shall have no further or separate obligation for payment of any
commissions or fees to any other broker or finder. Tenant warrants to Landlord
that Tenant's sole contact with Landlord or with the Premises in connection with
this transaction has been directly with Landlord, Landlord's Broker and Tenant's
Broker specified in the Basic Lease Information, and that no other broker or
finder can properly claim a right to a commission or a finder's fee based upon
contacts between the claimant and Tenant. Any commissions or fees payable to
Tenant's Broker with respect to this transaction shall be paid by Landlord's
Broker, and Landlord and Tenant shall have no obligation with respect thereto.
Subject to the foregoing, Tenant agrees to indemnify and hold Landlord harmless
from any claims or liability, including reasonable attorneys' fees, in
connection with a claim by any person for a real

                                      -21-

<PAGE>

estate broker's commission, finder's fee or other compensation based upon any
statement, representation or agreement of Tenant, and Landlord agrees to
indemnify and hold Tenant harmless from any such claims or liability, including
reasonable attorneys' fees, based upon any statement, representation or
agreement of Landlord.

         18.8     Authorization. Each individual executing this Lease on behalf
of Tenant represents and warrants that he or she is duly authorized to execute
and deliver this Lease on behalf of Tenant and that such execution is binding
upon Tenant.

         18.9     Holding Over; Surrender.

                  18.9.1   Holding Over. If Tenant holds over the Premises or
any part thereof after expiration of the Term, such holding over shall, at
Landlord's option, constitute a month-to-month tenancy, at a rent equal to one
hundred fifty percent (150%) of the Base Rent in effect immediately prior to
such holding over and shall otherwise be on all the other terms and conditions
of this Lease. This paragraph shall not be construed as Landlord's permission
for Tenant to hold over. Acceptance of Rent by Landlord following expiration or
termination shall not constitute a renewal of this Lease or extension of the
Term except as specifically set forth above. If Tenant fails to surrender the
Premises upon expiration or earlier termination of this Lease, Tenant shall
indemnify and hold Landlord harmless from and against all loss or liability
resulting from or arising out of Tenant's failure to surrender the Premises,
including, but not limited to, any amounts required to be paid to any tenant or
prospective tenant who was to have occupied the Premises after the expiration or
earlier termination of this Lease and any related attorneys' fees and brokerage
commissions.

                  18.9.2   Surrender. Upon the expiration or earlier termination
of this Lease, Tenant shall repair any damage to and restore the condition of
the Premises in accordance with Section 10.2. Tenant shall surrender the
Premises, together with all keys, to Landlord broom clean and in as good a
condition as when received, ordinary wear and tear and damage by fire or
casualty excepted. In addition, Tenant shall remove any and all debris from the
Common Area caused by Tenant and surrender any portion of the Common Area
regularly used by Tenant broom clean and in as good a condition as when Tenant's
use thereof commenced, ordinary wear and tear and damage by fire or casualty
excepted. Conditions existing because of Tenant's failure to perform
maintenance, repairs or replacements shall not be deemed "reasonable wear and
tear."

         18.10    Joint and Several. If Tenant consists of more than one person,
the obligation of all such persons shall be joint and several.

         18.11    Covenants and Conditions. Each provision to be performed by
Tenant hereunder shall be deemed to be both a covenant and a condition.

         18.12    Auctions. Tenant shall not conduct, nor permit to be
conducted, any auction upon the Premises without Landlord's prior written
consent. Landlord shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

         18.13    Consents. Except as otherwise provided elsewhere in this
Lease, Landlord's actual reasonable costs and expenses (including, but not
limited to, architects', attorneys', engineers' and other consultants' fees)
incurred in the consideration of, or response to, a request by Tenant for any
Landlord consent, including but not limited to, consents to an assignment, a
subletting or the presence or use of a Hazardous Material, shall be paid by
Tenant upon receipt of an invoice and supporting documentation therefor.
Landlord's consent to any act, assignment or subletting shall not constitute an
acknowledgment that no Event of Default or breach by Tenant of this Lease
exists, nor shall such consent be deemed a waiver of any then existing Event of
Default or breach, except as may be otherwise specifically stated in writing by
Landlord at the time of such consent. Except as otherwise set forth herein, the
failure to specify herein any particular condition to Landlord's consent shall
not preclude the imposition by Landlord at the time of consent of such further
or other conditions as are then reasonable with reference to the particular
matter for which consent is being given.

         18.14    Force Majeure. "Force Majeure" as used herein means delays
resulting from causes beyond the reasonable control of the other party,
including, without limitation, any delay caused by any action, inaction, order,

                                      -22-

<PAGE>

ruling, moratorium, regulation, statute, condition or other decision of any
private party or governmental agency having jurisdiction over any portion of the
Project, over the construction anticipated to occur thereon or over any uses
thereof, or by delays in inspections or in issuing approvals by private parties
or permits by governmental agencies, or by fire, flood, inclement weather,
strikes, lockouts or other labor or industrial disturbance (whether or not on
the part of agents or employees of either party hereto engaged in the
construction of the Premises), civil disturbance, order of any government, court
or regulatory body claiming jurisdiction or otherwise, act of public enemy, war,
riot, sabotage, blockage, embargo, failure or inability to secure materials,
supplies or labor through ordinary sources by reason of shortages or priority,
discovery of hazardous or toxic materials, earthquake, or other natural
disaster, delays caused by any dispute resolution process, or any cause
whatsoever beyond the reasonable control (excluding financial inability) of the
party whose performance is required, or any of its contractors or other
representatives, whether or not similar to any of the causes hereinabove stated.

         18.15    Mortgagee Protection. Tenant agrees to give any holder of any
mortgage or deed of trust secured by the Real Property, by registered or
certified mail or nationally recognized overnight delivery service, a copy of
any notice of default served upon the Landlord by Tenant, provided that, prior
to such notice, Tenant has been notified in writing (by way of service on Tenant
of a copy of assignment of rents and leases or otherwise) of the address of such
holder of a mortgage or deed of trust. Tenant further agrees that if Landlord
shall have failed to cure such default within thirty (30) days after such notice
to Landlord (or if such default cannot be cured or corrected within that time,
then such additional time as may be necessary if Landlord has commenced within
such thirty (30) day period and is diligently pursuing the remedies or steps
necessary to cure or correct such default), then the holder of any mortgage or
deed of trust shall have an additional sixty (60) days within which to cure or
correct such default (or if such default cannot be cured or corrected within
that time, then such additional time as may be necessary if such holder of any
mortgage or deed of trust has commenced within such sixty (60) day period and is
diligently pursuing the remedies or steps necessary to cure or correct such
default). Notwithstanding the foregoing, in no event shall any holder of any
mortgage or deed of trust have any obligation to cure any default of the
Landlord.

         18.16    Guarantors. The Guarantors, if any, shall each execute a
guaranty in a form provided by Landlord. It shall constitute an Event of Default
of the Tenant if any Guarantor fails or refuses, upon request to provide: (a)
evidence of the execution and continued enforceability of the guaranty,
including the authority of the party signing on Guarantor's behalf to obligate
Guarantor, and in the case of a corporate Guarantor, a certified copy of a
resolution of its board of directors authorizing the making of such guaranty,
(b) current financial statements, (c) an estoppel certificate, or (d) written
confirmation that the guaranty is still in effect as a valid binding obligation.

         18.17    Hazardous Substance Disclosure. Gasoline and other automotive
fluids, asbestos containing materials, maintenance fluids, copying fluids and
other office supplies and equipment, certain construction and finish materials,
tobacco smoke, cosmetics and other personal items may be present on the project.
Gasoline and other automotive fluids are found in the garage and parking areas
of the Project. Cleaning, lubricating and hydraulic fluids used in the operation
and maintenance of the Building are found in the utility areas of the Building
not generally accessible to Building occupants or the public. Many Building
occupants use copy machines and printers with associated fluids and toners, and
pens, markers, inks, and office equipment that may contain Hazardous Materials.
Certain adhesives, paints and other construction materials and finishes used in
portions of the Building may contain Hazardous Materials. The Building may from
time to time be exposed to tobacco smoke. Building occupants and other persons
entering the Building from time to time may use or carry prescription and
non-prescription drugs, perfumes, cosmetics and other toiletries, and foods and
beverages, some of which may contain Hazardous Materials. By its execution of
this Lease, Tenant acknowledges the notice set forth hereinabove.

         18.18    ADA Compliance. Notwithstanding Section 1.1 above, Landlord
warrants to Tenant that on the Commencement Date, the Premises (including any
improvements constructed by Landlord pursuant to the Work Letter) shall comply
with the requirements of the Americans with Disabilities Act [42 U.S.C. Section
12101 et seq.] ("ADA") as in effect and promulgated on the Commencement Date
(the "ADA Warranty"). The ADA Warranty shall not apply to any improvements or
alterations made by or at the request of Tenant (except as specifically set
forth in the Work Letter). Except as otherwise provided in this Lease, if the
Premises do not comply with the ADA Warranty, promptly after Landlord's receipt
of written notice from Tenant given within six (6) months after the Commencement
Date specifying in detail the nature and extent of such non-compliance,
Landlord, at Landlord's sole cost and expense, shall take such action as is
reasonably necessary to remedy such non-compliance.

                                      -23-

<PAGE>

         18.19    Addenda. The Addenda attached hereto, if any, and identified
with this Lease are incorporated herein by this reference as if fully set forth
herein.

         IN WITNESS WHEREOF, the parties have executed this Lease as of the date
set forth above.

"Landlord"                                              "Tenant"

CATELLUS DEVELOPMENT CORPORATION,                       SYNETICS SOLUTIONS INC.,
a Delaware corporation                                  an Oregon corporation

By:  Catellus Commercial Group, LLC,                    By:  KOKI NAKAMURA
      a Delaware limited liability company              ------------------------
      Its:  Duly Authorized Agent                       Name:  Koki Nakamura
                                                        Its:  Chairman and CEO

                                                        Date:  7/17/00

     By:  TED ANTENUCCI
     -----------------------
     Name: Ted Antenucci
     Title: Executive Vice President, Development

                                                        By:  Greg Marvell
                                                        -----------------------
Date: 7-20-00                                           Name:  Greg Marvell
                                                        Its:  President, COO

                                                        Date:  7/17/00

                                      -24-

<PAGE>

                                ADDENDUM TO LEASE

         THIS ADDENDUM TO LEASE ("Addendum") is attached to and constitutes an
integral part of the Lease between CATELLUS DEVELOPMENT CORPORATION, as
Landlord, and SYNETICS SOLUTIONS INC., Inc., as Tenant. The terms of this
Addendum shall be incorporated in the Lease for all purposes. In the event of a
conflict between the provisions of the Lease and the provisions of this
Addendum, this Addendum shall control.

         The following new Section is hereby added to the Lease which state in
their entirety as follows:

         19. Option to Extend Provided (i) Tenant is not in default under the
terms of this Lease at the time this renewal option is exercised or at the
commencement of the Extension Term (as hereinafter defined), (ii) Tenant is
occupying at least ninety percent (90%) of the Premises, including any expansion
space, and (iii) Landlord has not given more than two (2) notices of default in
any twelve (12) month period for nonpayment of monetary obligations, Tenant
shall have the option to renew this Lease for an additional period of sixty (60)
months ("Extension Term"). The Extension Term shall be on all the terms and
conditions of this Lease, except that Landlord shall have no additional
obligation for free rent, leasehold improvements or for any other tenant
inducements for the Extension Term. Base Rent during the Extension Term shall be
equal to the Base Rent set forth in the Basic Lease Information for one hundred
twenty-first (121st) month through the one hundred eightieth (180th) month of
the Lease Term and the Security Deposit will be increased to reflect any
increase in Base Rent payable under the Lease. There shall be no additional
extension terms beyond the Extension Term set forth herein. Tenant must exercise
its option to extend this Lease by giving Landlord written notice of its
election to do so no later than one hundred eighty (180) nor earlier than three
hundred sixty (360) days prior to the end of the initial Term (i.e. the last day
of the one hundred twentieth (120th) month). Any notice not given in a timely
manner shall be void, and Tenant shall be deemed to have waived its extension
rights. The extension option set forth herein is personal to Tenant and shall
not be included in any assignment of this Lease.

              TA                        KN
      -------------------         -----------------
      Landlord's Initials         Tenant's Initials

<PAGE>

                                    CATELLUS

                           Southshore Corporate Park

                               [MAP OF SITE PLAN]

                                  EXHIBIT A-1

<PAGE>

                               [MAP OF PREMISES]

                                  EXHIBIT A-2

<PAGE>

                               FIRST AMENDMENT TO
                    MULTI-TENANT INDUSTRIAL TRIPLE NET LEASE
                        AND COMMENCEMENT DATE MEMORANDUM

         THIS FIRST AMENDMENT TO MULTI-TENANT INDUSTRIAL TRIPLE NET LEASE AND
COMMENCEMENT DATE MEMORANDUM ("Amendment") is made and entered into as of the
19th day of December, 2000, by and between CATELLUS DEVELOPMENT CORPORATION, a
Delaware corporation ("Landlord"), and SYNETICS SOLUTIONS INC., an Oregon
corporation ("Tenant").

                                R E C I T A L S :

         A.       Landlord and Tenant are parties to that certain Multi-Tenant
Industrial Triple Net Lease dated as of July 20, 2000 (the "Lease"), pursuant to
which Landlord leased to Tenant certain premises located at Southshore Corporate
Park - Building A, 18870 NE Riverside Parkway, Gresham, Oregon, as more
particularly described in the Lease.

         B.       Landlord and Tenant desire (a) to acknowledge, among other
things, the Commencement Date (as such term is defined in the Lease) and the
rentable square footage of the Premises and (b) to amend the Lease on the terms
and conditions set forth below.

                               A G R E E M E N T :

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant hereby amend
the Lease and Landlord and Tenant agree as follows:

         1.       INCORPORATION; DEFINED TERMS. The Lease, including all
exhibits and schedules attached thereto, is incorporated into this Amendment by
this reference. All capitalized terms used and not otherwise defined in this
Amendment, but defined in the Lease, shall have the meaning set forth in the
Lease.

         2.       CONFIRMATION OF COMMENCEMENT DATE AND BASE RENT.
Notwithstanding any provision to the contrary contained in the Lease, Tenant's
obligation to pay Shell Base Rent (as set forth in the Basic Lease Information)
under the Lease, but subject to the terms of this Paragraph 2, commenced on
December 12, 2000. Concurrently with the execution of this Amendment, Tenant
shall pay to Landlord the amount of Twenty Two Thousand Two Hundred Twenty Nine
and 38/100 Dollars ($22,229.38) as Shell Base Rent for the month of December
2000. Tenant shall be under no obligation to pay the First Allowance Rent or the
Second Allowance Rent for December 2000. In no event shall Landlord's acceptance
of Shell Base Rent for the month of December accelerate the Commencement Date
which shall be

<PAGE>

conclusively deemed to be January 1, 2001, and, notwithstanding any provision to
the contrary contained in the Lease, the Term of the Lease shall commence on
such date. In accordance with the foregoing, rather than enter into a separate
Commencement Date Memorandum ("Memorandum"), as contemplated in Section 2 of the
Lease, the parties desire to incorporate the provisions of the Memorandum herein
as follows:

                  (a)      The Commencement Date, as defined in the Lease, is
         January 1, 2001.

                  (b)      The Premises contains 109,906 rentable square feet.

                  (c)      Base Rent is payable on the Commencement Date (i.e.,
         January 1, 2001) in accordance with the following rent schedule:

<TABLE>
<CAPTION>
 Months     Shell Base Rent  First Allowance Rent  Second Allowance Rent*  Total Base Rent
------------------------------------------------------------------------------------------
<S>         <C>              <C>                   <C>                     <C>
 1 - 24       $36,269.00           $5,343.00             $11,535.00          $53,147.00
------------------------------------------------------------------------------------------
 25 - 48      $38,487.00           $5,343.00             $11,535.00          $55,365.00
------------------------------------------------------------------------------------------
 49 - 72      $40,821.00           $5,343.00             $11.535.00          $57,699.00
------------------------------------------------------------------------------------------
 73 - 96      $43,307.00           $5,343.00             $11,535.00          $60,185.00
------------------------------------------------------------------------------------------
97 - 120      $45,944.00           $5,343.00             $11,535.00          $62,822.00
------------------------------------------------------------------------------------------
121-144+      $48,742.00           $       0             $        0          $48,742.00
------------------------------------------------------------------------------------------
145-168+      $51,710.00           $       0             $        0          $51,710.00
------------------------------------------------------------------------------------------
169-180+      $54,859.00           $       0             $        0          $54,859.00
------------------------------------------------------------------------------------------
</TABLE>

* Subject to prepayment pursuant to Section 9(d) of the Work Letter

+ Subject to the provisions of the Option to Extend set forth in Section 19 of
the Addendum to Lease

         3.       RIGHT OF FIRST OFFER ON ADJACENT SPACE. A new Section 20 is
hereby added to the Addendum to Lease as follows:

                  "20.     Right of First Offer

                           20.1 Provided that (i) no Event of Default has
                  occurred and is continuing under the Lease, (ii) Tenant is in
                  occupancy of at least ninety percent (90%) of the Premises,
                  (iii) Landlord has not given more than two (2) notices of
                  default in any twelve (12) month period for nonpayment of
                  monetary obligations, if at any time prior to the last twelve
                  (12) months of the Term Landlord intends to offer the
                  approximately 55,094 square feet portion of the Building not
                  occupied by Tenant pursuant to the Lease (the "Additional
                  Premises") for lease to third parties or to accept an offer of
                  a third party to lease the Additional Premises, Landlord shall
                  first give written notice to Tenant of the rental rate and
                  other material terms upon which Landlord is willing to lease
                  the Additional Premises ("Landlord's Lease Notice").
                  Landlord's Lease Notice shall constitute an offer to lease the
                  Additional Premises to Tenant at the rental rate and upon the
                  terms and conditions contained in Landlord's Lease Notice and
                  shall state the anticipated date of availability of the
                  Additional Premises. Tenant shall have five (5)

                                      -2-

<PAGE>

                  business days after receipt of Landlord's Lease Notice to
                  accept such offer. Tenant shall accept such offer, if at all,
                  only by delivery to Landlord of Tenant's irrevocable written
                  commitment to lease the Additional Premises at the rental rate
                  and upon the terms and conditions contained in Landlord's
                  Lease Notice (the "Expansion Commitment"). Notwithstanding the
                  foregoing, such first offer right of Tenant shall commence
                  only following the expiration or earlier termination of the
                  initial lease of the Additional Premises, including any
                  renewal, extension or expansion rights set forth in such
                  leases, regardless of whether such renewal, extension or
                  expansion rights are executed strictly in accordance with
                  their terms, or pursuant to a lease amendment or a new lease
                  (collectively, the "Superior Right Holders") with respect to
                  such Additional Premises. Tenant's right of first offer shall
                  be on the terms and conditions set forth in this Section 20.

                           20.2 Provided that no Superior Right Holder wishes to
                  lease the Additional Premises, if Tenant delivers to Landlord
                  the Expansion Commitment within such five (5) business day
                  period, all (but not part) of the Additional Premises shall be
                  leased to Tenant commencing on the date Landlord delivers
                  possession of the Additional Premises to Tenant and continuing
                  for a period of time coterminous with the remaining Term of
                  the Lease, including any options to extend the Term. Tenant
                  shall lease the Additional Premises upon the same terms,
                  conditions and covenants as are contained in the Lease except
                  that (i) the Base Rent for the Additional Premises shall be at
                  the rate set forth in Landlord's Lease Notice, and (ii) any
                  terms and conditions set forth in Landlord's Lease Notice that
                  are inconsistent with the terms and conditions of the Lease
                  shall control.

                           20.3 Except as otherwise set forth in Landlord's
                  Lease Notice, possession of the Additional Premises shall be
                  delivered to Tenant on an "as-is" basis and the construction
                  of improvements in the Additional Premises shall comply with
                  the terms of Section 10 and Exhibit G of this Lease. Landlord
                  shall prepare and Landlord and Tenant shall execute and
                  deliver a written agreement modifying and supplementing the
                  Lease and specifying that the Additional Premises are part of
                  the Premises and, except as otherwise specified in Landlord's
                  Lease Notice, subject to all of the terms and conditions of
                  the Lease.

                           20.4 Time is of the essence with respect to the
                  exercise by Tenant of its rights granted hereunder. In the
                  event Tenant fails to deliver to Landlord Tenant's Expansion
                  Commitment within the five (5) business day period prescribed
                  above, all rights of Tenant to lease the Additional Premises
                  shall terminate and Landlord shall have no further obligation
                  to notify Tenant of any proposed leasing of the Additional
                  Premises, and Landlord shall thereafter have the unconditional
                  right to lease the Additional Premises to third parties or to
                  accept offers from third parties to lease the Additional
                  Premises without further obligation to Tenant. The rights
                  granted to Tenant under this Section shall not apply to any
                  sales or similar transfers of the Additional Premises.
                  Notwithstanding anything to the contrary contained herein,
                  Tenant must elect to exercise its right of first offer, if at
                  all, with

                                      -3-

<PAGE>

                  respect to all of the space offered by Landlord to Tenant at
                  any particular time, and Tenant may not elect to lease only a
                  portion thereof.

                           20.5 The rights granted to Tenant under this Section
                  20 are personal to Tenant, may not be exercised by or assigned
                  to any person or entity other than Tenant, and shall terminate
                  and be of no further force or effect upon any assignment of
                  this Lease or subletting of the Premises unless specifically
                  agreed and consented to in writing by Landlord in connection
                  with any such sublease or assignment."

         4.       PAYMENT OF ABOVE-STANDARD TENANT IMPROVEMENT COSTS. Pursuant
to Section 5(b) of the Work Letter, Landlord and Tenant have previously approved
the Work Cost Estimate dated December 18, 2000, attached hereto as Exhibit A
(the "Work Cost Statement"). The Work Cost Statement provides that the total
costs associated with the completion of the Tenant Improvements are to be
approximately Six Million Six Hundred Eighty Thousand Nine Hundred Twenty Seven
Dollars ($6,680,927.00) (the "Total TI Costs"). In connection with the payment
of the Total TI Costs, Landlord and Tenant hereby acknowledge that (i) the
Allowance of One Million Two Hundred Thousand Dollars ($1,200,000.00) has been
applied toward the Total TI Costs, and (ii) Tenant has previously paid to
Landlord the Tenant Contribution pursuant to Section 9(a) of the Work Letter in
the amount of Five Million Dollars ($5,000,000.00) which has also been applied
toward the Total TI Costs. As of the date of this Amendment, the unpaid balance
of the Total TI Costs set forth in the approved Work Cost Statement is Four
Hundred Eighty Thousand Nine Hundred Twenty Seven Dollars ($480,927.00).
Landlord and Tenant hereby agree that, notwithstanding any provision to the
contrary contained in the Lease (including, without limitation, Section 9(b) of
the Work Letter), Tenant shall pay to Landlord the balance of the Total TI Costs
(which the parties estimate to be approximately $480,927.00) in accordance with
the following schedule:

                  (a)      On or before January 15, 2001, Tenant shall pay to
         Landlord in Immediately Available Funds the amount of Four Hundred
         Twenty Thousand Nine Hundred Twenty Seven Dollars ($420,927.00).

                  (b)      On or about February 15, 2001, Tenant shall pay to
         Landlord in Immediately Available Funds the balance of the Total TI
         Costs, which the parties currently estimate to be approximately Sixty
         Thousand Dollars ($60,000.00), all in accordance with the terms and
         conditions set forth in the Lease; provided, however, any cost savings
         or cost increases shall be reconciled in connection with this final
         installment of the Total TI Costs.

If an any time Tenant does not timely make any installment of the outstanding
Total TI Costs to Landlord in accordance with the foregoing, such failure shall
constitute a Tenant Delay and Landlord may, but shall not be obligated to,
instruct the Contractor to stop all Work until such time as Tenant has fulfilled
its obligations hereunder to make payment(s) to Landlord. Tenant's failure to
pay any installment of the Total TI Costs in accordance with schedule set forth
above shall constitute an Event of Default under the Lease.

                                      -4-

<PAGE>
         5.       MISCELLANEOUS.

                  (a)      Effect of Amendments. Except to the extent the Lease
is modified by this Amendment, the remaining terms and provisions of the Lease
shall remain unmodified and in full force and effect. In the event of conflict
between the terms of the Lease and the terms of this Amendment, the terms of
this Amendment shall prevail.

                  (b)      Entire Agreement. This Amendment embodies the entire
understanding between Landlord and Tenant with respect to its subject matter and
can be changed only by an instrument in writing signed by Landlord and Tenant.

                  (c)      Counterparts. This Amendment may be executed in
counterparts, each of which shall be deemed an original, but all of which,
together, shall constitute one in the same Amendment.

                  (d)      Corporate and Partnership Authority. If Tenant is a
corporation or partnership, or is comprised of either or both of them, each
individual executing this Amendment for the corporation or partnership
represents that he or she is duly authorized to execute and deliver this
Amendment for the corporation or partnership and that this Amendment is binding
upon the corporation or partnership in accordance with its terms.

                  (e)      Attorneys' Fees. The provisions of the Lease
respecting payment of attorneys' fees shall also apply to this Amendment.

"LANDLORD"                                  "TENANT"

CATELLUS DEVELOPMENT                        SYNETICS SOLUTIONS INC.,
CORPORATION, a Delaware corporation         an Oregon corporation

By:  Catellus Commercial Group, LLC,
     a Delaware limited liability company   By: GREG MARVELL
     Its:  Duly Authorized Agent                --------------------------------
                                                Name:  Greg Marvell
                                                Its:   President
     By
        ------------------------------
        Name: Ted Antenucci                 By: KOKI NAKAMURA
        Its:  Executive Vice President          --------------------------------
                                                Name: Koki Nakamura
                                                Its:  Chairman & CEO

                                      -5-

<PAGE>

SYNETICS
WORK COST ESTIMATE FOR LEASED PREMISES
LOCATED AT 18870 NE RIVERSIDE PARKWAY, GRESHAM, OR

<TABLE>
<CAPTION>
ARCHITECTURAL/ENGINEERING GROUP MACKENZIE/INTERFACE ENG.                                   6/14/00              12/18/00
<S>                                                                                     <C>                  <C>
Architectural/Interiors                                                                 $   87,000.00        $   87,000.00
Structural                                                                              $   27,000.00        $   27,000.00
Mechanical/Electrical                                                                   $  132,000.00        $  132,000.00
Reimbursable Expenses(prints, copying, faxing, mileage)                                 $   16,500.00        $   16,500.00
Add. Design/Project mgmt. Fees(attached letter of 07/18/00)                             $   24,220.00        $   24,220.00
Interior design and finish services                                                                          $    9,100.00
Delete powder coat and metal fab. Misc. revisions                                                            $   11,700.00
SUBTOTAL                                                                                $  286,720.00        $  307.520.00
PRELIM. PERMIT FEES(ACTUAL FEES MAY VARY )

Building                                                                                $   20,939.00        $   20,939.00
Mechanical                                                                              $    6,176.00        $    6,176.00
Plumbing                                                                                $    1,815.00        $    1,930.00
Electrical                                                                              $    6,066.00        $    5,427.00
Fire Alarm                                                                              TBD                  TBD
Low Voltage                                                                             $       43.00        $      475.00
Fire Sprinklers                                                                         $      533.00        $      533.00
Traffic Impact Fee- add. 2nd floor                                                      $   19,373.00        $   19,373.00
SUBTOTAL                                                                                $   54,944.00        $   54,853.00
CDC ADMINISTRATIVE AND COORDINATION FEE
5% of design, permit and construct Tenant Improvement Work                              $  286,817.00        $  316,567.95

CONSTRUCTION COST FROM MCCORMACK PACIFIC                                                $5,187,177.00        $5,217,821.00
Allowance for Powder Coat, Metal Fab and Mech Systems                                   $  200,000.00             N.A.
Change order No. 1 Approved 8/24/00                                                                          $  148,686.00
Change order No. 2 Approved 9/30/00                                                                          $  344,934.00
Change order No. 3 Approved 10/26/00                                                                         $  188,222.00
Change order No. 4 Approved 11/13/00                                                                         $   20,643.00
Change order No. 5 Approved 11/28/00                                                                         $  (24,505.00)
Contingency:                                                                            $  259,358.00        $   60,000.00
Testing and Inspections                                                                 $    7,500.00        $   13,185.00
Subtotal                                                                                $5,654,035.00        $5,968,986.00
POTENTIAL ADDITIONAL COST
Front Entry Allowance ( formerly carried at $100,000)                                                        By Synetics
Misc. revisions still being estimated (Allowance)                                                            $  33,000.00
Subtotal                                                                                                     $  33,000.00

Est. Total Work Cost: Design, permits, Const., CDC., Poten. Costs                       $6,282,516.00        $6,680,926.95
Synetics'$5MM prog. pay received and Catellus $1.2MM contribution                                            $  (6,200,000)
Amount due per terms of lease                                                                                $  480,926.95
                                                                                                             -------------
Partial progress payment for project work completed                                                          $     420,927
                                                                                                             -------------
Synetics to pay any remaining balance upon final const. accounting                      Approx.              $   60,000.00
                                                                                                             -------------
Final costs should be done in early Feb. 2001
</TABLE>

                                   EXHIBIT A

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