Document:

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                                                                   EXHIBIT 10.12

                                 PROMISSORY NOTE

$2,000,000                                                      December 7, 1991

        FOR VALUE RECEIVED, the undersigned, PI MEDICAL CORPORATION (the
"Company"), hereby promises to pay to the order of RICHARD G. SASS (the
"Lender"), the principal sum of $2,000,000 (or such lesser amount as shall equal
the aggregate unpaid principal amount of the advances noted on the attached
Schedule A), in lawful money of the United States of America on December 7, 2001
(the "Final Payment Date"), along with any remaining unpaid interest. The
interest rate on the amounts borrowed shall be equal to the federal long term
rate as defined in Internal Revenue Code Section 1274(d). Interest shall be
payable annually, on December 1 of each year, but may be deferred and added to
principal if certain cash flow requirements are not met, as set forth in a Loan
Agreement between Lender and the Company, dated as of the date hereof, the terms
of which are incorporated herein.

        The amount and date of each advance made by Lender to the Company, and
each payment or prepayment made on account of the principal of this Note, shall
be recorded by Lender and endorsed by Lender on the attached Schedule A.

        The Company may repay any amount of principal at any time prior to the
Final Payment Date, without penalty.

        If the Company fails to pay principal or interest when due, the Company
will pay Lender such further amounts as shall be sufficient to cover the costs
and expenses of collection, including, without limitation, reasonable attorneys'
fees, expenses and disbursements.

        This Note shall be governed by, and construed and enforced in accordance
with, the laws of the State of Oregon, without regard to choice of law rules.

        The debt evidenced by this Note is secured by a security interest in the
Company's assets pursuant to a Security Agreement dated as of the date hereof.
Failure to pay principal or interest when due, or the occurrence or existence of
an event of default under the Security Agreement or in any other instrument
securing and/or evidencing this indebtedness, shall constitute an event of
default under this Note and shall entitle Lender, at its option, to accelerate
the then outstanding indebtedness hereunder and take such other action as may be
provided for in the Loan Agreement or the Security Agreement. Failure to
exercise such option on the occurrence of any event of default shall not prevent
the exercise of such option upon the reoccurrence of such event of default or
upon the occurrence of any other event of default. In the event of default in
payment of indebtedness under this Note, Lender shall be entitled to all rights
and remedies available to a lender under the Oregon Uniform Commercial Code.

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        To the extent permitted by applicable law, the Company, for itself and
its legal representatives, successors and assigns, expressly waives presentment,
demand, protest, notice of dishonor, notice of nonpayment, notice of protest,
diligence in collection and the benefit of any exemption or insolvency laws. The
Company also waives any rights to any stay of execution as well as all rights to
setoff.

                                      PI MEDICAL CORPORATION

                                      By:    /s/ RICHARD MURIE
                                             ---------------------------------
                                      Name:
                                      Title:  Vice President and
                                              General Manager<PAGE>   1

                                                                   EXHIBIT 10.13

                            NOTE EXTENSION AGREEMENT

This Agreement is made and entered into this 23rd day of July 1999, by and
between MHL DEVELOPMENT CORPORATION (F/K/A MICROHELIX LABS INC.) an Oregon
corporation and RICHARD G. SASS, an Oregon resident HEREIN AFTER "MAKERS" and
THE CONFEDERATED TRIBES OF THE GRAND RONDE COMMUNITY OF OREGON herein after
called "HOLDER."

WHEREAS MAKERS did execute a Promissory Note dated July 22, 1998 in the amount
of Six Hundred Sixty Seven thousand Five Hundred Dollars ($667,500.00) in favor
of MAKER, and;

WHEREAS MAKERS desires to renew and extend said Note to January 22, 2000 and
HOLDER has agreed, and;

WHEREAS MAKERS agree to pay all accrued interest on the Note current by July 23,
1999 and pay future quarterly interest payments on October 22, 1999 and January
22, 2000, and;

NOW, THEREFORE, in consideration of the herein stated mutual covenants and
promises, and other good and valuable consideration, it is AGREED AS FOLLOWS:

        1.      The above referenced Promissory Note is hereby extended to
                January 22, 2000 whereupon all accrued interest and principal
                shall be due in full.

        2.      Such extension is granted subject to HOLDER bringing said Note
                current and paying accrued interest on said Note to July 22,
                1999.

        3.      Such extension is granted subject to HOLDER'S preservation and
                retention of its security position in the form of the now
                existing UCC-1 with all rights and remedies as contained therein
                including, but not limited to, the right to take possession of
                the therein named property.

        4.      Nothing in this Agreement shall otherwise impair or modify the
                herein cited Promissory Note except as to the due date as
                therein stated and consistent with the terms hereof.

Dated this 6th day of Oct., 1999.

AGREED TO BY:
MHL DEVELOPMENT CORPORATION (F/K/A MICROHELIX LABS, INC.)

/s/ RICHARD G. SASS
---------------------------------------
by:  Richard G. Sass
its President

/s/ RICHARD G. SASS
---------------------------------------
Richard G. Sass, Individually

<PAGE>   2

AGREED TO BY:
THE CONFEDERATED TRIBES OF THE GRAND RONDE COMMUNITY OF OREGON

/s/ ROBERT SAUNDERS
---------------------------------------
by:  Robert Saunders
its:  Finance Officer

                                       2<PAGE>   1

                                                                   EXHIBIT 10.14

                     PROMISSORY NOTE AND SECURITY AGREEMENT

$383,885.00                                                     Portland, Oregon
                                                               December 15, 1999

        FOR VALUE RECEIVED, mHL Development Co, Inc. ("mHL") promises to pay to
the order of Richard G. Sass ("RGS") in lawful money of the United States of
America, the principal amount of Three Hundred Eighty Three Thousand, Eight
Hundred Eighty Five Dollars ($383,885.00) together with interest on such amount
from December 15, 1999, at the interest rate of twelve percent (12%) per annum
(the "Interest Rate"). Interest shall be computed on the outstanding principal
amount on the basis of a 365-day year and actual days elapsed. mHL shall pay in
full the aggregate unpaid principal amount of this Note, together with all
accrued and unpaid interest thereon, on or before December 31, 2002.

        This Note may be prepaid, at any time and from time to time, in whole or
in part, without penalty or premium. Any prepayment shall include accrued and
unpaid interest to the date of prepayment on the amount prepaid. All payments
shall be made directly to the RGS in immediately available funds.

        As security for the amounts due under this Note, mHL pledges and grants
to RGS a security interest in the Fixed Assets and Inventory purchased by mHL
from Alcatel Cable Systems, N.A. Such security is itemized in detail in the
Asset Purchase Agreement signed by mHL and Alcatel.

        In the event that RGS uses his own or an outside attorney to construe,
interpret, or enforce any of the provisions of this Note or take any action in
any bankruptcy, insolvency or similar proceeding affecting creditors' rights
generally (including, without limitation, prosecution of a motion for relief
from stay, proposal of a Chapter 11 plan, objection to a disclosure statement or
a Chapter 11 or 13 plan, or objection to proposed use, sale or lease of
property) or in mediation or arbitration, RGS shall be entitled to recover from
mHL its reasonable attorney fees and other costs incurred regardless of whether
any legal proceeding is commenced. If any legal action, arbitration or other
proceeding is brought, the prevailing party shall be entitled to recover its
reasonable attorney fees and other costs incurred in connection therewith, both
at trial and on any appeal therefrom or petitions for review thereof.

        All parties to this Note hereby waive presentment, dishonor, notice of
dishonor, and protest. All parties to this Note hereby consent to, and the
holder of this Note is hereby expressly authorized to make, without notice, any
and all renewals, extensions, modifications or waivers of the time for or the
terms of payment of any sum or sums due under this Note, or under any documents
or instruments relating to or securing this Note, or the performance of any
covenants, conditions or agreements hereof or thereof, or the taking or release
of collateral securing this Note. The liability of all parties on this Note
shall not be discharged by any action consented to above taken by any holder of
this Note.

<PAGE>   2

        MHL may not assign or transfer this Note without the prior written
consent of RGS. This Note is made with reference to, and is to be construed in
accordance with the laws of the State of Oregon, exclusive of choice of law or
conflicts of law rules or principles.

        MHL executes this Note as of the date first above written and
acknowledges receipt of a copy of this Note.

                                       mHL Development Co, Inc.

                                       By: /s/ JANE K. CONNER
                                           -------------------------------------
                                           Name:  Jane K. Conner
                                           Title:  Chief Financial Officer

                                       Richard G. Sass

                                           /s/ RICHARD G. SASS
                                       -----------------------------------------
                                       Name:  Richard G. Sass

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