Document:

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                             OFFICE/WAREHOUSE LEASE

THIS INDENTURE of lease, entered into this 14 day of April, 1997, by and between
AMBERJACK, LTD., an Arizona corporation, hereinafter referred to as "Lessor",
and MANUFACTURER'S SERVICES LIMITED - ROSEVILLE, INC., a Minnesota corporation,
hereinafter referred to as "Tenant".

                                  DEFINITIONS:

"Property" - That certain real property located in the City of Arden Hills,
County of Ramsey and State of Minnesota and legally described on Exhibit A
attached hereto and made a part hereof, including all buildings and site
improvements located thereon all in accordance with the site plan thereof
attached hereto and incorporated herein as Exhibit B.

"Premises" - All of that certain office/warehouse building to be constructed by
Lessor as set forth herein and, upon completion, containing in the aggregate
approximately 154,264 square feet located upon the Property, consisting of
approximately 105,364 square feet of production area, 30,000 square feet office
space and 18,900 square feet of warehouse space, as measured from the outside
walls of the Premises. The Premises includes exclusive access to and exclusive
use of all parking areas, driveways, truck docks and landscaped areas on the
Property, and all licenses and easements appurtenant to the Property. The
Premises are to have the direct and unrestricted legal right of access on foot,
by private and commercial vehicles and trucks to the public ways for ingress and
egress.

                              W I T N E S S E T H:

                                      TERM:

1. For and in consideration of the rents, additional rents, terms, provisions
and covenants herein contained, Lessor hereby lets, leases and demises to Tenant
the Premises for the initial term of one hundred twenty (120) months commencing
thirty (30) days after Lessor has provided written notice to Tenant that
"Lessor's Work" and the "Tenant Improvements" (as hereinafter defined) are
substantially complete, accompanied by a temporary or permanent certificate of
occupancy that permits the Tenant's manufacturing operations (sometimes called
the "Commencement Date") and expiring at the end of the tenth (10th) "Lease
Year," as hereinafter defined (the "Expiration Date"). If the Certificate of
Occupancy delivered by Lessor is temporary only, Lessor shall within a
reasonable period procure a permanent certificate of occupancy for Tenant at no
cost to Tenant. At the time the actual Commencement Date is determined, the
parties agree to confirm in writing the specific Commencement Date and
Expiration Date, which written confirmation shall become a part of this Lease.
As used herein, the term "Lease Year" shall mean each successive period of
twelve (12) consecutive calendar months, commencing on each anniversary of the
Commencement Date during the Lease Term or, if the Commencement Date falls on a
day

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other than the first day of the month, each anniversary of the first day of the
first full calendar month following the Commencement Date.

                              OPTIONS TO RENEW:

2.    (a) Options. In addition to the initial Lease Term, and provided that no
      "Material Tenant Default" (as hereinafter defined) shall have occurred and
      be then continuing, Tenant shall have the option ("Renewal Option") to
      extend the term of the Lease for up to two (2) additional terms of five
      (5) years each (the "Option Periods") immediately following the initial
      term of this Lease. Each Renewal Option shall expire on the later of (i) a
      date two hundred seventy (270) days prior to the expiration of the initial
      lease term or the then current Option Period as applicable, or (ii) ten
      (10) days after written reminder notice from the Lessor given not earlier
      than thirty (30) days prior to the date set forth in subsection (i) above,
      unless prior to such date, Tenant shall give Lessor written notice of its
      unconditional election to exercise the Renewal Option (the "Notice to
      Extend"). Upon exercise as required hereunder, the Lease Term shall
      thereupon be deemed to be automatically renewed and extended for the
      Option Period without the need for further act by Lessor or Tenant upon
      all the same terms and conditions except as to Base Rent which shall be at
      the then current "Market Rate", determined as set forth in subsection (b)
      below. The initial term of this Lease and, if each Renewal Option is
      exercised, the Option Periods are hereby collectively referred to herein
      as the "Lease Term." If Tenant fails to exercise the first five year
      Renewal Option, the second Renewal Option shall lapse and be of no further
      force and effect. The Renewal Options are personal to Tenant and may not
      be assigned to, and shall not be exercisable by, any third party. For
      purposes of this Section 2(a), the term "Material Tenant Default" shall
      mean a Tenant Default (as defined in Section 2.0 hereof) in any way
      relating to (i) the payment of any Base Rent, Additional Rent or any other
      amount payable by Tenant hereunder; (ii) Tenant's obligations hereunder
      with respect to the care and maintenance of the Property or the Premises;
      or (iii) any of Tenant's obligations under Section 14 (Use), 18 or 19
      (Insurance), 24 (Assignment and Subletting) or 37 (Hazardous Material).

      (b) Market Rate During Option Period. The term "Market Rate" shall mean
      the rental per annum per square foot (net of any share of Operating
      Expenses or Real Estate Taxes payable by Tenant) prevailing at the time in
      arms-length industrial and office warehouse lease transactions in
      comparable Class A, full-service industrial and office warehouse buildings
      in the Minneapolis-St. Paul metropolitan area, taking into account all
      relevant factors with respect to the Option Period, including length of
      term, tenant creditworthiness, size of the premises, extent of leasehold
      improvements, the basis for tenant payment of taxes, operating expenses,
      utilities, parking, allowances, age of the facility, and other factors
      affecting rent in the market.

      Within thirty (30) days of receipt by Lessor of the Notice to Extend,
      Lessor shall provide Tenant with Lessor's good faith estimate of the
      Market Rate payable during the applicable Option Period. If Tenant agrees
      with Lessor's estimate of the Market Rate, or if Lessor and Tenant reach
      an agreement that a different figure more accurately reflects the Market
      Rate, then such agreed sum shall constitute the Market Rate during such
      applicable Option

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      Period. If Lessor and Tenant have not agreed on the Market Rate at least
      six (6) months prior to the expiration of the then current Lease Term,
      then Tenant may require evaluations by licensed real estate professionals
      to determine the Market Rate by delivering written notice ("Evaluation
      Notice") to Lessor at least six (6) months prior to the Expiration Date or
      at least six (6) months prior to expiration of the then current Option
      Period, as applicable. Failure of Tenant to require such evaluations
      shall, in the absence of a different agreement by Lessor and Tenant at the
      time, result in a forfeiture of the Renewal Option. Upon delivery of such
      Evaluation Notice to Lessor, both Lessor and Tenant shall be bound to the
      Option Period and to the Market Rate as determined by the evaluation by
      the licensed real estate professional as hereinafter provided in paragraph
      (c) of this Section 2.

      (c) Evaluation Procedure. Within ten (10) days after Tenant notifies
      Lessor that it is requiring evaluations as stated above, each party at its
      cost and by giving notice to the other party, shall appoint a licensed
      commercial real estate professional ("Real Estate Professional") with at
      least ten (10) years experience leasing similar commercial industrial and
      office warehouse building properties in the Minneapolis-St. Paul
      metropolitan area to evaluate the Market Rate at that time. If either
      party fails to appoint a Real Estate Professional within the allotted
      time, the single Real Estate Professional appointed by the other party
      shall be the sole Real Estate Professional. If a Real Estate Professional
      is appointed by each party and the Real Estate Professionals so appointed
      area unable to agree upon the Market Rate within thirty (30) days after
      the appointment of the second, the two Real Estate Professionals shall
      appoint a third similarly qualified Real Estate Professional within five
      (5) days after the expiration of that thirty (30) day period. The third
      Real Estate Professional shall be a person who has not previously been
      employed by Tenant or Lessor in any capacity. The third Real Estate
      Professional shall complete his evaluation within fifteen (15) days after
      appointment. The Market Rate determined by a majority of the three Real
      Estate Professionals shall be the "Market Rate" during such applicable
      Option Period. If a majority are unable to agree within the allotted time,
      the two evaluations of Market Rate that are nearest to one another in
      amount shall be added together and divided by two (2), and the resulting
      quotient shall be the agreed Market Rate. Notwithstanding anything
      contained herein to the contrary, the Market Rate shall in no event be
      less than the Annual Base Rent payable in the last Lease Year of the then
      current term of the Lease. Tenant shall pay the fees of the Real Estate
      Professional it appoints; Lessor shall pay the fees of the Real Estate
      Professional it appoints; and the fees of any third Real Estate
      Professional shall be paid equally by Lessor and Tenant. If only one Real
      Estate Professional serves, the costs and fees shall be paid equally by
      Lessor and Tenant.

      Both Lessor and Tenant shall be bound by the decision of the aforesaid
      Real Estate Professional as to the Market Rate.

                                 LESSOR'S WORK:

3. Lessor shall construct, at its cost and expense and with no right of
reimbursement from Tenant other than the charges provided for in Sections 4, 5
and 6 of this Lease, all

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improvements set forth and described on the Outline Specifications dated March
26, 1997 prepared by Welsh Construction Corp. ("Contractor"), a copy of which is
attached hereto as Exhibit C and made a part hereof ("Lessor's Work"). Lessor
and Tenant have each approved those certain plans and specifications listed and
described as Exhibit C-1 attached hereto and incorporated herein ("Lessor's Work
Plans"). Any reasonable changes in Lessor's Work which are necessary in order to
comply with applicable laws, rules, regulations, orders or requirements of any
governmental body having jurisdiction, or of the local board of Fire
Underwriters or other local bodies exercising similar functions, shall not
require the approval of Tenant, nor shall any such changes affect, change or
invalidate this Lease. Notwithstanding the foregoing, any such change which
materially or adversely limits, restricts or diminishes Tenant's use and
enjoyment of the Premises for the purposes specified herein shall require
Tenant's approval, such approval shall not be unreasonably withheld, delayed or
conditioned. Lessor shall in any event provide written notice of any and all
such changes required by applicable law, whether or not Tenant's consent thereto
is required. Lessor represents and warrants that no utility easements over
abutting lands are required to bring utilities from public right of way to the
Property.

                             TENANT IMPROVEMENTS:

4. Attached hereto as Exhibit D is a copy of the Outline Specifications dated
February 3, 1997 prepared by Contractor and relating to all work other than
Lessor's Work required to be constructed or performed on the Premises necessary
to render the Premises ready for occupancy by Tenant (the "Tenant
Improvements"). Attached hereto as Exhibit D-1 is a description of plans and
specifications which have been approved by Lessor and Tenant for the Tenant
Improvements (the "Tenant Improvement Plans"). Any material changes in the
Tenant's Improvement Plans shall require the prior written approval of Tenant
and Lessor. Lessor's Work and the Tenant Improvements shall be performed in a
good and workmanlike manner, using new, first class materials, and in compliance
with all applicable laws and regulations of the federal, state and municipal
governments, or any department of division thereof.

Lessor shall complete Lessor's Work and the Tenant Improvements (collectively,
the "Project"), along with all driveways, parking areas and other improvements
to the Property described and depicted on Exhibit B hereto and deliver the same,
in operational and broom clean condition, along with a temporary certificate of
occupancy to Tenant that permits Tenant's manufacturing operations, on or before
August 1, 1997 (the "Target Date"), subject to "Force Majeure", as defined in
Section 38 hereof. Upon completion of Lessor's Work and the Tenant Improvements,
the Premises shall be in conformance with all applicable ordinances, statutes,
regulations and other laws. Lessor shall provide to Tenant periodic written
reports of the status of completion of Lessor's Work and Tenant Improvements and
updates on the projected Target Date, given not less frequently than once per
month.

In the event that Lessor shall fail to complete the Project and deliver the same
to the Tenant as required hereunder as of December 1, 1997, the Tenant shall be
entitled to a credit of one (1) day of free Base Rent, allocable at the
beginning of the Lease Term, for each day beyond December 1, 1997 until the
Project is delivered to Tenant as required under this Section 4,

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excluding any days of delay either (i) due to Force Majeure, and (ii) caused by
Tenant, its agents, employees and contractors, subject to a maximum of one full
month of free Base Rent.

Notwithstanding anything contained herein to the contrary, in the event that,
for reasons other than Force Majeure, or delays caused by Tenant, its agents,
employees and contractors, Lessor fails to complete the Project and deliver the
same to the Tenant as required hereunder on or before March 31, 1998, Tenant
shall be entitled to terminate this Lease by written notice to the Lessor given
prior to February 1, 1998. Such termination shall be effective if Lessor falls
to deliver to Tenant prior to March 31, 1998 at least a temporary certificate of
occupancy which permits manufacturing operations at and from the Premises. If
Lessor falls to do so, this Lease shall be terminated and neither party shall
have further liability to the other hereunder. Without limiting the generality
of the foregoing, upon such termination Lessor shall have no obligation to
return or repay to Tenant any previously paid installments of Tenant's TI
Contribution.

Lessor shall assign to Tenant all guarantees and warranties in connection with
Lessor's Work and Tenant Improvements, including without limitation a one (1)
year warranty of Lessor's Work and the Tenant Improvements from Contractor, to
the extent such guarantees and warranties relate to portions of the Property
which are required to be maintained and repaired by Tenant herein. Attached
hereto as Exhibit E is a list of all warranties which Lessor shall require in
connection with the Project. Lessor shall use reasonable efforts to obtain all
applicable warranties from contractors performing work under the Tenant
Improvement Plans. Tenant acknowledges that, subject to Lessor's repair and
maintenance obligations set forth herein, Lessor makes no warranties to Tenant
of any nature whatsoever hereunder with respect to the Premises. Lessor agrees
to cooperate reasonably with Tenant in assigning any claims Lessor may have
against Lessor's Architect or the Contractor as to any negligence or willful
misconduct of such parties to the extent Tenant is damaged thereby.

Upon any dispute between Tenant and Lessor with respect to the completion of
Lessor's Work, and/or the Tenant Improvements or the compliance thereof with
applicable laws and with Exhibits C-1 and D-1 as the same may be amended by
written agreement of Lessor and Tenant, such dispute shall be submitted to
Genesis Architecture ("Lessor's Architect") and The Tegra Group ("Tenant's
Architect") for their joint decision, which joint decision shall be final and
binding on both Lessor and Tenant. If any such dispute shall not be resolved by
such architects, such dispute shall be submitted to arbitration, to be conducted
by and in accordance with the rules of the American Arbitration Association.

Lessor's Work and the Tenant Improvements shall be completed by Contractor.
Based on the approved Tenant Improvement Plans, the total cost of constructing
the Tenant Improvements is Two Million Seven Hundred Thousand Seven Hundred
Forty Seven Hundred Forty and 00/100 Dollars ($2,700,740.00), of which Lessor
agrees to pay the sum of One Million Fifteen Thousand Seven Hundred Forty and
00/100 Dollars ($1,015,740.00). The balance of the cost of constructing the
Tenant Improvements of One Million Six Hundred Eighty-Five Thousand and 00/100
Dollars ($1,685,000.00) shall be paid by Tenant ("Tenant's TI Contribution") in
accordance with the following schedule:

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      (i)   The sum of Two Hundred Fifty Thousand and 00/100 Dollars
            ($250,000.00) shall be paid on May 31, 1997;

      (ii)  The additional sum of Two Hundred Fifty Thousand and 00/100 Dollars
            ($250,000.00) shall be paid on June 30, 1997;

      (iii) The additional sum of Two Hundred Fifty Thousand and 00/100 Dollars
            ($250,000.00) shall be paid on July 31, 1997; and

      (iv)  The balance shall be paid within five (5) days after delivery to
            Tenant of at least a temporary certificate of occupancy which
            permits manufacturing operations at and from the Premises.

Each payment required above shall be conditioned upon receipt from Lessor's
Architect of written certification that the Lessor has theretofore incurred
costs for the Tenant Improvements in an amount equal to 1.6 (i.e., $2,700,740
divided by $1,685,000) times the amount of the payment then due from Tenant plus
all previous payments made to Lessor as part of Tenant's TI Contribution, and
approval of such certification from Tenant's Architect, which approval shall not
be unreasonably withheld, delayed or conditioned.

Lessor shall consider in good faith any change orders requested by Tenant in
writing, whether to Lessor's Work or the Tenant Improvements, so long as (i)
Tenant pays to Lessor in cash any extra design or construction cost arising
therefrom and (ii) either Lessor determines that such change orders shall not
delay completion of Lessor's Work or the Tenant Improvements or Tenant consents
in writing to delays caused thereby.

In order to secure the payment of Tenant's TI Contribution, Tenant agrees,
within thirty (30) days of the date hereof, to provide to Lessor an irrevocable
letter of credit in the amount of $1,700,000 from a recognized lending
institution, and on terms, acceptable to Lessor in its reasonable discretion.

                                   BASE RENT:

5. Tenant agrees to pay to Lessor, at the address stated in Section 7 below, or
otherwise as requested by Lessor in writing, as base rent ("Base Rent"),
exclusive of any other charge provided for in this Lease to be paid by Tenant,
the following sums for the following periods. Base Rent shall be payable in
equal monthly installments, in advance, commencing on the Commencement Date and
continuing on the first day of each subsequent month during the Lease Term. In
the event the Commencement Date occurs on a day other than the first day of a
month, or terminates on a day other than the last day of a month, the rent
payable during such first or last month shall be adjusted on a pro rata basis.

                                                 Monthly
      Applicable Period                         Base Rent
      -----------------                         ---------

(a)   From Commencement Date through           $63,633.90
      last day of fifth Lease Year

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(b)   From first day of sixth Lease Year       $70,190.12
      through last day of tenth Lease Year

It is expressly agreed and understood that the full amount of the Base Rent
pursuant to this Section 5 hereof shall be absolutely payable to Lessor by
Tenant at the time and in the manner specified herein without any set off,
deduction, or abatement of any nature whatsoever except as otherwise expressly
set forth in this Lease, without regard to whether Tenant occupies the Premises
during all or any part of the Lease Term.

                               ADDITIONAL RENT:

6.    Tenant shall pay to Lessor throughout the term of this Lease the
      following:

      (a) Tenant shall pay a sum equal to one hundred percent (100%) of the Real
      Estate taxes. The term "Real Estate Taxes" shall mean all real estate
      taxes, all assessments and any taxes in lieu thereof which may be levied
      upon or assessed against the Property and all Improvements thereon.
      Tenant, in addition to all other payments to Lessor by Tenant required
      hereunder shall pay to Lessor, in each year during the term of this Lease
      and any extension or renewal thereof, such real estate taxes and
      assessments which are payable in such year, in the manner and at the times
      set forth below. Lessor agrees that all special assessments shall be
      amortized over the longest period allowed by law. There are no special
      assessments levied or pending with respect to the Property as of the date
      hereof. The Property constitutes a separate tax parcel and is not taxed
      together with other land of the Lessor.

      Any tax year commencing during any Lease Year shall be deemed to
      correspond to such Lease Year. In the event the taxing authorities include
      in such real estate taxes and assessments the value of any improvements
      (excluding Tenant Improvements) made by Tenant, or of machinery,
      equipment, fixtures, inventory or other personal property or assets of
      Tenant, and indicate the same in writing, then Tenant shall pay all the
      taxes attributable to such items in addition to its proportionate share of
      said aforementioned real estate taxes and assessments. A photostatic copy
      of the tax statement submitted by Lessor to Tenant shall be sufficient
      evidence of the amount of taxes and assessments assessed or levied against
      the Property of which the Premises are a part. Lessor shall have the
      right, but not the obligation, to contest the amount or validity, or
      otherwise seek a reduction or abatement, of any Real Estate Taxes or a
      reduction in the assessed valuation of the Property. Any savings or
      rebates received by or awarded to Lessor in any such proceedings, net of
      appraiser fees, attorneys' fees and other costs and expenses incurred by
      Lessor in connection therewith (all of which shall be reimbursed to Lessor
      out of such savings or award, or, if such award relates to future Real
      Estate Taxes, in conjunction with and at the time of payment of the next
      due installment thereof) shall inure to the benefit of Tenant.

      Tenant shall have the right, at Tenant's sole expense, to contest the
      amount or validity, or otherwise seek a reduction or abatement, of any
      real estate taxes or a reduction in

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      the assessed valuation of the Property, by appropriate proceedings
      diligently conducted in good faith, provided that Tenant shall first have
      notified Lessor of its intention to do so and Lessor shall have failed to
      notify Tenant, within fifteen (15) days of receipt of such notice that
      Lessor intends to contest the same in its own name. If Tenant proceeds
      with any such contest, Lessor shall cooperate in good faith therewith and
      execute any reasonable documents necessary to enable Tenant to pursue such
      contest. Any such contest, whether by Lessor or Tenant, shall not delay or
      defer Tenant's obligation to timely reimburse Lessor for payment of each
      installment of real estate taxes.

      (b) A sum equal to one hundred percent (100%) of the annual aggregate
      "Operating Expenses" reasonably and in good faith incurred by Lessor in
      the operation, maintenance and repair of the Property. The term "Operating
      Expenses" shall be limited to those items and categories of expenses
      listed on Exhibit G.

      (c) The payment of the sums set forth in this Section 6 shall be in
      addition to the Base Rent payable pursuant to Section 5 of this Lease. The
      sums due under this Section 6, along with all other amounts to be paid by
      Tenant to Lessor hereunder other than Base Rent shall hereinafter be
      referred to as "Additional Rent." All sums due pursuant to Exhibit G shall
      be due and payable within thirty (30) days of delivery of written
      certification by Lessor setting forth the computation of the amount due
      from Tenant and including all reasonable detail, invoices, paid receipts
      and other backup documentation. If Tenant disputes in good faith its
      obligation to pay any such Operating Expense billed by Lessor, Tenant
      shall notify the Lessor in writing, stating the basis for such dispute and
      such dispute shall be timely submitted to binding arbitration to be
      conducted by and in accordance with the Rules of The American Arbitration
      Association. Tenant shall not be deemed in default hereunder for failure
      to pay the disputed portion of any item of Operating Expense until the
      dispute is resolved. In the event the Lease Term shall begin or expire at
      any time during the calendar year, the Tenant shall be responsible for his
      pro-rata share of Additional Rent under subdivisions a. and b. during the
      Lease and/or occupancy time.

      Prior to commencement of this Lease and prior to the commencement of each
      calendar year thereafter commencing during the term of this Lease or any
      renewal or extension thereof, Lessor may estimate for each calendar year
      (i) the total amount of Real Estate Taxes; and (ii) the total amount of
      Operating Expenses. Said estimates will be in writing and will be
      delivered or mailed to Tenant.

      The amount of Real Estate Taxes and Operating Expenses payable during each
      calendar year, so estimated, shall be payable as Additional Rent, in equal
      monthly installments, in advance, on the first day of each month during
      such calendar year at the option of Lessor. In the event that such
      estimate is delivered to Tenant before the first day of January of such
      calendar year, said amount, so estimated, shall be payable as Additional
      Rent in equal monthly installments, in advance on the first day of each
      month during such calendar year. In the event that such estimate is
      delivered to Tenant after the first day of January of such calendar year,
      said amount, so estimated, shall be payable as Additional Rent in equal
      monthly installments, in advance, on the first day

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      of each month over the balance of such calendar year, with the number of
      installments being equal to the number of full calendar months remaining
      in such calendar year.

      Upon completion of each calendar year during the term of this Lease or any
      renewal or extension thereof, Lessor shall cause its property manager to
      determine the actual amount of the Real Estate Taxes, and Operating
      Expenses payable in such calendar year and deliver a written certification
      of the amounts thereof to Tenant. If Tenant has underpaid Real Estate
      Taxes or Operating Expenses for such calendar year, Tenant shall pay the
      balance due within twenty (20) days after the receipt of such statement.
      If Tenant has overpaid Real Estate Taxes or Operating Expenses for such
      calendar year, Lessor shall credit such excess against the most current
      monthly installment or installments due Lessor for its estimate of Real
      Estate Taxes and Operating Expenses for the next following calendar year.
      A pro rata adjustment shall be made for a fractional calendar year
      occurring during the term of this Lease or any renewal or extension
      thereof based upon the number of days of the term of the Lease during said
      calendar year as compared to three hundred sixty-five (365) days and all
      additional sums payable by Tenant or credits due Tenant as a result of the
      provisions of this Section 6 shall be adjusted accordingly.

      Tenant shall have the right, during reasonable business hours and upon
      five (5) days prior notice to Lessor, to inspect all of Lessor's books and
      records with respect to Operating Expenses for the Property, which
      inspection shall be held at the office of Lessor's property manager. If
      any such inspection discloses that the amount paid by Tenant in any
      calendar year was overstated, Lessor shall refund such excess amounts to
      Tenant within ten (10) days after receipt of Tenant's demand therefor,
      unless Lessor shall, within said ten (10) day period, notify that Lessor
      disputes the correctness of such inspection. In the event that Lessor
      questions or disputes the correctness of such inspection, the accountant
      employed by Tenant and Lessor's property manager shall endeavor to
      reconcile the question or dispute within thirty (30) days thereafter. If
      such parties are unable to resolve such dispute or question within said
      thirty (30) day period, then either party shall be free to submit the
      matter to a court of competent jurisdiction.

                              COVENANT TO PAY RENT:

7. Except as otherwise expressly set forth in Section 35 hereof, the covenants
of Tenant to pay the Base Rent and the Additional Rent are each independent of
any other covenant, condition, provision or agreement contained in this Lease.
All rents are payable to Lessor at:

             AmberJack, Ltd.
             c/o Welsh Companies, Inc.
             8200 Normandale Boulevard, Suite 200
             Minneapolis, Minnesota 55437

or at such other address of which Lessor shall notify Tenant in writing.

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                                  UTILITIES:

8. Tenant shall pay, when due, all charges for sewer usage or rental, garbage
disposal, refuse removal, water, electricity, gas, fuel oil, L.P. gas, telephone
and/or other utility services or energy source furnished to the Premises during
the term of this Lease, or any renewal or extension thereof. If Lessor elects to
furnish any of the foregoing utility services or other services furnished or
caused to be furnished to Tenant, then the rate charged by Lessor shall not
exceed the rate Tenant would be required to pay to a utility company or service
company furnishing any of the foregoing utilities or services. The charges
thereof shall be deemed Additional Rent in accordance with Section 6.

                          CARE AND REPAIR OF PROPERTY:

9.    (a) Tenant shall, at all times throughout the term of this Lease,
      including renewals and extensions, and at its sole expense, keep and
      maintain the Premises in a clean, safe, sanitary and good condition,
      reasonable wear and tear (as defined in Section 30 hereof) and damage by
      fire or other casualty against which Lessor is required to insure
      hereunder or taking by eminent domain excepted, and in compliance with all
      applicable laws, codes, ordinances, rules and regulations. Tenant's
      obligations hereunder shall include but not be limited to the maintenance,
      repair and replacement (subject to the provisions of subsection 9(b) of
      this Lease relating to Lessor's obligation with respect to certain
      replacements), if necessary, of heating, air conditioning fixtures,
      equipment, and systems, all lighting and plumbing fixtures and equipment,
      fixtures, motors and machinery, all interior walls, partitions, doors and
      windows, including the regular painting thereof, all exterior entrances,
      windows, doors and docks and the replacement of all broken glass (except
      in the case of gross negligence or willful misconduct by Lessor, its
      agents, servants and contractors). Tenant shall obtain and maintain during
      the term of the Lease a maintenance contract with a reputable HVAC
      contractor acceptable to the Lessor in its reasonable discretion for the
      servicing, maintenance and repair of the heating, ventilation and air
      conditioning system serving the Premises (the "HVAC System") and shall
      provide a copy of such contract to Lessor for its approval. Tenant shall
      cause all regularly scheduled servicing and maintenance of the HVAC System
      thereunder to be performed in a timely manner and shall, upon request,
      provide evidence thereof to the Lessor. Tenant shall keep and maintain the
      HVAC System in good condition and repair throughout the term of the Lease,
      including without limitation all repairs to and replacements thereof as
      necessary. When used in this provision, the term "repairs" shall include
      replacements or renewals when necessary, and all such repairs made by the
      Tenant shall be equal in quality and class to the original work. Tenant
      shall also repair, at its expense, any damage to the Property or the
      Premises caused by the negligence or willful act of Tenant, its agents,
      employees, contractors or licensees. Notwithstanding anything in the
      foregoing to the contrary, Tenant's obligations under this Section 9(a)
      shall exclude any repairs or replacements which are Lessor's express
      responsibility under this Lease.

      If Tenant fails, refuses or neglects to maintain or repair the Premises as
      required in this Lease after notice shall have been given Tenant, in
      accordance with Section 33 of this

                                       10
<PAGE>

      Lease, not less than fifteen (15) days in advance (except in the care of a
      bona fide emergency, in which case no such notice is necessary) Lessor may
      make such repairs without liability to Tenant for any loss or damage that
      may accrue to Tenant's merchandise, fixtures or other property or to
      Tenant's business by reason thereof (except in the case of negligence or
      willful misconduct by Lessor, it agents, servants and contractors) and
      upon completion thereof, Tenant shall pay to Lessor all costs plus 15 %
      for overhead incurred by Lessor in making such repairs upon presentation
      to Tenant of a bill therefor. Notwithstanding the foregoing, the Lessor
      shall endeavor in good faith to minimize any interference with the conduct
      of Tenant's business at and from the Premises when making any such
      repairs.

      (b) Lessor shall repair, at its sole expense (and without reimbursement
      from Tenant as Operating Expenses), the structural portions of the
      Premises and all utility lines serving the Premises up to the exterior
      walls thereof, provided however where structural repairs or repairs to
      utility lines are required to be made by reason of the negligence or
      wrongful acts of Tenant, its agents, employees, contractors, invitees or
      visitors, the costs thereof shall be borne by Tenant and payable by Tenant
      to Lessor upon demand. Lessor shall also, at its expense, when necessary
      replace theroof on the Premises; provided, however, that the cost of
      repairs (as opposed to replacement) to the roof, to the extent not covered
      by any roof warranty or guaranty, shall constitute Operating Expenses. The
      Lessor shall also maintain and repair as necessary, subject to
      reimbursement thereof from Tenant as Operating Expenses, the parking and
      driveway areas of the Property and all landscaped areas on the Property.
      Lessor shall also, at its expense (and without reimbursement from Tenant),
      repair in a good and workmanlike manner all damage to the Property caused
      by the negligence or wrongful act of Lessor, its agents, employees,
      contractors or licensees.

      All maintenance which is the responsibility of the Lessor shall be
      provided promptly and diligently, upon the condition that the Lessor shall
      not be liable for damages for failure to do so due to causes beyond its
      control.

      Notwithstanding the foregoing to the contrary, the Tenant shall not be
      responsible for any maintenance or repairs which are (i) covered by any
      warranties or guarantees running in favor of Lessor which are not assigned
      to Tenant hereunder, or (ii) required as a result of any negligence or
      wrongful acts or omissions of Lessor, it being agreed that Lessor shall be
      responsible at its sole cost for the items set forth in subsections
      (i)-(ii) above.

      (c) All capital improvements which are required to be made after the date
      of this Lease to the Premises in order to comply with any governmental law
      or regulation in force as of the Commencement Date shall be borne by
      Lessor.

      (d) Any and all capital improvements to be made to the Premises from and
      after the date hereof by virtue of the specific use and activity being
      conducted thereon by Tenant (as opposed to general use of similar
      commercial real estate) shall be borne exclusively by Tenant.

                                       11
<PAGE>

      (e) Any and all other capital improvements required to be made to the
      Premises from and after the date hereof that are required under any
      governmental statute, ordinance, rule, regulation and other law which was
      not applicable to the Premises at the time it was constructed, shall be in
      the first instance performed by Lessor, subject to the terms set forth
      below. Upon completion of such capital improvements, Tenant shall
      reimburse Lessor for a portion of the cost of any such capital improvement
      based upon a fraction, the numerator of which is the number of full
      calendar months remaining in the then current term of the Lease and the
      denominator of which is the number of months in the reasonably useful life
      of such capital improvement. Upon exercise of any Renewal Option, Tenant
      shall pay to Lessor an additional portion of the cost of any such capital
      improvement based upon the number of calendar months in said renewal term.

                                     SIGNS:

10. Any sign, lettering, picture, notice or advertisement installed on or in any
part of the Property and visible from the exterior of the Premises, shall be
approved (which approval shall not be unreasonably withheld, delayed or
conditioned) and installed by Lessor at Tenant's reasonable expense. In the
event of a violation of the foregoing by Tenant, Lessor may, if Tenant does not
remedy such violation within fifteen (15) days after written notice from Lessor,
remove the same without any liability and may charge the reasonable expense
incurred by such removal to Tenant. Attached hereto and incorporated herein as
Exhibit F is a copy of Tenant's initial sign proposal and criteria, which Lessor
hereby approves.

                      ALTERATIONS, INSTALLATION, FIXTURES:

11. Except for those repair and maintenance obligations set forth elsewhere in
this Lease, Tenant shall not make any exterior or structural alterations in any
portion of the Premises, without, in each instance, first obtaining the written
consent of Lessor. Lessor shall not unreasonably withhold, delay or condition
such consent so long as Tenant provides to Lessor in advance a surety bond or
other adequate security for the payment of all costs to be incurred in
connection with such alterations and so long as the proposed alterations in
Lessor's reasonable judgment (i) will not in any way impair or otherwise alter
the structural integrity of the Premises; (ii) will not adversely affect any
utility lines, pipes or equipment lying outside of the exterior walls of the
Premises; (iii) will not in any way decrease the fair market value of the
Property and (iv) will not involve any change in use of the Property. Tenant
shall be permitted to (i) repaint the interior of the Premises, replace any
carpeting or wall covering in the Premises, all without regard to cost, or (ii)
make other interior non-structural alterations and improvements without Lessor's
prior consent, provided, however, that in any event, Tenant shall give to Lessor
prior written notice of, and plans relating to, any such alteration or
improvements. Within fifteen (15) days after receipt of any such plans and
specifications, Lessor shall notify Tenant in writing as to whether Lessor
expects Tenant to remove the proposed alterations or improvements at the
expiration of the Lease Term and restore the Premises to their prior condition.
In connection with any alterations, Tenant shall provide lien waivers, evidence
of appropriate insurance and sworn construction statements if such items are

                                       12
<PAGE>

reasonably requested by Lessor or its lender. Without cost or expense to Lessor,
Lessor shall cooperate with Tenant in the obtaining of any and all licenses,
building permits, certificates of occupancy or other governmental approvals
which may be required in connection with any such alterations, and Lessor shall
execute, acknowledge and deliver any documents reasonably required in
furtherance of such purposes. In the event alterations are required by any
governmental agency by reason of the specific use and occupancy of the Premises
by Tenant (i.e., as opposed to being applicable generally to similar commercial
facilities within the subject jurisdiction), Tenant shall make such alterations
at its own cost and expense after first obtaining Lessor's approval of plans and
specifications therefor. Lessor shall see to it that at the time of the delivery
of the Premises and the Property, the same will be in full compliance with the
Americans With Disabilities Act of 1990 ("ADA") or similar statutes or law and
regulations as of the Commencement Date, including, without implied limitations,
in compliance with all accessibility guidelines, to the extent that the
provisions thereof relate to similar commercial facilities generally. Subject to
the preceding sentence, thereafter, the Tenant shall be responsible for
improvements or modifications to the Premises required or necessary to comply,
as it expressly applies to Tenant, with the ADA or similar statutes or law.

                                   POSSESSION:

12. Except as hereinafter provided, Lessor shall deliver possession of the
Premises to Tenant in the condition required by this Lease on or before the
Commencement Date. The rentals herein reserved shall commence on the
Commencement Date; provided, however, that if Tenant assumes occupancy of the
Premises prior to the Commencement Date and commences manufacturing operations
therein, the terms of such occupancy shall in all respects be the same as that
of a Tenant under this Lease, including without limitation the obligation to pay
Base Rent and Additional Rent based upon that portion of the Premises in which
Tenant has assumed occupancy and commenced manufacturing operations. Lessor
shall have no responsibility or liability for loss or damage to fixtures,
facilities or equipment installed or left on the Premises.

                          SECURITY AND DAMAGE DEPOSIT:

13.   Tenant contemporaneously with the execution of this Lease, has deposited
      with Lessor the sum of Seventy-Four Thousand Eight Hundred Eighteen and
      04/100 Dollars ($74,818.04), receipt of which is acknowledged hereby by
      Lessor, which deposit is to be held by Lessor, without liability for
      interest, as a security and damage deposit for the faithful performance by
      Tenant during the term hereof or any extension hereof. Prior to the time
      when Tenant shall be entitled to the return of this security deposit,
      Lessor may co-mingle such deposit with Lessor's own funds and to use such
      security deposit for such purpose as Lessor may determine. Notwithstanding
      the foregoing to the contrary, in the event Lessor transfers title to the
      Property to a party with a tangible net worth of less than Five Million
      and 00/100 Dollars ($5,000,000.00), Lessor shall require such transferee
      to segregate the security deposit in a separate account and agree in
      writing not to co-mingle said security deposit with such transferee's own
      funds. In the event Lessor transfers title to the Property to a party with
      a tangible net worth of Five Million and 00/100 Dollars ($5,000,000.00)

                                       13
<PAGE>

      and such transferee wishes to co-mingle such deposit with its own funds,
      such transferee shall, as a condition thereto, provide to Tenant such
      transferee's most recent financial statement, which shall have at least
      been reviewed by independent certified public accountants, in order to
      substantiate such transferee's then current tangible net worth. Any such
      writing shall name Tenant and its assigns as third party beneficiaries.
      Lessor shall provide to Tenant an executed original of any such writing.
      In the event of the failure of Tenant to keep and perform any of the
      terms, covenants and conditions of this Lease to be kept and performed by
      Tenant during the term hereof or any extension hereof, then Lessor either
      with or without terminating this Lease, may (but shall not be required to)
      apply such portion of said deposit as may be necessary to compensate or
      repay Lessor for all losses or damages sustained or to be sustained by
      Lessor due to such breach on the part of Tenant, including, but not
      limited to overdue and unpaid rent, any other sum payable by Tenant to
      Lessor pursuant to the provisions of this Lease, damages or deficiencies
      in the reletting of Premises, and reasonable attorney's fees incurred by
      Lessor. Should the entire deposit or any portion thereof, be appropriated
      and applied by Lessor, in accordance with the provisions of this
      paragraph, Tenant upon written demand by Lessor, shall remit forthwith to
      Lessor a sufficient amount of cash to restore said security deposit to the
      original sum deposited, and Tenant's failure to do so within five (5) days
      after receipt of such demand shall constitute a breach of this Lease. Said
      security deposit shall be returned to Tenant, less any depletion thereof
      as the result of the provisions of this paragraph, at the end of the term
      of this Lease or any renewal thereof, or upon the earlier termination of
      this Lease. Tenant shall have no right to anticipate return of said
      deposit by withholding any amount required to be paid pursuant to the
      provision of this Lease or otherwise.

In the event Lessor shall sell the Property, or shall otherwise convey or
dispose of its interest in this Lease, Lessor may assign said security deposit
or any balance thereof to Lessor's assignee, whereupon Lessor shall be released
from all liability for the return or repayment of such security deposit and
Tenant shall look solely to the said assignee for the return and repayment of
said security deposit. Said security deposit shall not be collaterally assigned
or encumbered by Tenant without the written consent of Lessor, and any
assignment or encumbrance without such consent shall not bind Lessor. In the
event of any rightful and permitted assignment of this Lease by Tenant, said
security deposit shall be deemed to be held by Lessor as a deposit made by the
assignee, and Lessor shall have no further liability with respect to the return
of said security deposit to the Tenant.

                                      USE:

14. The Premises shall be used and occupied by Tenant for office and warehouse
purposes and for light manufacturing for assembly and storage of electronic
components and related uses, so long as such use is permissible under all
applicable laws, ordinances and governmental regulations affecting the Property.
The Premises shall not be used in such manner that, in accordance with any
requirement of law or of any public authority, Lessor shall be obliged on
account of the purpose or manner of said use to make any addition or alteration
to or in the Premises. Tenant shall occupy the Premises, conduct its business
and control its agents, employees, contractors, invitees and visitors in such a
way as is lawful and will not permit or create any nuisance, unreasonable noise
or odor, or otherwise interfere with or disturb any

                                       14
<PAGE>

other tenant or occupant of any adjacent property in its normal business
operations. Tenant's use of the Premises shall conform to all reasonable rules
and regulations relating to the use of the Property, as may be adopted from time
to time, which, in any event, shall be uniformly applicable to and enforced
against the tenants of any other adjacent or contiguous property owned by
Lessor. To the extent the same is done in a manner consistent with all
applicable laws, ordinances and governmental regulations, Lessor consents to
Tenant's storage on the Property outside of the Premises of loaded and unloaded
trailers and nitrogen and other gas tanks; provided, however, that by so
consenting Lessor assumes no liability with respect to such stored property.
Tenant acknowledges that the site plan attached hereto as Exhibit B, which site
plan has been approved by Tenant, includes not more than 411 parking spaces on
the Property.

                               ACCESS TO PREMISES:

15. The Tenant agrees to permit the Lessor and the authorized representatives of
the Lessor to enter the Premises, upon reasonable advance notice (other than in
the case of a bona fide emergency in which case Lessor shall be required to give
only such notice, telephonic or otherwise, as is practicable and reasonable
under the circumstances) at all times during usual business hours for the
purpose of inspecting the same and making any necessary repairs to the Premises
and performing any work therein that may be necessary to comply with any laws,
ordinances, rules, regulations or requirements of any public authority or of the
Board of Fire Underwriters or any similar body or that the Lessor may reasonably
deem necessary to prevent material waste or deterioration in connection with the
Premises. Nothing herein shall imply any duty upon the part of the Lessor to do
any such work which, under any provision of this Lease, the Tenant may be
required to perform and the performance thereof by the Lessor shall not
constitute a waiver of the Tenant's default in failing to perform the same. The
Lessor may, during the progress of any work in the Premises, keep and store upon
the Premises all necessary materials, tools and equipment; provided, however,
that Lessor shall do so, if at all, in a manner intended to minimize, to the
extent possible, any interference with, inconvenience to or disturbance of
Tenant's business. The Lessor shall not in any event be liable for
inconvenience, annoyance, disturbance, loss of business, or other damage of the
Tenant by reason of making repairs or the performance of any work in the
Premises, or on account of bringing materials, supplies and equipment into or
through the Premises during the course thereof and the obligations of the Tenant
under this Lease shall not thereby be affected in any manner whatsoever.

Lessor reserves the right to enter upon the Premises at any time in the event of
an emergency and at reasonable hours to exhibit the Premises to prospective
purchasers or others; and to exhibit the Premises to prospective Tenants and to
the display "For Lease" or similar signs on the Property adjacent to abutting
public roadways during the last nine (9) months of the term of this Lease, all
without hindrance or molestation by Tenant.

                                       15
<PAGE>

                                 EMINENT DOMAIN:

16. In the event of any eminent domain or condemnation proceeding or sale to the
condemning authority in lieu thereof in respect to the Property during the term
thereof, the following provisions shall apply:

      (a) If the whole of the Property shall be acquired or condemned by eminent
      domain for any public or quasi-public use or purpose, then the term of
      this Lease shall cease and terminate as of the date possession shall be
      taken in such proceeding and all rentals shall be paid up to that date.

      (b) If any part constituting less than the whole of the Property shall be
      acquired or condemned as aforesaid, and in the event that such partial
      taking or condemnation shall materially affect the Premises so as to
      render the Premises unsuitable for the business of the Tenant, in the
      commercially reasonable opinion of either Lessor or Tenant, then the term
      of this Lease shall cease and terminate as of the date possession shall be
      taken by the condemning authority and rent shall be paid to the date of
      such termination. In the event that either Lessor or Tenant desire to
      terminate this lease as aforesaid, such party shall give written notice of
      termination within thirty (30) days after, as to Lessor, the effective
      date of such taking or, as to Tenant, receipt of written notice of the
      effective date of such taking.

      In the event of a partial taking or condemnation of the Property, as a
      result of which this Lease is not terminated as set forth in the preceding
      paragraph, this Lease shall continue in full force and effect but with a
      proportionate abatement of the Base Rent and Additional Rent based on the
      portion, if any, of the Premises taken. Lessor reserves the right, at its
      option, to restore the Premises to substantially the same condition as
      they were prior to such condemnation. In such event, Lessor shall give
      written notice to Tenant, within thirty (30) days following the date
      possession shall be taken by the condemning authority, of Lessor's
      intention to restore. Upon Lessor's notice of election to restore, Lessor
      shall commence restoration and shall restore the Premises with reasonable
      promptness, subject to delays beyond Lessor's control and delays in the
      making of condemnation or sale proceeds adjustments by Lessor; and Tenant
      shall have no right to terminate this Lease except as herein provided.
      Upon completion of such restoration, the rent shall be adjusted based upon
      the portion, if any, of the Premises restored.

      (c) In the event of any condemnation or taking as aforesaid, whether whole
      or partial, the Tenant shall not be entitled to any part of the award paid
      for such condemnation and Lessor is to receive the full amount of such
      award, the Tenant hereby expressly waiving any right to claim to any part
      thereof.

      (d) Although all damages in the event of any condemnation shall belong to
      the Lessor whether such damages are awarded as compensation for diminution
      in value of the leasehold or to the fee of the Premises, Tenant shall have
      the right to claim and recover from the condemning authority, but not from
      Lessor, such compensation as

                                       16
<PAGE>

      may be separately awarded or recoverable by Tenant in Tenant's own right
      on account of any and all damage to Tenant's business by reason of the
      condemnation and for or on account of any cost or loss to which Tenant
      might be put in removing Tenant's merchandise, furniture, fixtures,
      leasehold improvements and equipment, and for the unamortized portion of
      Tenant's TI Contribution (based on full amortization thereof over a
      presumed ten year lease term) and subsequent alterations or improvements
      paid for by Tenant, amortized over the unexpired balance of a presumed ten
      (10) year lease term. However, Tenant shall have no claim against Lessor
      or make any claim with the condemning authority for the loss of its
      leasehold estate, any unexpired term or loss of any possible renewal or
      extension of said lease or loss of any possible value of said lease, any
      unexpired term renewal or extension of said Lease.

                             DAMAGE OR DESTRUCTION:

17. In the event of any damage or destruction to the Premises by fire or other
cause during the term hereof, Tenant shall in any event promptly notify Lessor
thereof, and the following provisions shall apply:

      (a) If the cost of restoration as reasonably estimated by Lessor will
      equal or exceed seventy-five percent (75%) of said replacement cost of the
      Premises, then either Lessor or Tenant may, no later than the forty-fifth
      (45th) day following the damage, give the other party written notice of
      election to terminate this Lease.

      (b) If the cost of restoration as estimated by Lessor shall amount to less
      than seventy-five percent (75%) of said replacement cost of the Premises,
      or if, despite the cost, neither party elects to terminate this Lease,
      Lessor shall restore the Premises, including the Tenant Improvements, but
      excluding, unless Lessor otherwise consents in writing in advance, any
      leasehold improvements constructed by or on behalf of Tenant after
      completion of the initial construction of the Premises, and all trade
      fixtures, contents and personal property of Tenant, all of which Tenant
      shall separately insure, with reasonable promptness, subject to delays
      beyond Lessor's control and delays in the making of insurance adjustments
      by Lessor. Lessor agrees to make and pursue resolution, on commercially
      reasonable terms, of any insurance claim diligently and in good faith.

      (c) In the event of either of the elections to terminate, this Lease shall
      be deemed to terminate on the date of the receipt of the notice of
      election and all rents shall be paid up to that date. Notwithstanding
      termination of the Lease, Lessor shall allow Tenant a reasonable
      opportunity, not exceeding thirty (30) days from the effective date of
      termination, to remove its trade fixtures and other Tenant property from
      the Premises. Tenant shall have no claim against Lessor for the value of
      any unexpired term of this Lease.

      (d) In any case where damage to the Premises shall materially affect the
      Premises so as to render them unsuitable in whole or in part for the
      purposes for which they are demised hereunder, then, unless such
      destruction was caused by the negligence or

                                       17
<PAGE>

      breach of the terms of this Lease by Tenant, its agents, employees,
      contractors, invitees or visitors, a portion of the Base Rent and
      Additional Rent based upon the extent to which the Premises or the parking
      areas on the Property are rendered unsuitable shall be abated until
      repaired or restored. If the destruction or damage was caused by
      negligence or breach of the terms of this Lease by Tenant as aforesaid and
      if Lessor shall elect to rebuild, the rent shall not abate and the Tenant
      shall remain liable for the same. For purposes of this Section 17(d),
      Lessor acknowledges that Lessor's property manager shall not be deemed to
      be an agent, employee, contractor, invitee or visitor of Tenant.

      (e) Notwithstanding the foregoing to the contrary, in the event that
      Lessor has, for reasons within its reasonable control, not completed
      restoration of the Premises within one hundred eighty (180) days after the
      date of such damage or destruction, or, for reasons not within of Lessor's
      reasonable control, including without limitation delays in the making of
      insurance adjustments by Lessor, within sixteen (16) months after the date
      of such damage or destruction, Tenant may terminate this Lease on sixty
      (60) days advance written notice unless, within such 60 day period, Lessor
      shall complete restoration or repair of the Premises, in which case this
      Lease shall not be terminated.

                               CASUALTY INSURANCE:

18.   (a) Lessor shall at all times during the term of this Lease, at its
      expense, maintain at commercially reasonable cost a so-called "all risk"
      policy or policies of insurance with premiums paid in advance issued by an
      insurance company licensed to do business in the State of Minnesota
      insuring the Premises, including without limitation all Tenant
      Improvements but excluding, unless Lessor otherwise consents in writing,
      any leasehold improvements constructed by or on behalf of Tenant after the
      completion of initial construction of the Premises, in an amount equal to
      its full insurable value on a full replacement cost basis against loss or
      damage by fire, explosion or other insurance hazards and contingencies,
      provided that Lessor shall not be obligated to insure any furniture, trade
      fixtures, equipment, machinery, goods or supplies not covered by this
      Lease which Tenant may bring upon the Premises.

      (b) Tenant shall not carry any stock of goods or do anything in or about
      the Premises which will in any way impair or invalidate the obligation of
      the insurer under any policy of insurance required by this Lease;
      provided, however, that Tenant in lieu of removing such goods or ceasing
      such activities provide to Lessor a substitute insurance policy acceptable
      to Lessor in its reasonable discretion.

      (c) Lessor hereby waives and releases all claims, liability and causes of
      action against Tenant and its agents, servants and employees for loss or
      damage to, or destruction of, the Property or any portion thereof,
      including the buildings and other improvements situated thereon, resulting
      from fire, explosion and other perils included in standard "all risk"
      insurance, whether caused by the negligence of any of said persons or
      otherwise. Likewise, Tenant hereby waives and releases all claims,
      liabilities and causes of action against Lessor and its agents, servants
      and employees for

                                       18
<PAGE>

      loss or damage to, or destruction of, any of the improvements, fixtures,
      equipment, supplies, merchandise and other property, whether that of
      Tenant or of others in, upon or about the Property resulting from fire,
      explosion or the other perils included in standard extended coverage
      insurance, whether caused by the negligence of any of said persons or
      otherwise. The waiver shall remain in force whether or not the Tenant's
      insurer shall consent thereto.

      (d) If Tenant installs any electrical equipment that overloads the power
      lines to the building or its wiring, Tenant shall, at its own expense,
      make whatever changes are necessary to comply with the requirements of the
      insurance underwriter, insurance rating bureau and governmental
      authorities having jurisdiction.

                           PUBLIC LIABILITY INSURANCE:

19. Tenant shall during the term hereof, keep in full force and effect at its
expense a policy or policies of public liability insurance with respect to the
Property, including the Premises and the business of Tenant, on terms with
companies approved in writing by Lessor, which approval shall not be
unreasonably withheld, delayed or conditioned, in which both Tenant and Lessor
shall be covered by being named as insured parties under reasonable limits of
liability not less than $2,000,000 in the aggregate. Such policy or policies
shall provide that thirty (30) days written notice must be given to Lessor prior
to cancellation thereof. Tenant shall furnish evidence satisfactory to Lessor at
the time this Lease is executed that such coverage is in full force and effect.
Lessor may, at its option, maintain additional or supplemental public liability
insurance in its own name with respect to the Property, and the reasonable cost
thereof shall be reimbursed to Lessor by Tenant as Operating Expenses.

                               DEFAULT OF TENANT:

20.   (a) For purposes of this Lease, any of the following shall constitute a
      "Tenant Default": (i) any failure of Tenant to pay any Base Rent or any
      installment of Tenant's TI Contribution due hereunder within ten (10) days
      after written notice of default (provided, however, that if Lessor shall
      give three such notices in any twelve month period, no notice of any
      further default shall be required during the balance of the twelve month
      period commencing the first date of such notice); or (ii) any failure of
      Tenant to pay any Additional Rent which is not being contested in good
      faith pursuant to the provisions of Section 6(c) hereof within ten (10)
      days after written notice of default; or (iii) any failure of Tenant to
      perform any other of the terms, conditions or covenants of this Lease to
      be observed or performed by Tenant for more than thirty (30) days after
      written notice of such failure shall have been given to Tenant; provided,
      however, that if such default cannot with due diligence be wholly cured
      within such thirty (30) days, Tenant shall have such longer period as may
      be reasonably necessary to cure the default, so long as Lessor proceeds
      promptly to commence the cure of same within such thirty (30) day period
      and diligently prosecutes the cure to completion, or (iv) if Tenant or any
      guarantor of this Lease shall file or have filed against it any petition
      or claim for relief under any federal or state law relating to bankruptcy
      or insolvency or for reorganization or for the appointment of a receiver
      or trustee of all or

                                       19
<PAGE>

      a portion of Tenant's or any such guarantor's property (and, as to
      involuntary proceedings only, such petition or claim is not dismissed in
      one hundred twenty (120) days), or (v) if Tenant or any such guarantor
      makes an assignment for the benefit of creditors, or petitions for or
      enters into an arrangement, or if Tenant shall abandon the Premises or
      suffer this Lease to be taken under any writ of execution or (vi)
      Manufacturer's Services Ltd., a Delaware corporation ("Guarantor") shall
      otherwise be in default in the performance of any covenant or agreement
      under the Lease Guaranty of even date herewith signed by Guarantor in
      favor of Lessor (the "Lease Guaranty") and such default shall continue for
      a period of thirty (30) days after written notice thereof shall have been
      given to Tenant. Upon the occurrence of a Tenant Default, then Lessor, in
      addition to its rights of remedies it may have, shall have, with judicial
      process, the immediate right of re-entry and may remove all persons and
      property from the Premises and such property may be removed and stored in
      a public warehouse or elsewhere at the cost of, and for the account of
      Tenant, all without being guilty of trespass or becoming liable for any
      loss or damage which may be occasioned thereby. Notwithstanding the
      foregoing to the contrary, no further notices of default under subsections
      (i) and (ii) above shall be required hereunder this Section 20(a) if
      Tenant willfully and persistently fails to pay Base Rent hereunder in such
      a manner that a reasonable person would conclude that Tenant is not
      performing its payment obligations hereunder in good faith and in a timely
      manner.

      (b) Should Lessor elect to re-enter the Premises as herein provided, or
      should it take possession of the Premises pursuant to legal proceedings,
      it may either terminate this Lease or it may from time to time, without
      terminating this Lease, make such alterations and repairs as may be
      necessary in order to relet the Premises, and relet the Premises or any
      part thereof upon such term or terms (which may be for a term extending
      beyond the term of this lease) and at such rental or rentals and upon such
      other terms and conditions as Lessor in its sole discretion may deem
      advisable. Lessor shall make reasonable efforts to mitigate damages but
      shall under no circumstances be obligated to prefer the Property in its
      marketing and leasing efforts over other available property owned,
      operated or managed, in whole or in part, by Lessor. Upon each such
      reletting all rentals received by the Lessor from such reletting shall be
      applied first to the payment of any indebtedness other than rent due
      hereunder from Tenant to Lessor; second, to the payment of any costs and
      expenses of such reletting, including brokerage fees (prorated based on a
      fraction, the numerator of which is the number of days remaining in the
      then current Lease term hereunder and the denominator of which is the
      number of days in the initial lease term for the substitute tenant) and
      attorney's fees and a portion of the cost of such alterations and repairs,
      prorated based on a fraction calculated as set forth immediately above;
      third, to the payment of the rent due and unpaid payment of future rent as
      the same may become due and payable hereunder. If such rentals received
      from such reletting during any month be less than that to be paid during
      that month by Tenant hereunder, Tenant, upon demand, shall pay any such
      deficiency to Lessor. No such re-entry or taking possession of the
      Premises by Lessor shall be construed as an election on its part to
      terminate this Lease unless a written notice of such intention be given to
      Tenant or unless the termination thereof be decreed by a court of
      competent jurisdiction. Notwithstanding any such reletting without

                                       20
<PAGE>

      termination, Lessor may at any time after such re-entry and reletting
      elect to terminate this Lease for any such breach, in addition to any
      other remedies it may have, it may recover from Tenant all damages it may
      incur by reason of such breach, including the cost of recovering the
      Premises, reasonable attorney's fees, and including the worth at the time
      of such termination of the excess, if any, of the amount of rent and
      charges equivalent to rent reserved in this Lease for the remainder of the
      stated term over the then reasonable rental value of the Premises for the
      remainder of the stated term, all of which amounts shall be immediately
      due and payable from Tenant to Lessor. In the event of termination of this
      Lease after a Tenant Default, Lessor shall under no circumstances be
      obligated to return or repay to Tenant any previously paid installments of
      Tenant's TI Contribution.

      (c) In the event suit shall be brought for recovery of possession of the
      Premises, for the recovery of rent or any other amount due under the
      provisions of this Lease, or because of the breach of any other covenant
      herein contained on the part of Tenant to be kept or performed, and a
      breach shall be established, Tenant shall pay to Lessor all reasonable
      expenses incurred therefor, including a reasonable attorney's fee,
      together with interest on all such expenses at the rate of four percent
      (4%) per annum in excess of the "base" or "prime" rate of interest (or
      equivalent successor rate) as may be set or announced by Norwest Bank
      Minnesota, National Association, Minneapolis, Minnesota, as the same
      changes from time to time (the "Default Rate"), from the date of such
      breach of the covenants of this Lease.

      (d) Tenant hereby expressly waives any and all rights of redemption
      granted by or under any present or future laws in the event of Tenant
      being evicted or dispossessed for any cause, or in the event of Lessor
      obtaining possession of the Premises, by reason of the violation by Tenant
      of any of the covenants or conditions of this Lease, or otherwise. Tenant
      also waives any demand for possession of the Premises, and any demand for
      payment of rent and any notice of intent to re-enter the Premises, or of
      intent to terminate this Lease, other than the notices above provided in
      this section, and waives any and every other notice or demand prescribed
      by any applicable statutes or laws.

      (e) No remedy herein or elsewhere in this Lease or otherwise by law,
      statute or equity, conferred upon or reserved to Lessor or Tenant shall be
      exclusive of any other remedy, but shall be cumulative, and may be
      exercised from time to time and as often as the occasion may arise.

                           COVENANTS TO HOLD HARMLESS:

21. Except in case of fire or other casualty against which Lessor is required to
insure hereunder, or damage or loss caused by the exercise of eminent domain,
unless the liability for damage or loss is caused by the negligence of Lessor,
its agents, contractors or employees or is due to Lessor's default in the
performance of any of its obligations, duties, covenants, representations or
warranties hereunder, Tenant shall hold harmless Lessor from any liability for
damages to any person or property in or upon the Premises and the Property,
including the

                                       21
<PAGE>

person and the property of Tenant and its employees and all persons in the
Premises at its or their invitation or sufferance, and from all damages
resulting from Tenant's failure to perform the covenants of this Lease. In the
event of any claim or assertion of liability against Lessor in any manner
covered by Tenant's indemnification obligation set forth in the foregoing
sentence, Tenant may contest such claim or assertion of liability so long as it
proceeds diligently and in good faith with respect thereto and, in connection
therewith, shall employ competent counsel acceptable to Lessor (the approval of
which shall not be unreasonably withheld, delayed or conditioned). Lessor agrees
to give prompt notice to Tenant of any such claim or assertion of liability. If
Tenant so engages counsel acceptable to Lessor as aforesaid, Tenant's indemnity
hereunder shall not include reimbursement to Lessor of any separate fees for
Lessor's independent legal counsel. All property kept, maintained or stored on
the Premises shall be so kept, maintained or stored at the sole risk of Tenant.
Tenant agrees to pay all sums of money in respect of any labor, service,
materials, supplies or equipment furnished or alleged to have been furnished to
Tenant in or about the Property, and not furnished on order of Lessor, which may
be secured by any Mechanic's, Materialmen's or other lien to be discharged at
the time performance of any obligation secured thereby matures, provided that
Tenant may contest such lien so long as (i) Tenant proceeds with such contest
diligently and in good faith, and (ii) Tenant provides to the Lessor a surety
bond or other security acceptable to Lessor in an amount equal to 125% of the
amount of such lien within ten (10) days after receipt by Tenant of notice of
such lien, but if such lien is reduced to final judgment and if such judgment or
process thereon is not stayed, or if stayed and said stay expires, then and in
each such event, Tenant shall forthwith pay and discharge said judgment and
lien. Lessor shall have the right to post and maintain on the Premises, notices
of non-responsibility under the laws of the State of Minnesota.

                                 NON-LIABILITY:

22. Except in the case of fire or other casualty against which Lessor is
required to insure hereunder or damage or loss caused by the exercise of eminent
domain, Lessor shall not be liable for damage to any property of Tenant or of
others located on the Property, nor for the loss of or damage to any property of
Tenant or of others by theft or otherwise. Lessor shall not be liable for any
injury or damage to persons or property resulting from fire, explosion, any
injury or damage to persons or property resulting from fire, explosion, falling
plaster, steam, gas, electricity, water, rain or snow or leaks from any part of
the Property or from the pipes, appliances, or plumbing works or from the roof,
street or subsurface or from any other place or by dampness or by any such
damage caused by other Tenants or persons in the Property, occupants of adjacent
property, of the buildings, or the public or caused by operations in
construction of any private, public or quasi-public work. All property of Tenant
kept or stored on the Premises shall be so kept or stored at the risk of Tenant
only and Tenant shall hold Lessor harmless from any claims arising out of damage
to the same, including subrogation claims by Tenant's insurance carrier.

                                 SUBORDINATION:

23. Lessor warrants that the Property is not encumbered by any Mortgage (as
defined below) as of the date hereof. In the event that the Property becomes
encumbered by a Mortgage prior

                                       22
<PAGE>

to the earlier of (i) Commencement Date, or (ii) the date on which a Memorandum
of Lease is recorded with the Ramsey County Recorder pursuant to Section 29
hereof, Lessor shall cause the mortgagee thereunder to execute and deliver to
Tenant a subordination, nondisturbance and attornment agreement as required
below in this Section 23. This Lease shall be subject and subordinate to the
lien of any and all Mortgages (as defined below) hereafter encumbering the
Premises and placed thereon by Lessor, its successor or assigns, and to
renewals, modifications, replacements and extensions of such Mortgages;
provided, however, that the subordination herein contained shall not be
effective with respect to any Mortgage unless the holder of such Mortgage (the
"Mortgagee") shall execute and deliver a subordination, nondisturbance and
attornment agreement providing that, in the event the Mortgage shall be
foreclosed, the Mortgagee shall accept a deed in lieu thereof, or the Mortgagee
shall be or become a mortgagee-in-possession of the Property (any of which
events shall be a "Foreclosure"), so long as no Tenant Default shall have
occurred and be construing, and so long as Tenant shall attorn to Mortgagee or
purchaser upon Foreclosure, (i) the Lease shall not terminate by any reason of
such Foreclosure, (ii) Tenant's possession of the Premises shall not be
disturbed, (iii) the Mortgagee or purchaser upon such Foreclosure, its or his
successors or assigns, shall recognize Tenant and all its rights hereunder and
shall be obligated to fully and completely perform Lessor's duties and
obligations under this Lease arising from and after the date of such
Foreclosure, and (iv) Tenant shall not, unless otherwise required by applicable
law, be named as a party in any action for Foreclosure. For purposes hereof, the
term "Mortgage" shall mean any mortgage, deed of trust or similar consensual
lien on the Property securing loans made to Lessor, its successors and assigns,
by any bank, savings bank, savings and loan association, trust company,
insurance company, pension fund, any lending affiliate of any of the foregoing,
or any other institutional lender.

                            ASSIGNMENT OR SUBLETTING:

24. So long as no Tenant Default shall have then occurred and be continuing, and
subject to the terms and limitations set forth below, Tenant shall have the
right to assign this Lease or sublet the Premises (to no more than three (3)
subtenants in the aggregate at any one time) or any portion thereof only with
the prior written consent of Lessor, which consent shall not be unreasonably
withheld if (i) as to an assignment or as to a sublease of more than 30,000
square feet, the proposed assignee or subtenant is reasonably creditworthy, (ii)
the proposed assignee or subtenant assumes, in a written assumption agreement in
form and substance acceptable to Lessor in its commercially reasonable
discretion, Tenant's obligations hereunder (as to subtenants, excluding the
obligation as to pay Base Rent or Additional Rent) and otherwise agrees to be
bound by the terms hereof, from and after the date of assignment of this Lease.
Notwithstanding the foregoing, under no circumstances will Tenant be released
from any obligations hereunder, nor will Guarantor be released from its
obligations under the Lease Guaranty, upon any such assignment or sublease,
including without limitation any "Intracorporate Transfer" or space sharing
arrangement as contemplated below in this Section 24. Should Tenant sublease in
accordance with the terms of this Lease, any increase in rental received by
Tenant over the per square foot rental rate which is being paid by Tenant (after
reimbursement to the Tenant of reasonable costs incurred in consummating such
sublease, including, without implied limitation, attorneys' fees, brokerage
commissions and the cost of making changes by reason thereof in the Premises
such commissions and costs of

                                       23
<PAGE>

changes in the Premises to be amortized of the term of occupancy of the Premises
by the assignee or sublessee) shall be forwarded to and retained by Lessor,
which increase shall be in addition to the Base Rent and Additional Rent due
Lessor under this Lease.

Notwithstanding the above, Tenant may, without the approval of Lessor, assign
the Lease, or any part thereof, or sublease the Premises, in whole or in part,
to any of the following (collectively, "Intracorporate Transfers"): (a) a parent
or affiliate of Tenant; or (b) any corporation a majority of whose voting stock
is owned by Tenant; or (c) any corporation in which or with which Tenant, its
corporate successors or assigns, is merged or consolidated, in accordance with
applicable statutory provisions for merger or consolidation of corporation, so
long as the liabilities of the corporations participating in such merger or
consolidation are assumed by the corporation surviving such merger or created by
such consolidation; or (d) any corporation acquiring this Lease and all or
substantially all of Tenant's assets; or (e) any corporate successor to a
successor corporation becoming such by either of the methods described in
subsections (c) or (d). For purposes of this section, the term "affiliate" shall
mean any entity directly controlled by Tenant, under the direct (through one or
more levels or entities) control of tenant or under the common direct control
with Tenant. In no event shall Tenant be permitted to use, in a step
transaction, a series of one or more of such Intracorporate Transfers to
"spin-off" this Lease to independent third parties, that is, if the assignment
to such independent third party would not otherwise be permitted hereunder. As
an example of the foregoing, Tenant shall not assign this Lease to an affiliate
corporation whose assets consist solely of this Lease and the rights granted
herein and thereafter sell the stock of such affiliate corporation to an
independent third party.

Any assignment of this Lease or subletting of the Premises permitted under this
Lease shall be subject to the following conditions:

      (1) that the initial Tenant and any assignee(s) of Tenant which has
      assumed such obligations in a writing with Lessor shall remain liable for
      the full performance of all Tenant obligations hereunder during the entire
      term of this Lease; and

      (2) that any sublease shall be subject and subordinate to this Lease, and
      the subtenant shall comply with all the terms and conditions of this Lease
      (excepting the rental provisions contained herein), including without
      limitation of all restrictions upon the use of the Premises contained
      herein; and

      (3) a copy of the document of the assignment or subletting is delivered to
      Lessor within fifteen (15) days after the full execution thereof by both
      parties thereto; and

      (4) any assignee shall assume in writing all of the Tenant's obligations
      arising from and after the date of assignment under this Lease.

Notwithstanding the foregoing to the contrary, the foregoing limitation shall
not prevent Tenant from allocating space within the Premises (not exceeding
twenty percent (20%) of the aggregate square feet on the Premises, all without
creation of separate entrances to the Premises, to joint venture partners or
associated entities with whom Tenant is engaged in work

                                       24
<PAGE>

in the ordinary course of Tenant's business, so long as (i) each such party
agrees in a writing directed to Lessor to be bound by the terms of this Lease
(other than the obligation to pay Base Rent or Additional Rent), (ii) Tenant
provides immediate written notice to Lessor of such space sharing arrangement,
(iii) the activities being conducted at and from the Premises by such party do
not, in Lessor's reasonable judgment, increase Lessor's insurance premiums
(unless such increase is paid by Tenant) or its risk of incurring liability,
damages or costs for environmental hazards. No such space sharing arrangement,
with or without Lessor's consent, shall in any way whatsoever relieve Tenant of
any of its obligations, duties or liabilities hereunder.

Notwithstanding the foregoing to the contrary, in the event of any proposed
assignment of this Lease or subletting, of space within the Premises (other than
an Intracorporate Transfer), the Lessor shall, for a period of ten (10) business
days after receipt of written request for approval of such assignment or
sublease from the Tenant, have the right to terminate this Lease as to the
portion of the Premises proposed to be sublet by written notice to Tenant
("Lessor's Termination Notice"). Upon receipt of Lessor's Termination Notice,
Tenant shall have -period of ten (10) business days in which to rescind its
request for approval of assignment this Lease or subletting of the Premises. If
Tenant fails to deliver to Lessor written notice rescission of such request
within said ten (10) business day period, this Lease shall be deem terminated on
a date sixty (60) days after receipt of Lessor's Termination Notice (unless
Lessor and Tenant otherwise agree in writing). If this Lease is terminated as to
a portion the Premises only, Base Rent and Additional Rent shall be prorated on
an equitable basis.

                                   ATTORNMENT:

25. In the event of a sale or assignment of Lessor's interest in the Property,
or the Premises or this Lease, or if the Property come into custody or
possession of a mortgagee or any other party whether because of a mortgage
foreclosure, or otherwise, Tenant shall attorn to such assignee or other party
and recognize such party as Lessor hereunder; provided, however, Tenant's
peaceable possession will not be disturbed so long as Tenant performs its
obligations under this Lease. Tenant shall execute, on demand, any commercially
reasonable attornment agreement, as determined by Tenant in its reasonable
judgment, required by any such party to be executed, containing such provisions
and such other provisions as such party may reasonably require.

                         NOVATION IN THE EVENT OF SALE:

26. In the event of the bona fide sale of the Property in an arm's length
transaction, Lessor shall be and hereby is relieved of all of the covenants and
obligations created hereby accruing from and after the date of sale (other than
the obligation to complete the Project as required by Section 4 hereof, and such
sale shall result automatically in the purchaser assuming and agreeing to carry
out all the covenants and obligations of Lessor herein. Notwithstanding the
foregoing provisions of this section, Lessor, in the event of a sale of the
Premises, shall cause to be included in this agreement of sale and purchase a
covenant whereby the purchaser of the Premises assumes and agrees to carry out
all of the covenants and obligations of Lessor herein,

                                       25
<PAGE>

and identifies Tenant as an intended third party beneficiary of such agreement.
Lessor agrees to provide to Tenant an executed original counterpart of any such
agreement.

The Tenant agrees at any time and from time to time upon not less than fifteen
(15) business days prior Written request by the Lessor to execute, acknowledge
and deliver to the Lessor a statement in writing certifying that this Lease is
unmodified and in full force and effect, or if modified, stating the
modifications, that there are no outstanding defaults or, if that not be the
case, specifying any defaults then in existence, and the dates to which the Base
Rent, acceptable to Tenant in its reasonable discretion and other charges have
been paid in advance, if any, it being intended that any such statement
delivered pursuant to this paragraph may be relied upon by any prospective
purchaser of the fee or mortgagee or assignee of any mortgage upon the fee of
the Premises. The failure of Tenant to do so within fifteen (15) days after
written request by the Lessor shall constitute a Tenant Default, without any
requirement of further demand or notice to Tenant. Tenant hereby appoints Lessor
as its attorney-in-fact for the purpose of executing, in the name of Tenant, any
statement required to be executed by Tenant under this Section 26 upon the
failure of Tenant to do so within the time frame specified above.

                             SUCCESSORS AND ASSIGNS:

27. The terms, covenants and conditions hereof shall be binding upon and inure
to the successors and assigns of the parties hereto.

                                QUIET ENJOYMENT:

28. Lessor warrants that it has full right to execute and to perform this Lease
and to grant the estate demised, and that Tenant, upon payment of the rents and
other amounts due and the performance of all the terms, conditions, covenant and
agreements on Tenant's part to be observed and performed under this Lease, may
peaceably and quietly enjoy the Premises for the business uses permitted
hereunder, subject, nevertheless, to the terms and conditions of this Lease,
without hindrance, molestation or disturbance by Lessor or persons claiming
through, under or over Lessor.

                                   RECORDING:

29. Promptly upon execution hereof, Lessor and Tenant agree to join in the
execution of a Memorandum of Lease for the purposes of recordation. Said
Memorandum of Lease shall describe the parties, the Premises and the term of the
Lease and shall incorporate this Lease by reference.

                                   SURRENDER:

30. On the Expiration Date or upon the termination of this Lease or Tenant's
right to possession of the Premises upon a day other than the Expiration Date,
Tenant shall peaceably surrender the Premises broom-clean in good order,
condition and repair, excepting only reasonable wear and tear, damage by fire or
other casualty to be insured against by Lessor

                                       26
<PAGE>

hereunder, and any taking by eminent domain. For purposes of this Lease, the
term "reasonable wear and tear" shall be based on the presumptions that: (i)
Tenant shall have conducted its business at and from the Premises for not more
than ten (10) hours per day, five (5) days per week in the office area and
twenty-two (22) hours per day seven (7) days per week in the production area,
and (ii) the HVAC System will be operated for twenty-four (24) hours per day
seven (7) days per week to ensure a controlled environment in the production
area. The Tenant shall surrender the HVAC System in good working order and
condition. Not later than thirty (30) days following the Expiration Date or
earlier date of termination of this Lease or Tenant's right to possession of the
Premises, Tenant shall provide to Lessor an inspection report with respect to
the HVAC System performed by a registered engineer or HVAC contractor acceptable
to Lessor certifying to Lessor, in form and substance acceptable to Lessor in
its reasonable discretion, that the HVAC System is in good working order and
condition and that all necessary maintenance of and repairs to the HVAC System
have been completed. On or before the Expiration Date or upon termination of
this Lease on a day other than the Expiration Date, Tenant shall, at its
expense, remove all trade fixtures, personal property and equipment from the
Premises; any property not so removed by Tenant shall be deemed to have been
abandoned. Tenant shall also remove, at its expense, all alterations and
improvements which Lessor has given notice in writing to Tenant to remove
pursuant to the provisions of Section 11 hereof; provided, however, that Tenant
shall have no obligation to remove the Tenant Improvements described in Section
4 hereof. Any damage caused in the removal of such items shall be repaired by
Tenant and at its expense prior to the expiration of the Lease Term or earlier
termination of this Lease or Tenant's right to possession of the Premises. All
alterations, additions, improvements and fixtures (other than trade fixtures)
which shall have been made or installed by Lessor or Tenant upon the Premises
and all floor covering so installed (other than alterations which Lessor has
given notice in writing to Tenant to remove pursuant to the provisions of
Section 11 hereof) shall remain upon and be surrendered with the Premises as a
part thereof, without disturbance, molestation or injury, and without charge, at
the expiration of termination of this Lease. Tenant shall promptly surrender all
keys for the Premises to Lessor at the place then fixed for payment of rent and
shall inform Lessor of combinations of any locks and safes on the Premises.
Tenant's obligations under this Section 30 shall be continuing obligations and
shall survive termination of this Lease or the expiration of the Lease Term.

                                  HOLDING OVER:

31. In the event of a holding over by Tenant after expiration or termination of
this Lease without the consent in writing of Lessor (excluding any period during
which Lessor and Tenant are both negotiating in good faith an extension of the
Lease Term), Tenant shall pay rent for such occupancy at the rate of one hundred
twenty-five percent (125%) of the last-current Base Rent, prorated for the
entire holdover period. Tenant shall also pay all Additional Rent accruing
during the holdover period. Except as otherwise agreed in writing, any holding
over with the written consent of Lessor shall constitute Tenant a month-to-month
tenant.

                                       27
<PAGE>

                                    CONSENTS:

32. Whenever provision is made under this Lease for either party securing the
consent or approval by the other, such consent or approval shall only be in
writing. No such consent by either party shall be unreasonably withheld, delayed
or conditioned.

                                    NOTICES:

33. Any notice required or permitted under this Lease shall be given or secured
if personally delivered or sent by registered or certified return receipt mail
to Manufacturers' Services Limited, with a copy to Tenant at the Premises and to
Lessor at One State Farm Plaza, Bloomington, Illinois 61710, Attention:
Investment Real Estate E-10, with a copy to the address then fixed for the
payment of rent as provided in Section 7 of this Lease, and either party may by
like written notice at any time designate a different address to which notices
shall subsequently be sent or rent to be paid. Any mailed notice shall be deemed
given if refused when received or tendered for delivery.

                                LESSOR SELF HELP:

34. Except as otherwise provided herein, the Tenant covenants and agrees that if
it shall any time fail to take out, pay for, maintain or deliver any of the
insurance policies above required, or, subject to Tenant's right to contest in
good faith disputed items of Additional Rent as set forth in Section 6(c)
hereof, fail to make any other payment or perform any other act on its part to
be made or performed as in this Lease provided and such default shall continue
beyond applicable notice and grace periods, then the Lessor may, but shall not
be obligated so to do, upon not less than ten (10) days prior notice to the
Tenant (other than payments necessary to obtain or maintain insurance coverages
required hereunder or to avoid the imposition of penalties, in which case no
such notice is required) and without waiving or releasing the Tenant from any
obligations of the Tenant in this Lease contained, pay any such cost or expense,
effect any such insurance coverage and pay premiums therefor, and may make any
other payment or perform any other act on the part of the Tenant to be made and
performed as in this Lease provided, in such manner and to such extent as the
Lessor may deem desirable, and in exercising any such right, to also pay all
necessary and incidental costs and expenses, employ counsel and incur and pay
reasonable attorneys' fees. All reasonable sums so paid by Lessor and all
reasonable, necessary and incidental costs and expenses in connection with the
performance of any such act by the Lessor, together with interest thereon at the
Default Rate from the date of making of such expenditure by Lessor, shall be
deemed Additional Rent hereunder, and shall be payable to Lessor on demand.
Tenant covenants to pay any such sum or sums with interest as aforesaid and the
Lessor shall have the same rights and remedies in the event of the nonpayment
thereof by Tenant as in the case of default by Tenant in the payment of the Base
Rent payable under this Lease.

                                LESSOR'S DEFAULT:

35. Any of the following occurrences, conditions or acts by Lessor shall
constitute a "Lessor Default": (a) Lessor's failure to make any payments of
money due Tenant hereunder

                                       28
<PAGE>

within ten (10) days after the receipt of written notice from Tenant that same
is overdue; or (b) Lessor's failure to perform any non-monetary obligation of
Lessor hereunder within thirty (30) days after receipt of written notice from
Tenant to Lessor specifying such default and demanding that the same be cured;
provided that, if such default cannot with due diligence be wholly cured within
such thirty (30) days, Lessor shall have such longer period as may be reasonably
necessary to cure the default, so long as Lessor proceeds promptly to commence
the cure of same within such thirty (30) day period and diligently prosecutes
the cure to completion and provided further that in the case of an emergency,
Tenant shall be required to give only such notice as is reasonable under the
circumstances.

Upon the occurrence of a Lessor Default, at Tenant's option, in addition to any
other remedies which it may have, and without its actions being deemed a cure of
Lessor's default, Tenant may (i) pay or perform such obligations and offset all
reasonable sums so paid by Tenant and all reasonable necessary and incidental
costs and expenses paid or incurred by Tenant in connection therewith against
the Base Rent, Additional Rent and other charges due Lessor hereunder unless, by
written notice to Tenant, Lessor contests whether a Lessor Default has occurred
or is continuing, in which case such right of offset shall only be effective if
final, non-appealable judgment against Lessor shall have been entered by a court
of competent jurisdiction; or (ii) sue for damages. Any amounts so determined to
be due from Lessor to Tenant hereunder shall bear interest at the Default Rate
from the date such costs or expenses were incurred.

                                    GENERAL:

36. The Lease does not create the relationship of principal agent or of
partnership or of joint venture or of any association between Lessor and Tenant,
the sole relationship between the parties hereto being that of Lessor and
Tenant.

No waiver of any default of Tenant or Lessor hereunder shall be implied from any
omission by Lessor or Tenant to take any action on account of such default if
such default persists or is repeated, and no express waiver shall affect any
default other than the default specified in the express waiver and that only for
the time and to the extent therein stated. One or more waivers by Lessor or
Tenant shall not then be construed as a waiver of a subsequent breach of the
same covenant, term or condition. The consent to or approval by Lessor of any
act by Tenant requiring Lessor's consent or approval shall not waive or render
unnecessary Lessor's consent to or approval of any subsequent similar act by
Tenant shall be construed to be both a covenant and a condition. No action
required or permitted to be taken by or on behalf of Lessor under the terms or
provisions of this Lease shall be deemed to constitute an eviction or
disturbance of Tenant's possession of the Premises so long as, in taking such
action, Lessor acts in a manner consistent with its obligations hereunder. All
preliminary negotiations are merged into and incorporated in this Lease. The
laws of the State of Minnesota shall govern the validity, performance and
enforcement of this Lease.

This Lease and the exhibits, if any, attached hereto and forming a part hereof,
constitute the entire agreement between Lessor and Tenant affecting the Premises
and there are no other agreements, subsequent alteration, amendment, change or
addition to this Lease shall be

                                       29
<PAGE>

binding upon Lessor or Tenant unless reduced to writing and executed in the same
form and manner in which this Lease is executed.

If any agreement, covenant or condition of this Lease or the application thereof
to any person or circumstance shall, to any extent, be invalid or unenforceable,
the remainder of this Lease, or the application of such agreement, covenant or
condition to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby and each agreement,
covenant or condition of this Lease shall be valid and be enforced to the
fullest extent permitted by law.

The responsibility of either Lessor or Tenant hereunder is only to perform the
respective covenants, duties and obligations of such party hereunder. In the
event of the failure of either party to do so, the defaulting party shall be
liable to the non-defaulting party only for the direct losses, damages, costs
and expenses from such default, along with other costs and expenses expressly
set forth herein, and shall not be liable for loss of profits, indirect or
consequential damages.

                               HAZARDOUS MATERIAL:

37.   (a) Tenant covenants through the Lease Term, at Tenant's sole cost and
      expense, promptly to comply strictly with all laws and ordinances and the
      orders, rules and regulations and requirements of all federal, state and
      municipal governments and appropriate departments, commission, boards, and
      officers thereof, relating to the use, handling, storage, transport or
      disposal of "Hazardous Material," as defined below.

      (b) In the event any Hazardous Material (hereinafter defined) is brought
      or caused to be brought into or onto the Property or the Premises by
      Tenant, its agents, contractors, employees or invitees, Tenant shall
      handle any such material in compliance with all applicable federal, state
      and/or local regulations. For purposes of this section, "Hazardous
      Material" means and includes any hazardous, toxic or dangerous waste,
      substance or material defined as such in (or for purposes of) the
      Comprehensive Environmental Response, Compensation, and Liability Act, any
      so-called "Superfund" or "Superlien" law, or any federal, state or local
      statute, law, ordinance, code, rule, regulation, order decree regulating,
      relating to, or imposing liability or standards of conduct concerning, any
      hazardous, toxic or dangerous waste, substance or materials, as now or at
      any time hereafter in effect. Tenant shall submit to Lessor on or before
      January 15 of each calendar year during the term hereof copies of its
      approved hazardous materials communication plan, OSHA monitoring plan, and
      permits required by the Resource Recovery and Conservation Act of 1976, if
      Tenant is required to prepare, file or obtain any such plans or permits,
      all Material Data Safety Sheets prepared by, for or on behalf of Tenant
      and any and all reports, log sheets or other documentation which Tenant
      submits or provides to any governmental agency or entity in connection
      with the use, handling, storage, transport or disposal of any Hazardous
      Material (all of the foregoing being hereinafter collectively referred to
      as "Tenant Environmental Documentation." Lessor shall have the right, at
      reasonable times and on reasonable advance notice, to inspect (and, if
      Lessor so desires, copy) any or all

                                       30
<PAGE>

      Tenant Environmental Documentation and Tenant shall cooperate in good
      faith with Lessor in connection with any request for inspection thereof.
      In addition, at any time that Lessor shall have any reasonable cause to
      believe that a release of any Hazardous Material has occurred in violation
      of any applicable law either on the Property or affecting the Property,
      Lessor may enter the Property and the Premises at reasonable times and on
      reasonable advance notice to conduct any inspections or tests which
      Lessor, in its commercially reasonable discretion, deems necessary or
      advisable to determine the existence, nature, extent or cause of such
      release. Lessor shall conduct all such inspections and testing in a manner
      intended to minimize any interference with the business of Tenant. Tenant
      agrees to cooperate in good faith in connection with any such inspection
      or test. The costs of all such inspections and testing shall be borne by
      Lessor; provided, however, that Tenant shall reimburse Lessor for the
      costs of all such inspections and testing if the identified release was
      caused by Tenant, its agents, employees or contractors. Subject to the
      limitations set forth in Section 36 above concerning loss of profits,
      indirect or consequential damages, Tenant will indemnify and hold harmless
      Lessor from any losses, liabilities, damages, costs or expenses (including
      reasonable attorneys' fees) which Lessor may suffer or incur as a result
      of any introduction, spill or release of any kind or nature whatsoever
      caused by Tenant, its agents, employees, contractors, or licensees into or
      onto the Property or the Premises, or any adjacent property, of any
      Hazardous Material at any time during the Lease Term. This section shall
      survive the expiration or sooner termination of this Lease. By way of
      clarification and not limitation, the parties agree that the Lessor's
      property manager from time to time or said property manager's employees,
      agents, contractors or licensees are not employees, agents, contractors or
      licensees of Tenant.

      (c) Tenant acknowledges receipt of (i) a certain Phase 1 Environmental
      Site Assessment Update dated August 29, 1996 prepared by Braun Intertec
      Corporation with respect to the Property; and (ii) a certain Phase 1
      Environmental Site Assessment prepared by Nova Environmental Services,
      Inc. Dated March 22, 1990 with respect to the Property (collectively, the
      "Environmental Reports"). Even though Landlord may otherwise have no
      responsibility or liability to any party therefor (due to lack of
      association with any pre-existing condition or due to the off-site
      source(s) thereof), and subject to the limitations set forth in Section 36
      above concerning loss of profits, indirect or consequential damages,
      Landlord hereby agrees that it will hold harmless and defend Tenant from
      any costs, liabilities or expenses to which Tenant may be exposed in
      connection with governmentally required remediation or cleanup of any
      pre-existing Hazardous Material conditions at the Property which are
      referred to in the Environmental Reports. This section shall survive the
      expiration or sooner termination of this Lease.

      (d) The Tenant shall provide to Landlord immediate notice of any (A)
      notice of any violation, proposed violation, claim, administrative or
      judicial complaint, order or proposed order, relating to the Property
      alleging violations of any federal, state or local environmental law or
      regulation requiring Lessor or Tenant to take any action in connection
      with the release of any Hazardous Material or (B) any notice from a
      federal, state or local governmental agency or private party alleging that
      Lessor or Tenant may

                                       31
<PAGE>

      be liable or responsible for costs associated with a response or cleanup
      of a release of any Hazardous Material.

                                 FORCE MAJEURE:

38. Either party's failure to perform the terms and conditions of this Lease, in
whole or in part, shall not be deemed a breach or a default hereunder or give
rise to any liability of such party to the other if such failure is attributable
to any unforeseeable event beyond such party's reasonable control and not caused
by the negligent acts or omissions or the willful misconduct of such party,
including, without limitation, flood, drought, earthquake, storm, pestilence,
lightning, and other natural catastrophes and acts of God; epidemic, war, riot,
civic disturbance or disobedience, and act of the public enemy; fire, accident,
wreck, washout, and explosion; strike, lockout, labor dispute, and failure,
threat of failure, or sabotage of such party's facilities; delay in
transportation or car shortages, or inability to obtain necessary labor,
materials, components, equipment, services, energy, or utilities through such
party's usual and regular sources at usual and regular prices; and any law,
regulation, order or injunction of a court or governmental authority, whether
valid or invalid and including, without limitation, embargoes, priorities,
requisitions, and allocations or restrictions of facilities, equipment or
operations. In the event of the occurrence of such a Force Majeure event, the
party unable to perform promptly shall notify the other party.

                                    CAPTIONS:

39. The captions are inserted only as a matter of convenience and for reference,
and in no way define, limit or describe the scope of this Lease nor the intent
or any provision thereof.

                                LESSOR ESTOPPEL:

40. Lessor shall, upon receipt of a request from Tenant therefor, execute and
deliver to Tenant or to any proposed lender or purchaser of Tenant, or its
assets, a certificate certifying that this Lease is in full force and effect and
that there are no outstanding defaults and if that not be the case, specifying
any defaults then in existence and containing such other reasonable information
as is customarily included in Lessor Estoppel Certificates which, in any event,
shall be acceptable to Lessor in its reasonable discretion.

                                  ATTACHMENTS:

41. See also Exhibits A through inclusive, which Exhibits are attached hereto
and made a part hereof.

      Exhibit                              Description
      -------                              -----------

      Exhibit A                Legal Description
      Exhibit B                Site Plan of Premises
      Exhibit C                Outline Specification for Lessor's Work
      Exhibit C-l              List of Approved Plans for Lessor's Work

                                       32
<PAGE>

      Exhibit D                Outline Specification for Tenant Improvements
      Exhibit D-l              List of Approved Plans for Tenant Improvements
      Exhibit E                List of Warranties
      Exhibit F                Tenant's Sign Criteria
      Exhibit G                List of Operating Expenses

                                 SUBMISSION:

42. Submission of this instrument to Tenant or proposed Tenant or his agents or
attorneys for examination, review, consideration or signature does not
constitute or imply an offer to lease reservation of space, or option to lease,
and this instrument shall have no binding legal effect until execution hereof by
both Lessor/Owner and Tenant or its agents.

                                 REPRESENTATION:

43. It is agreed and understood that Mr. Brian Doyle, agent or broker with Welsh
Companies, Inc., is representing Lessor, and that Mr. Michael Fardy, agent of
Welsh Companies, Inc. is representing Tenant, and all leasing or brokerage
commissions payable to Welsh Companies, Inc. (including the above-named agents)
shall be paid by Lessor. Tenant represents and warrants that it has not engaged
the services of any other sales or leasing representative or broker in
connection with this Lease or the Premises.

                              SUBMISSION OF LEASE:

44. Submission of this Lease to Tenant prior to execution hereof by Lessor does
not constitute and shall not be interpreted as, an offer by Lessor. This Lease
shall become a binding contract only upon execution hereof by both Lessor and
Tenant. However, this Lease shall be null and void in all respects if the same
has not been signed by both Lessor and Tenant, and executed original
counterparts thereof delivered to each such party, by 5:00 p.m., Central
Standard Time on April ___, 1997.

                                       33
<PAGE>

IN WITNESS WHEREOF, the Lessor and the Tenant have caused these presents to be
executed in form and manner sufficient to bind them at law, as of the day and
year first above written.

Tenant:                                    Lessor:

MANUFACTURER'S SERVICES LIMITED -          AMBERJACK, LTD.
ROSEVILLE, INC.

By: /s/ Anthony R. Cammavano               By: /s/ Neil O. Brown
    --------------------------------           ---------------------------------
Its: Division V.P.                         Its: President
     -------------------------------            --------------------------------

                                           And: Robert B. O'Dell
                                                --------------------------------
                                           Its: Assistant Secretary
                                                --------------------------------

STATE OF MINNESOTA     )
                       )  ss:
COUNTY OF HENNIPIN     )

On this 14 day of April, 1997, personally came before me, a Notary Public
within and for said County, Ramsey, the Division VP of Manufacturer's Service,
Limited - Roseville, Inc., a Minnesota corporation, and acknowledged that he
executed the same as his free act and deed on behalf of such corporation.

                                           /s/ Ruth M. Belmonte
[NOTARY SEAL]                              -------------------------------------
                                           Notary Public
                                           My commission expires: 1/31/2000
                                                                  --------------

STATE OF ILLINOIS      )
                       )  ss:
COUNTY OF MCLEAN       )

On this 16th day of April, 1997, personally came before me, a Notary Public
within and for said County, Neil O. Brown and Robert O'Dell, being respectively
the, President and Assistant Secretary of AmberJack, Ltd., an Arizona
corporation, acknowledged that they executed the same as their free act and deed
on behalf of such corporation.

                                           /s/ Lori Collier
                                           -------------------------------------
                                           Notary Public
                                           My commission expires:
                                                                  --------------

                                           [NOTARY SEAL]

                                       34
<PAGE>

                                   EXHIBIT A

                              (Legal Description)

Parcel 1:
      The South 30 acres of the Northwest 1/4 of Section 21, Township 30, Range
      23, except the West 884 feet thereof and except the following:

            Beginning at the point on the South line of said 30 acres, 2033.0
            feet East of the Southwest corner thereof; thence East to the
            Southeast corner thereof; thence North to the Northeast corner
            thereof; thence West along the North line of said 30 acres to a
            point 1768.0 feet East of the Northwest corner thereof; thence South
            28 degrees 41 minutes East 559.7 feet, more or less, to the point of
            beginning, except part deeded to State of Minnesota in Book "1729"
            RCR, page 988 and Book "2033" RCR, page 528:

Parcel 2:
      That part of the South 30 acres of the South Half of the Northwest Quarter
      of Section 21, Township 30 North, Range 23 West, Ramsey County, Minnesota,
      described as follows:

            Beginning at a point on a line run parallel with and distant 33 feet
            Easterly of Line 1 described below, distant 200 feet Northerly of
            its intersection with the East and West quarter line of said
            Section 21; thence run Southeasterly to a point on said East and
            West quarter line, distant 220 feet Easterly of said intersection;
            thence run Westerly along said East and West quarter line for 141.92
            feet; thence deflect to the right on a non-tangential curve, concave
            to the Northeast, having a delta angle of 57 degrees 43 minutes 04
            seconds, a radius of 167 feet and a chord azimuth of 335 degrees 03
            minutes 51 seconds, for 168.23 feet, more or less, to an
            intersection with said 33 foot parallel line; thence run northerly
            on said 33 foot parallel line for 52.28 feet to the point of
            beginning;

            Line 1:     Beginning at a point on the North line of said Section
                        21, distant 1180 feet East of the Northwest corner
                        thereof; thence run Southerly at an angle of 75 degrees
                        28 minutes 41 seconds from said North section line
                        (measured from West to South) for 1105.99 feet; thence
                        deflect to the left at an angle of 17 degrees 04 minutes
                        13 seconds for 167.08 feet; thence deflect to the right
                        on an 00 degree 44 minute 14 second curve (delta angle
                        07 degrees 08 minutes 33 seconds) for 968.91 feet;
                        thence on a tangent to said curve for 600 feet and there
                        terminating.

            together with

                        That part of the South 30 acres of the South Half of the
                        Northwest Quarter of Section 21, Township 30 North,
                        Range 23 West, Ramsey County, Minnesota, described as
                        follows:

<PAGE>

Parcel 2 (continued)

                        From a point on Line 1 described above, distant 499.53
                        feet North of its point of termination, run Easterly at
                        right angles to said Line 1 for 33 feet to the point of
                        beginning; thence continue Easterly on the last
                        described course for 33 feet; thence run Northerly
                        parallel with said Line 1 for 170.53 feet, more or less,
                        to the North line of said South 30 acres; thence run
                        West on said North line to its intersection with a line
                        run parallel with and distant 33 feet East of said Line
                        1; thence run South on said 33 foot parallel line for
                        167.76 feet, more or less, to the point of beginning.

Note: Parcel designations are for convenience of reference only and do not
constitute an integral part of the legal description.

<PAGE>

                                    EXHIBIT B

                                    [GRAPHIC]
                      [OFFICE/WAREHOUSE FACILITY SITE PLAN]

<PAGE>

                                    EXHIBIT C

                            OUTLINE SPECIFICATION FOR
                         THE DESIGN AND CONSTRUCTION OF

                                Office/Warehouse

                          Arden Hills Interstate Center
                                     Phase I
                             Arden Hills, Minnesota

Prepared by:

       Welsh Construction Company
       March 26, 1997
<PAGE>

                                                                               2

                                TABLE OF CONTENTS

01000       GENERAL CONDITIONS                                              3

02000       SITE WORK                                                       6

03000       CONCRETE                                                        8

04000       MASONRY                                                         9

05000       METALS                                                          9

06000       CARPENTRY AND MILLWORK                                          9

07000       THERMAL AND MOISTURE PROTECTION                                 9

08000       DOORS AND WINDOWS                                              10

09000       FINISHES                                                       11

10000       SPECIALTIES                                                    11

11000       EQUIPMENT                                                      11

15000       MECHANICAL                                                     11

16000       ELECTRICAL                                                     12

            ALLOWANCES                                                     13

            QUALIFICATIONS                                                 14

            LIST OF EXHIBITS                                               15
<PAGE>

                                                                               3

01000 GENERAL CONDITIONS

1.    INTENT

      This outline specification and the preliminary drawings outline the
      general scope of work for the design and construction of a 154,264 square
      foot office/warehouse facility in Arden Hills, Minnesota. Contractor shall
      provide all design, supervision, labor, materials, equipment, and general
      requirements necessary for the complete and timely construction of the
      project specified herein.

2.    DESIGN

      A.    Architecture and Engineering: Contractor shall prepare a complete
            set of working drawings and specifications in accordance with these
            outline documents, applicable building codes and zoning
            requirements, and the requirements of the owner. Additions or
            deletions to the scope of work incorporated into the final drawings
            and specifications at the direction of the owner will result in an
            appropriate adjustment to the contract price.

3.    SUPERVISION

      A.    Project Manager Contractor shall assign a project manager to this
            project who shall be responsible for the complete execution of all
            work. The project manager's responsibilities shall include
            interfacing the project as required with the owner and the developer
            throughout the entire design and construction process, obtaining the
            required building permits, and managing the construction process
            through completion of the project.

      B.    Superintendent: Contractor shall assign a superintendent to this
            project who shall be responsible for the supervision of all field
            construction in progress. The superintendent's responsibilities
            shall include the scheduling and direct supervision of field
            construction forces, interfacing as required with building
            inspection officials, and ensuring compliance of work in place with
            drawings and specifications.

4.    CONSTRUCTION SCHEDULE

      Contractor shall prepare a progress schedule for the project. This
      schedule shall indicate the dates for starting and completion of the
      various stages of construction, and shall be updated on a regular basis to
      reflect the actual progress of the work.

      This proposal is based upon a five-month construction schedule with
      construction commencing on or about February 15, 1997. No winter weather
      costs are included in the contract price. Utility costs are projected to
      be the responsibility of the owner on/or about June 1,1997.
<PAGE>

                                                                               4

5.    TEMPORARY CONSTRUCTION

      Contractor shall provide all required temporary construction, temporary
      facilities and temporary utilities required to complete project
      construction including heated weathertight enclosures, temporary roadways
      and parking areas, erosion control structures, material storage areas,
      enclosures for tools and other equipment, a heated and air-conditioned
      field office, temporary utility services for construction use, and
      temporary toilet facilities as required.

6.    CLEAN-UP

      Contractor shall be responsible for construction trash removal services
      and shall at all times keep the building and site free from accumulation
      of debris. Upon completion, the building shall be turned over to owner in
      a "broom clean" condition.

7.    WARRANTY

      Contractor warrants that all materials and equipment shall be new unless
      otherwise specified, and shall be free from defects for a period of one
      year from the date of substantial completion of the work. Any extended
      warranties obtained from suppliers or subcontractors shall be passed on to
      the owner.

8.    INSURANCE

      Contractor shall maintain Worker's Compensation insurance, Comprehensive
      Public Liability insurance, and Builder's Risk insurance, "All Risk" form,
      for this project for the duration of the work. Deductible losses shall be
      the responsibility of the owner.

9.    QUALITY ASSURANCE

      Contractor shall prepare and implement a Quality Assurance project for
      this project. The Quality Assurance program shall include independent
      agency testing and observation of soils, bituminous paving, roofing, steel
      connections, and cast-in-place concrete, as well as inspection of work in
      progress by project designers. The owner will have the right to perform
      inspections and independent tests at any time.

10.   ITEMS FURNISHED BY THE OWNER

      The following items shall be furnished by the owner prior to commencement
      of design work by contractor. If requested by the owner, the contractor
      shall assist in the selection of agencies to perform these services.

      A.    Property Survey: The owner will retain a registered land surveyor to
            prepare a survey for the proposed site. The survey will conform to
            the "Minimum Standard Detail Requirements for ALTA/ACSM Land Title
            Surveys" jointly established and adopted in 1992 by the American
            Land Title Association and the American Congress on Surveying and
            Mapping, meeting the accuracy requirements of an urban class survey,
            showing as additional items, the land area and the contours of
<PAGE>

                                                                               5

            the project site, building setbacks, the location of all utilities
            service the project site which are on or adjacent to the project
            site, and all easements. Owner shall obtain all easements necessary
            for access to the project site, including easements for installation
            and maintenance of utilities, and (as necessary) easements, leases
            or licenses for the use of area outside the project site for the
            storage of materials or equipment used or useful in the performance
            of the project.

      B.    Hazardous Materials Reports: When there is reason to suspect the
            presence of hazardous materials on the site or within an existing
            structure, or when such materials are discovered during
            construction, the owner will retain an independent testing agency to
            perform investigation and testing and to prepare a Hazardous
            Materials Report. Removal, containment, disposal or other procedures
            required for dealing with such materials will be the responsibility
            of the owner, and the contract time will be extended by the
            resulting period of delay, if any.

11.   SOIL REPORT

      Contractor shall retain an independent testing agency to perform
      subsurface exploration (soil borings) and prepare and engineered
      foundation report (Soil Report) for the proposed project. The building
      design and site preparation shall conform to the requirements of the soil
      report. Soil conditions encountered during excavation substantially
      different from those described in the Soil Report may result in an
      equitable adjustment to the contract price, as documented and necessary,
      (up or down, as applicable) subject to Owner's reasonable approval, which
      shall not be unreasonably withheld or denied.

12.   PERMITS AND FEES

      Contractor shall pay for all required building permits necessary for the
      construction of the project. An allowance of $ 28,500.00 is included for
      SAC (and WAC) charges. Park dedication fees and other assessments will be
      paid by the owner,

13.   BONDS

      A.    Performance & Payment Bond: If requested by the owner, contractor
            shall furnish a surety company's payment and performance bond in the
            amount equal to the full amount of the contract. The bond shall be
            issued by a financially responsible surety company. All costs for
            furnishing a bond (including those applicable to change orders) will
            be the responsibility of the owner as an extra cost to the contract.

      B.    Site Improvement & Landscaping Bond: The owner will provide any site
            improvement or landscaping bonds required by the local governmental
            authority. Contractor shall assist the owner and/or the developer in
            preparing any required documentation for the bonds.
<PAGE>

                                                                               6

14.   RECORD DOCUMENTS

      Upon completion of the project, contractor shall provide the owner with a
      complete set of record documents including record drawings, a list of
      subcontractors used on the project, manufacturer's warranties, operation
      and maintenance manuals for major pieces of equipment, and instruction
      manuals when appropriate for building systems.

15.   PROGRESS PAYMENTS

      This proposal is based upon contractor receiving monthly progress
      payments. Contractor shall submit an Application for Payment to the owner
      on or about the 5th of each month for work completed during the previous
      month. Payment will be due to the contractor within (30) days of owner's
      receipt of Application for Payment.

      A retainage equal to 10% of each Application for Payment shall be withheld
      until the project reaches 50% completion, after which, no additional
      retainage shall be withheld. No retainage to be held on General
      Conditions.

      It is the owner's responsibility to secure adequate financing for the
      project.

16.   EQUAL EMPLOYMENT OPPORTUNITY POLICY

      Contractor shall comply with all current Federal, State and local laws
      governing Equal Employment Opportunity.

02000 SITEWORK

1.    EARTHWORK

      The contractor shall provide all required site clearing, mass excavation
      and filling, structural excavation and backfill and fine grading as
      required for the proposed building structure, paved areas, and proper site
      drainage.

      Topsoil shall be stockpiled during construction from on-site materials and
      spread over disturbed areas to be landscaped with sod, seed or other plant
      materials.

      For proposal purposes, the contractor has included earthwork required for
      a complete project contingent upon the following conditions:

      A.    A balanced site not requiring imported or exported materials.

      B.    Existing soil conditions suitable for 3000 PSF spread footings at
            normal footing depths, pavement subgrades, and utility installations
            without soil correction.

      C.    Ground water levels lower than planned excavations for foundations
            and utilities.

      Actual soil conditions differing from those stated above will result in an
      appropriate adjustment to the contract price
<PAGE>

                                                                               7

2.    UTILITIES

      The contractor shall provide on-site utility work required for connection
      to utility services, contingent upon adequate utility services located
      immediately adjacent to the site via publicly accessible utility
      easements. Fees imposed by serving utility companies for the installation
      of on-site electrical, telephone, or gas mains arc not anticipated and are
      not included in the contract price.

      A.    Sanitary sewer: Sanitary sewer service shall be provided complete
            including connection to the sewer main in the street and an on-site
            sewer main to the building.

      B.    Water: Water service shall be provided to the building for domestic
            water and fire protection systems complete including connection to
            the water main in the street and on-site water main to the building.
            Water mains and tire hydrants shall be provided for fire service as
            required by the local fire marshall.

      C.    Storm Drainage: Provisions shall be made for the proper drainage of
            storm water from roof, parking, drive and landscaped areas.

      D.    Electrical: Electrical service to the building shall be provided by
            the serving utility company.

      E.    Gas: Gas service to the building shall be provided by the serving
            utility company.

      F.    Telephone: Telephone service to the building shall be provided by
            the serving utility company.

3.    LANDSCAPING

      Site landscaping shall be designed and installed in accordance with the
      requirements of the City of Arden Hills and as approved by the owner. An
      allowance of $ 59,341 has been included to cover seeding, sodding,
      imported topsoil, trees, mulch, edging and shrubbery noted on the contract
      documents. An allowance of $15,450.00 has been included for irrigation
      systems to support the landscaping design.

4.    BITUMINOUS AND CONCRETE PAVING

      Bituminous and concrete paving shall be provided complete including curb
      cuts and driveways as indicated on the site plan.

      Paved areas subject to truck traffic shall consist of 10" of aggregate
      base and 4" of MNDOT #2341 bituminous wearing surface. Paved areas subject
      to car traffic shall consist of 6" of aggregate base and 3" of MNDOT #2341
      bituminous wearing surface.

      Concrete dolly pads shall be provided at the truck docks and shall consist
      of 8" of granular base and 6" of 4000 PSI air entrained concrete,
      reinforced with welded wire or fiber mesh. Open, sawcut control joints
      shall be provided for the control of shrinkage cracking. A dolly strip
      15-ft wide and 520-ft long is included in the contract price.
<PAGE>

                                                                               8

      The bituminous and concrete design indicated are included for proposal
      purposes. As a part of the final design work for this project, the soil
      testing agency will make recommendations for engineered paving designs
      based on actual soil conditions and proposed usages. Actual paving designs
      differing from those stated above will result in an appropriate adjustment
      to the contract price.

      Cast-in-place concrete curbs and gutters shall be provided at the
      perimeter of all paved parking and drive areas.

      Parking area striping and traffic markings shall be provided as indicated
      on the drawings.

5.    SITE LIGHTING

      Parking and drive areas shall be lighted with (8) each, 25-ft high,
      pole-mounted metal halide fixtures mounted on concrete bases with
      timeclock control. Building mounted fixtures will be utilized where
      possible.

03000 CONCRETE

1.    CONCRETE FOUNDATIONS

      Concrete foundations shall be spread footings consisting of strip
      footings, pads, piers, and cast-in-place walls constructed with concrete
      and reinforcing steel as required by the final structural design.

2.    CONCRETE SLABS

      The interior slab on grade shall be constructed of 6" thick 4000 PSI
      concrete. Slabs shall be reinforced with welded wire or fiber mesh cast in
      place on a 6" (+/- 1") sand cushion.

      Smooth dowel connections shall be provided at slab on grade construction
      joints. Sawcut control joints shall be provided for the control of
      shrinkage cracking. These sawcut joints are not assumed to be caulked.

      Concrete slabs shall be treated with liquid applied curing compound.

3.    PRE-CAST CONCRETE

      Exterior walls shall be 12" thick. Insulated, pre-cast concrete panels
      with a flat exterior finish.

4.    SIDEWALKS

      Sidewalks shall be constructed with 3000 PSI, air entrained,
      non-reinforced concrete. Sidewalks shall be broom finished unless
      indicated otherwise on the drawings.
<PAGE>

                                                                               9

04000 MASONRY

1.    CONCRETE BLOCK

      Interior walls at the warehouse area shall be constructed of concrete
      block where indicated on the drawings.

05000 METALS

1.    STRUCTURAL STEEL

      The structural framing system for the building shall consist of steel
      columns, beams or truss girders, bar joists, and white primed metal roof
      deck with column locations as indicated on the drawings.

      A minimum clear height of 24-ft shall be provided under the steel
      structure in warehouse areas.

2.    MISCELLANEOUS METALS

      Steel tread dock stairs, access ladders and concrete filled pipe bollards
      shall be provided as indicated on the drawings. Steel casings shall be
      provided at overhead door openings.

06000 CARPENTRY AND MILLWORK (Per scope indicated in the contract drawings)

1.    MISCELLANEOUS CARPENTRY

      Roof cants, curbs and other miscellaneous blocking shall be provided as
      required.

07000 THERMAL AND MOISTURE PROTECTION

1.    BUILDING INSULATION

      The overall building thermal envelope shall conform to the requirements of
      the Minnesota Energy Code.

      A.    Exterior pre-cast walls: Exterior pre-cast wall panels shall include
            2-1/2" of expanded polystyrene insulation to provide an approximate
            overall R value of 12.

      B.    Perimeter subgrade Walls: Perimeter masonry or concrete subgrade
            foundation walls shall be insulated from top of footing (or frost
            line) to bottom of slab with 2" of extruded polystyrene insulation
            applied to the inside face of the wall.

      C.    Roof insulation: Roof areas shall be insulated with rigid insulation
            installed over metal deck to provide an approximate overall R value
            of 22. A thermal barrier shall be provided on the metal roof deck
            where required by fire or building codes.
<PAGE>

                                                                              10

2     ROOFING SYSTEM

      The roofing system shall consist of a 3-ply built-up asphalt bituminous
      membrane over rigid insulation. Roof edge fascia and other visible
      flashings shall be pre-finished metal. Roof areas shall drain to interior
      roof drains. The roofing system shall be guaranteed free from defects for
      a period of 10 years by the roofing manufacturer.

      A ship's ladder and roof hatch shall be provided for roof access.

08000 DOORS AND WINDOWS (Per scope indicated in the contact drawings)

1.    PEDESTRIAN DOORS

      Warehouse area doors shall be flush hollow metal doors set in hollow metal
      frames.

      A.    Hollow Metal Doors: Hollow metal doors shall be 3'-0" x 7'-0", flush
            face panel design. Exterior hollow metal doors shall be insulated
            and weatherstripped. Hollow metal doors shall be painted.

      B.    Hollow Metal Frames: Hollow metal frames shall be painted.

      C.    Finish Hardware: Door hardware shall be manufactured by Schlage,
            Yale, Corbin or approved equal commercial grade, US26D finish, with
            its function appropriate for its intended use. The keying system
            shall allow doors to be keyed alike within a given area and tied
            into a building master.

2.    OVERHEAD DOORS

      Overhead doors shall be manually operated 8'-0" x 10'-0" and 12'-0" x
      14'-0" insulated steel sectional doors with high lift track and
      weatherstripping as noted on the contract drawings.

3.    WINDOW SYSTEM

      Windows shall be 1" thick thermal panes set in clear anodized aluminum
      frames with a thermal-break design. Areas behind glass spandrel sections
      shall be insulated.

      Entrance door frame finish shall match the style of window framing system.
      Aluminum thresholds shall be provided for exterior doors. Panic devices
      shall be provided at entrance doors where required by code.
<PAGE>

                                                                              11

09000 FINISHES (Per scope indicated in the contact drawings.)

1.    Building Finishes: Building exterior finishes to be painted pre-cast
      concrete and prefinished sheet metal flashings.

2.    Painting: Door frames, metal doors, and miscellaneous metals shall be
      painted unless provided with factory finish. Ferrous metals shall be
      painted, unless provided with a factory-applied finish. Paint materials
      and coverage shall be acceptable for each application and exposure.

10000 SPECIALTIES (Per scope indicated in the contract drawings)

      Fire extinguishers shall be provided as required by local fire codes and
      shall be housed in painted metal cabinets in finished areas, and
      surface-mounted in unfinished areas.

2.    SIGNS

      Code required building and site signs shall be provided for handicapped
      parking signs and traffic control signs.

11000 EQUIPMENT

1.    DOCK BUMPERS

      Dock bumpers shall be provided at each dock door.

15000 MECHANICAL (Per scope indicated on the contract drawings)

1.    PLUMBING

      A piped, interior roof drainage system shall be provided from roof drains
      to connections with the exterior storm drainage system. Above grade,
      horizontal portions of the drain pipes shall be insulated. Provisions
      shall be made for emergency overflow drainage of ponded roof water, in
      accordance with buiding code requirements.

2.    HEATING, VENTILATION, AND AIR CONDITIONING

      Heating only in the warehouse area is included assuming 123,411 sq ft.

      Office areas shall be heated cooled and ventilated to normal office
      conditions in accordance with ASHRAE design standards by means of
      roof-mounted packaged mechanical units which are to be installed as part
      of the tenant improvement and are excluded from this scope of work.

      A wall-mounted electric cabinet unit heater shall provide supplementary
      heat in the electrical room.
<PAGE>

                                                                              12

      Warehouse areas shall be heated by means of gas-fired unit heaters to
      maintain an average temperature of 55(degrees)F based on ASHRAE design
      conditions.

3.    FIRE PROTECTION SPRINKLER SYSTEM

      A complete ESFR wet automatic fire protection system shall be provided for
      the facility in accordance with the requirements of applicable codes, NFPA
      standards and the local fire marshall. The area assumed for this system is
      123,411 sq ft. Smoke evacuation systems are excluded.

16000 ELECTRICAL (Per the scope identified on the contract drawings)

1.    POWER DISTRIBUTION

      A complete electrical system shall be provided in accordance with
      applicable codes from a 120/208V, 3-phase 3600-amp service to panelboards
      with circuit breakers and distribution as required to provide power for
      building systems, lighting, and convenience outlets.

2.    LIGHTING

      A.    Warehouse and dock areas: Fluorescent fixtures will be installed to
            provide an average of 15 food candles.

      B.    Exterior building mounted lights: Wall-mounted high pressure sodium
            or metal halide fixtures will be installed at each loading dock
            door.

      C.    Exit and emergency lighting: As required by code.

3.    COMMUNICATIONS

      A telephone service entrance conduit shall be provided from the telephone
      terminal room to a point 3-feet outside the building for use by the
      telephone company.

4.    FIRE DETECTION

      Monitoring of the fire protection flow switch system only is included in
      the contract price.
<PAGE>
                                                                              13

ALLOWANCES

The following allowances shall be included for the total installed cost (labor,
material, freight, and taxes) of each item indicated unless specified otherwise:

1.    An allowance of $7,500 is included for exterior building signage including
      monument signs.

2.    An allowance of $59,341 is included for landscaping as described.

3.    An allowance of $15,450.00 is included for landscaping as described
      herein.

4.    An allowance of $28,500 is included for SAC/WAC charges as described
      herein.
<PAGE>
                                                                              14

QUALIFICATIONS

The following items are not included in the scope of work proposed herein:

1.    Interim financing costs.

2.    Special permit fees such as park dedication fees, acreage fees and other
      special assessments.

3.    Removal of hazardous materials from site.

4.    Soil correction work.

5.    Winter construction costs (November 1, 1996 through March 31, 1997)

6.    Off-site utility and street work, other than utility connections, curb
      cuts and driveways indicated on the drawings.

7.    Tenant improvements

8.    Draperies or other window treatments.

9.    Special fire protection systems such as in-rack sprinklers, pre-action
      systems, halon or dry sprinkler systems.

10.   Water treatment or conditioning.

11.   Telephone equipment, telephones or communication wiring.

12.   Security systems and fire alarm systems, other than code-required systems.

13.   Central station monitoring of fire or security systems.

14.   Smoke evacuation systems.

15.   Dedicated electrical circuits or other special computer wiring.
<PAGE>
                                                                              15

LIST OF EXHIBITS

The following exhibits, together with this outline specification, form the basis
for this proposal:

Drawings as follows:

1.    As prepared by Genesis Architecture:

            Drawing No        Drawing Title                  Date
            ----------        -------------                  ----

              A-1             Site plan/index               1/14/97
              A-2             Overall floor plan            1/14/97
              A-3             Partial plan - west           1/14/97
              A-4             Partial plan - east           1/14/97
              A-5             Roof plan                     1/14/97
              A-6             Elevations                    1/14/97
              A-7             Elevations                    1/14/97
              A-8             Wall section                  1/14/97
              A-9             Wall section/details          1/14/97
              A-10            Partial plans/elev/details    1/14/97
              A-11            Details                       1/14/97
              A-12            Details                       1/14/97

2.    As prepared by HKS Associates Inc.:

            Drawing No        Drawing Title                  Date
            ----------        -------------                  ----

              C-1             Existing conditions           1/8/97
                                boundary survey
              C-2             Site/layout plan              1/8/97
              C-3             Grading, drainage,            1/8/97
                                erosion
              C-4             Utilities plan                1/8/97
              C-5             General details               1/8/97
              C-6             General details               1/8/97
              L-1             Landscape development         1/8/97
              L-2             Landscape area detail         1/8/97
              L-3             Landscape detail              1/8/97

3.    As prepared by the McSherry Group Inc:

            Drawing No        Drawing Title                  Date
            ----------        -------------                  ----

             S-1              Title sheet                   1/7/97
             S-2              Foundation plan               1/7/97
             S-3              Foundation plan               1/7/97
             S-4              Roof framing plan             1/7/97
             S-5              Roof framing plan             1/7/97
             S-6              Sections and details          1/7/97
             S-7              Sections and details          1/7/97
             S-8              Sections and details          1/7/97
<PAGE>

                                   EXHIBIT C-1

                       (APPROVED PLANS FOR LESSOR'S WORK)

The following plans dated January 8, 1997 prepared by Genesis Architecture:

       Sheet                  Plan
       -----                  ----

       C-1                    Existing Conditions and Boundary Survey
       C-2                    Site/Layout Plan
       C-3                    Grading, Drainage, Erosion Plan
       C-4                    Utilities Plan
       C-5                    General Details
       C-6                    General Details
       C-7                    General Details

       L-1                    Landscape Development Plan
       L-2                    Landscape Area Detail Sheet
       L-3                    Landscape Detail Sheet

       A-1                    Site Plan - Index & Code Review
       A-2                    Overall Floor Plan
       A-3                    Partial Plan - West
       A-4                    Partial Plan - East
       A-5                    Roof Plan
       A-6                    Elevations
       A-7                    Elevations
       A-8                    Wall Section
       A-9                    Wall Section - Details
       A-10                   Partial Plans/Elev. Details
       A-11                   Details
       A-12                   Details

       S-1                    Title Sheet
       S-2                    Foundation Plan
       S-3                    Foundation Plan Cont.
       S-4                    Roof Framing Plan
       S-5                    Roof Framing Plan Cont.
       S-6                    Sections & Details
       S-7                    Sections & Details
       S-8                    Sections & Details
<PAGE>

                                    EXHIBIT D

                            OUTLINE SPECIFICATION FOR
                         THE DESIGN AND CONSTRUCTION OF

                             MSL TENANT IMPROVEMENTS

                          Arden Hills Interstate Center
                                     Phase I
                             Arden Hills, Minnesota

Prepared by:

      Welsh Construction Company
      February 3, 1997
<PAGE>
                                                                               2

                                TABLE OF CONTENTS

01000       GENERAL CONDITIONS                                                 3

03000       CONCRETE                                                           5

05000       METALS                                                             5

06000       CARPENTRY AND MILLWORK                                             6

08000       DOORS AND WINDOWS                                                  6

09000       FINISHES                                                           7

10000       SPECIALTIES                                                        7

11000       EQUIPMENT                                                          8

15000       MECHANICAL                                                         8

16000       ELECTRICAL                                                        12

            ALLOWANCES                                                        15

            QUALIFICATIONS                                                    16

            ALTERNATES AND UNIT PRICES                                        17

            LIST OF EXHIBITS                                                  18
<PAGE>
                                                                               3

01000 GENERAL CONDITIONS

1.    INTENT

      This outline specification and the preliminary drawings outline the
      general scope of work for the design and construction of a 154,264 square
      foot office/warehouse facility in Arden Hills, Minnesota. Contractor
      shall provide all design, supervision, labor, materials, equipment, and
      general requirements necessary for the complete and timely construction of
      the project specified herein. General conditions are based on performing
      this project concurrently with the base building construction.

2.    DESIGN

      A.    Architecture and Civil/Structural Engineering: Contractor shall
            prepare a complete set of working drawings and specifications in
            accordance with these outline documents, applicable building codes
            and zoning requirements, and the requirements of the owner.
            Additions or deletions to the scope of work incorporated into the
            final drawings and specifications at the direction of the owner will
            result in an appropriate adjustment to the contract price.

      B.    Mechanical and Electrical Engineering: The tenant and contractor
            shall produce outline electrical and mechanical specifications
            describing the scope of work and incorporating the items defined in
            Division 15 and 16 herein.

3.    SUPERVISION

      A.    Project Manager: Contractor shall assign a project manager to this
            project who shall be responsible for the complete execution of all
            work. The project manager's responsibilities shall include
            interfacing the project as required with the owner and tenant
            throughout the entire design and construction process, obtaining the
            required building permits, and managing the construction process
            through completion of the project.

      B.    Superintendent: Contractor shall assign a superintendent to this
            project who shall be responsible for the supervision of all field
            construction in progress. The superintendent's responsibilities
            shall include the scheduling and direct supervision of field
            construction forces, interfacing as required with building
            inspection officials, and ensuring compliance of work in place with
            drawings and specifications.

4.    CONSTRUCTION SCHEDULE

      Contractor shall prepare a progress schedule for the project. This
      schedule shall indicate the dates for starting and completion of the
      various stages of construction, and shall be updated on a regular basis to
      reflect the actual progress of the work.

      This proposal is based upon a five-month construction schedule with
      construction commencing on or about February 15, 1997 and completing on or
      about July 30, 1997. No
<PAGE>
                                                                               4

      winter weather costs or overtime costs are included in the contract price.
      A copy of the preliminary construction schedule is attached to this
      proposal.

5.    TEMPORARY CONSTRUCTION

      Contractor shall provide all required temporary construction, temporary
      facilities and temporary utilities required to complete project
      construction including heated weathertight enclosures, temporary roadways
      and parking areas, erosion control structures, material storage areas,
      enclosures for tools and other equipment, a heated and air-conditioned
      field office, temporary utility services for construction use, and
      temporary toilet facilities as required.

6.    CLEAN-UP

      Contractor shall be responsible for construction trash removal services
      and shall at all times keep the building and site free from accumulation
      of debris. Upon completion, the building shall be turned over to owner in
      a "broom clean" condition.

7.    WARRANTY

      Contractor warrants that all materials and equipment shall be new unless
      otherwise specified, and shall be free from defects for a period of one
      year from the date of substantial completion of the work.

8.    INSURANCE

      Contractor shall maintain Worker's Compensation insurance, Comprehensive
      Public Liability insurance, and Builder's Risk insurance, "All Risk" form,
      for this project for the duration of the work.

9.    QUALITY ASSURANCE

      Contractor shall prepare and implement a Quality Assurance project for
      this project. The Quality Assurance program shall include independent
      agency testing and observation of soils, bituminous paving, roofing, steel
      connections, and cast-in-place concrete, as well as inspection of work in
      progress by project designers.

10.   HAZARDOUS MATERIALS REPORTS

      When there is reason to suspect the presence of hazardous materials on the
      site or within an existing structure, or when such materials are
      discovered during construction, the owner will retain an independent
      testing agency to perform investigation and testing and to prepare a
      Hazardous Materials Report. Removal, containment, disposal or other
      procedures required for dealing with such materials will be the
      responsibility of the building owner.
<PAGE>
                                                                               5

11.   SOIL REPORT

      Contractor shall retain an independent testing agency to perform
      subsurface exploration (soil borings) and prepare and engineered
      foundation report (Soil Report) for the proposed project. Building design
      and site preparation shall conform to the requirements of the soil report.

12.   PERMITS AND FEES

      Contractor shall pay for all required building permits necessary for the
      construction of the project.

03000 CONCRETE

1.    CONCRETE SLABS

      Concrete dolly pads shall be provided at the truck docks and shall
      consist of 8" of granular base and 6" of 4000 PSI air entrained concrete,
      reinforced with welded wire or fiber mesh. Open, sawcut control joints
      shall be provided for the control of shrinkage cracking. Nitrogen tank pad
      and a compactor slab have been included as part of the tenant
      improvements.

      Cast-in-place concrete curbs and gutters shall be provided at the
      perimeter of all paved parking and drive areas as part of the base
      building package.

      Slab on grade shall consist of 4" thick 4000 PSI concrete in the proposed
      office areas and 6" thick 4000 PSI concrete in the manufacturing area.
      Slabs shall be reinforced with welded wire or fiber mesh in the proposed
      warehouse areas, cast in place on a 6" (+/- 1") sand cushion. The
      mezzanine slab shall be as designed by the structural engineer and placed
      on metal decking.

      Smooth dowel connections shall be provided at slab on grade construction
      joints. Sawcut control joints shall be provided for the control of
      shrinkage cracking. These sawcut joints are not assumed to be caulked.

      Concrete slabs shall be treated with liquid applied curing compound.
      Curing compounds will be reviewed to ensure compatibility with the
      conductive floor system.

05000 METALS

1.    STRUCTURAL STEEL

      The structural framing system for the building shall consist of steel
      columns, beams or truss girders, bar joists, and white primed metal roof
      deck with column locations as indicated on the drawings.

      A minimum clear height of 24-ft shall be provided under the steel
      structure in warehouse areas. The mezzanine area will be constructed on
      the east end of the building and has been
<PAGE>
                                                                               6

      assumed to be constructed at the same time as the remainder of the
      structural steel. Costs exceeding $6.45/sq ft for the mezzanine structure
      shall be treated as a change in scope.

2.    MISCELLANEOUS METALS

      Stairs, handrail, steel tread dock stairs, access ladders and concrete
      filled pipe bollards shall be provided as indicated on the drawings and in
      the manufacturing area adjacent to the dock enclosures. Steel casings
      shall be provided at overhead door openings.

06000 CARPENTRY AND MILLWORK (Per scope indicated in the contract drawings)

1.    MISCELLANEOUS CARPENTRY

      Roof cants, curbs and other miscellaneous blocking shall be provided as
      required.

2.    FINISH CARPENTRY

      An allowance has been made for the finish carpentry and millwork in the
      entry area and for the installation of shelving and rods in the closets.

08000 DOORS AND WINDOWS (Per scope indicated in the contract drawings)

1.    DOORS

      A.    Interior suite doors shall be 3'-0" x 7'-0" solid core plane-sliced
            red oak veneer doors. Doors accessing the warehouse area shall be
            hollow metal of the appropriate fire rating. Doors shall be stained,
            sealed, or painted.

      B.    Finish hardware: All interior door hardware to be Schlage "S series
            or equal, and exterior door hardware shall be Schlage "D" series or
            equal. Locksets are included at suite access doors only.

      C.    Frames: All wood swing doors shall be set in painted 18 gauge hollow
            metal frames. Exterior door frame to be 16 gauge hollow metal frame.
            Office and conference room door frames will have a 1' x 7' sidelight
            attached to the frame.

2.    OVERHEAD DOORS

      Overhead doors shall be manually operated 8'-0" x 10'-0" insulated steel
      sectional doors with high lift track and weatherstripping as noted on the
      contract drawings.

3.    WINDOW SYSTEM

      Windows shall be 1" thick thermal panes set in clear anodized aluminum
      frames with a thermal-break design. Areas behind glass spandrel sections
      shall be insulated.
<PAGE>
                                                                               7

      Entrance door frame finish shall match the style of window framing system.
      Aluminum thresholds shall be provided for exterior doors. Panic devices
      shall be provided at entrance doors where required by code.

09000 FINISHES (Per scope indicated in the contract drawings.)

1.    Exterior Building Finishes: Building exterior finishes to be painted
      pre-cast concrete and prefinished sheet metal flashings. Door frames,
      metal doors, and miscellaneous metals shall be painted unless provided
      with factory finish. Ferrous metals shall be painted, unless provided with
      a factory-applied finish. Paint materials and coverage shall be acceptable
      for each application and exposure.

2.    Interior Building Finishes:

      a.    Ceilings: Ceilings throughout the office shall be 2' x 4' with
            Armstrong Second Look II acoustical ceiling tile or equivalent
            installed in the building standard exposed grid system at a height
            of 9'-0" above finished concrete floor. The ceiling grid will be
            installed continuous throughout the suite, except as noted on the
            contract drawings. The warehouse area ceilings shall be exposed
            prime white painted structural steel and metal deck.

      b.    Floors: The typical floor finish in office areas shall be carpet. A
            carpet allowance of $10.00/sq yd is included for direct-glue
            installation. Four-inch carpet base is included throughout the
            office. Toilet rooms shall receive ceramic tile floor or equivalent.
            The floor in the entry vestibule shall receive quarry tile. The
            warehouse area floor shall be existing concrete floor. The
            production area shall receive an allowance for Forbo AS2000
            conductive floor tile.

      c.    Walls: Typically, interior partition walls throughout the suite will
            be constructed of 3-5/8" metal studs at 24" on center with on layer,
            each side of 5/8" drywall and shall extend to the underside of the
            acoustical ceiling grid. Exterior walls in finished areas shall be
            furred out, insulated if needed, and receive one layer of 5/8"
            drywall. Partition walls in demising locations and warehouse
            demising and separation walls shall be built to the underside of the
            roof deck above. All demising walls to deck will include insulation
            in the stud cavity. Toilet room walls shall be built to 12-ft AFF
            and will include insulation in the stud cavity. A 4-ft high wainscot
            of ceramic tile on plumbing walls shall be provided extending 2-ft
            past fixtures on all sidewalls. All walls in the office area will be
            taped and sanded smooth and shall receive two finish coats of
            eggshell latex paint. The warehouse walls shall be finished and
            painted white.

10000 SPECIALTIES (Per scope indicated in the contract drawings)

1.    FIRE EXTINGUISHERS

      Fire extinguishers shall be provided as required by local fire codes and
      shall be housed in painted metal cabinets in finished areas, and
      surface-mounted in unfinished areas.
<PAGE>
                                                                               8

2.    TOILET ROOM SIGNAGE

      One restroom sign indicating handicap accessibility shall be included for
      each restroom as required by code.

3.    TOILET ROOM ACCESSORIES

      Toilet accessories include mirror, handicap grab bars as required by code,
      toilet paper holders, soap dispensers, and paper towel dispensers.

11000 EQUIPMENT

1.    DOCK EQUIPMENT

      Dock bumpers shall be provided at each dock door. Five dock levelers, dock
      seals, and draft curtains have been included. The dock leveler capacity
      will be 20,000 lbs.

15000 MECHANICAL

1.    PLUMBING

      A piped, interior roof drainage system shall be provided from roof drains
      to connections with the exterior storm drainage system. Above grade,
      horizontal portions of the drain pipes shall be insulated. Provisions
      shall be made for emergency overflow drainage of ponded roof water, in
      accordance with building code requirements. Domestic hot and cold water
      will be installed to accommodate handicapped toilets, urinals, lavatories,
      sinks, and mop basins.

      The following systems are included:

      a.    Install (1,140) ft of waste piping
      b.    Install (45) floor drains
      c.    Install (510) ft of cold and hot water piping
      d.    Install (625) ft of air mains
      e.    Install (1,375) ft of air branch piping
      f.    Install (93) air drops to 4-ft off finished floor with a valve
      g.    Provide connection to (1) owner's air compressor
      h.    Install (625) ft of vacuum mains
      i.    Install (760) ft of vacuum branch piping
      j.    Install (53) vacuum drops to 4-ft off finished floor
      k.    Install (540) ft of nitrogen mains
      l.    Install (665) ft of nitrogen branch piping
      m.    Install (53) nitrogen drops to 4-ft off finished floor with valve
      n.    Provide connection to (1) tank header
      o.    Install (625) ft of DI water mains
      p.    Install (650) ft of DI water branch lines
      q.    Install (53) DI water drops to 4-ft off finished floor with valve
      r.    Provide connection to (1) DI tank
<PAGE>
                                                                               9

      s.    Provide connection to (1) vacuum pump
      t.    Install (10) handicap tank-type toilets
      u.    Install (16) elongated tank-type toilets
      v.    Install (9) urinals
      w.    Install (19) lavatories
      x.    Install (5) electric water coolers
      y.    Install (2) double-compartment kitchen sinks
      z.    Install (3) mop basins
      aa.   Install (3) 6-gallon electric water heaters
      bb.   Install (1) 40-gallon electric water heater
      cc.   Provide pipe insulation
      dd.   Permits are included
      ee.   Plumbing plans are included

      Service drop locations will be coordinated with the tenant's equipment.
      Areas to be served are noted on the MSL provided layout drawing.

2.    HEATING, VENTILATION, AND AIR CONDITIONING

      The following is included within this scope of work:

      a.    Install (1) 3-ton rooftop heat/cool unit with economizer to serve
            the two conference rooms on the northeast side of the building.
      b.    Install (1) 3-ton rooftop unit with low ambient controls to serve
            the computer room.
      c.    Install (2) 7.5-ton rooftop heat/cool unit with economizer to serve
            the breakroom.
      d.    Install (1) 750 CFM power roof ventilator to serve the breakroom.
      e.    Install (2) 7.5-ton rooftop heat/cool units with economizers to
            serve the west side of the office area, including the conference
            rooms, lobby, and restrooms.
      f.    Install (4) 20-ton rooftop heat/cool units with economizers to serve
            open office area.
      g.    Install (1) 800 CFM power roof ventilator to serve the restrooms and
            janitor closet.
      h.    Install (1) 1.5KW electric entry heater to serve the west entry
            area.
      i.    Install (1) 2KW electric entry heater to serve the main entry area.
      j.    Install (2) restroom exhaust fans to serve restrooms on east side by
            the conference rooms.
      k.    Install (1) 6-ton rooftop heat/cool unit with economizer to serve
            the locker and meeting room areas.
      l.    Install (1) 1,000 CFM power roof ventilator to serve the locker room
            area.
      m.    Install (1) 1.5KW electric entry heater to serve the locker area
            entry.
      n.    Install (3) 20-ton rooftop heat/cool units with economizers to serve
            the main process line area.
      o.    Install (5) 20-ton rooftop heat/cool units with economizers to serve
            the east side of the production area.
      p.    Install (3) 20-ton rooftop heat/cool units with economizers to serve
            the west side of the production area.
      q.    Provide main and branch spiral ductwork from all 20-ton rooftop
            units serving the production and process areas.
      r.    Install (1) 75 MBH unit heaters to serve the shipping and receiving
            areas.
<PAGE>
                                                                              10

      s.    Install (1) 500 CFM power roof ventilator to serve the solder pot
            area. Re-hang existing hood.
      t.    Install (1) 1,600 CFM power roof ventilators to serve the two-wash
            machine. This fan will be epoxy coated. Plastic exhaust ductwork
            from wash machine to PRVs.
      u.    Install (2) 1,600 CFM power roof ventilators to serve the process
            machines. Exhaust ductwork from process machines to PRVs. Note: We
            assume tenant will be moving his equipment and the blast gates that
            are on the equipment now.
      v.    Install (2) 1,200 CFM power roof ventilators to serve the wave
            solder machines. Note: These PRVs are the upblast type.
      w.    Install (1) 700 CFM explosion-proof power roof ventilator to serve
            the chemical storage room. This fan will be epoxy coated. Exhaust
            ductwork to within one foot of the floor, with high and low air
            intakes. One air transfer with a fire damper. Note: The exhaust
            quantities are our best guess without exact CFM ratings from the
            tenant.
      x.    Install (1) 4,000 CFM power roof ventilator to serve the compressor
            room. Install (1) 30 x 24, 2-position motorized intake damper for
            air transfer into the room. This fan will be controlled by a
            thermostat. Note: This damper will be mounted on the high side wall
            with a duct drop to the floor to eliminate noise transfer
      y.    Install (11)38 LB/HR steam humidifier mounted in each of the 20-ton
            rooftop units serving the production and process area.
      x.    Provide vent piping from one test oven to the outside. Note: Assume
            oven has its own fan built-in.
      z.    Install (2) branch supplies and one return air transfer to serve the
            security room. These will have special registers and grills that are
            tamper proof and used in correctional facilities.
      aa.   Provide main and branch supply ductwork in the office area.
      bb.   Provide unit heater vent piping.
      cc.   Provide exhaust fan vent piping.
      dd.   Provide gas piping.
      ee.   Provide steam piping.
      ff.   Provide (4) 250 MBH unit heaters to serve the warehouse area, last
            (3) bays.

      Equipment
      ---------

      1 - GCS16-413 Lennox rooftop unit with economizer
      1 - GCS16-513 Lennox rooftop unit with low ambient controls
      1 - GCS24-713 Lennox rooftop unit with economizer
      4 - GCS24-953 Lennox rooftop unit with economizers
      15 - LGA24OS Lennox rooftop units with economizers
      1 - LF24-75 Lennox unit heater
      4 - LF24-250 Lennox unit heater (for warehouse area)
      11 - VMl6 Dri-Steam humidifiers
      2 - 362 Broan exhaust fans
      1 - 2E437 Dayton electric entry heater
      2 - 2E878 Dayton electric entry heaters
      1 - GB100-4 Greenheck power roof ventilators
      1 - CUBE160-7 Greenheck power roof ventilator - epoxy coated
      2 - CUBE140-4 Greenheck power roof ventilators
<PAGE>
                                                                              11

      2 - CUBE 160-5 Greenheck power roof ventilators
      1 - GB100-4 Greenheck explosion-proof power roof ventilator - epoxy
          coated
      1 - GB180-15 Greenheck power roof ventilator
      1 - GB8O-4 Greenheck power roof ventilator
      2 - GB9O-4 Greenheck power roof ventilators
      3 - LGA24OS Lennox rooftop units with economizers
      1 - GB9O-4 Greenheck power roof ventilator
      1 - GB8O-4 Greenheck power roof ventilator.
      1 - GB8O-4 Greenheck power roof ventilator
      1 - CUBE160-7 Greenheck power roof ventilator
      3 - VM16 Dri Steam humidifiers

      Steam Piping

      The contractor shall install steam piping for humidifiers.

      Vent Piping

      The contractor will install vent piping from exhaust fans and unit
      heaters. Installation of vent piping from the process equipment to the new
      power roof ventilators is included.

      Registers, Grilles, and Diffusers

      Install 2-ft linear supply diffusers above the windows and 2 x 2 lay-in
      supply diffusers for the interior areas in the office areas. Aluminum
      eggcrate for returns is included.

      Ductwork and Dampers

      Install main and branch supply ductwork in the office area, expose spiral
      ductwork in the production and process areas. Provide exhaust ductwork to
      the power roof ventilators.

      Ductwork Insulation

      Supply ductwork in office areas will be insulated with 1-inch duct liner.

      Engineered Drawings

      The contractor will provide engineered drawings for this project as
      required by Minnesota State Statute's 326.02 to 326.15.

      System Start-up

      The new system will be started and tested for proper operation.

      Last Three Bays of Building

a.    Install (3) 20-ton rooftop heat/cool units with economizers.
b.    Install exposed spiral ductwork with duct-mounted supply registers.
<PAGE>
                                                                              12

      Smoking Room

      a.    Install (1) 840 CEM power roof ventilator
      b.    Install exhaust ductwork for smoking room.
      c.    Install air transfer ductwork. Note: This is based on 14 people in
            the room.

      Fuji Production Line Exhaust

      a.    Install (1) 500 CFM power roof ventilator with exhaust ductwork
            connected to exhaust outlets on machine. Note: This CFM quantity is
            our best guess. No actual exhaust quantities have been given.

      Wave Solder Machine Exhaust

      a.    Install (1) 1,200 CFM power roof ventilator with exhaust ductwork
            connected to outlets on machine. Note: This is an up-blast type PRV.

      Humidification for Last Three Bays

      a.    Install (3) 39 Lb/Hr steam humidifiers mounted to serve each of the
            three 20-ton rooftop units serving this space.

3.    FIRE PROTECTION SPRINKLER SYSTEM

      A complete ESFR wet automatic fire protection system shall be provided for
      the manufacturing area in accordance with the requirements of applicable
      codes, NFPA standards and the local fire marshall. Smoke evacuation
      systems are excluded. The office and other non-manufacturing areas will be
      protected by a light hazard system.

16000 ELECTRICAL

1.    POWER DISTRIBUTION

      a.    Wire and install (66) single pole switches
      b.    Wire and install (14) 3-way switches
      c.    Wire and install (140) duplex general-duty receptacles
      d.    Wire and install (2) 4-plex dedicated phone board receptacles
      e.    Wire and install (2) electric water cooler receptacles
      f.    Wire and install (4) vending machine receptacles
      g.    Wire and install (3) coffee maker receptacles
      h.    Wire and install (3) microwave receptacles.
      i.    Wire process line Fuji #1 (conveyors, MPM UP2000, Fuji GL-V, 2- Fuji
            CP VI, Fuji IP III, MTU, Heller 18000S, Wave Solder, and Post Wave
            assembly area)
      j.    Wire process line #2 (conveyors, glue dispenser, MPM 1050,
            Quad QSP-2. Quad IVC, Heller 1700S, Wave Input Module, Solder
            machine, water wash and assembly area)
<PAGE>
                                                                              13

      k.    Wire process line #3 and #4 (conveyors, glue dispenser, MPM 1050,
            Quad QSP-2, Quad IVC, Heller 1700S and task modules)
      l.    Wire line #5 (PTH area)
      m.    Wire and install (14) 20A, 120V cord drops
      n.    Wire (15) 20A, 120V connections in the main component store/kitting
            area
      o.    Install (100) telephone/data openings (no wiring included)
      p.    Wire and install (20) rooftop GFl protected receptacles
      q.    Increase building service to 2500A, 480V, 3-phase
      r.    Furnish and install (320) ft of 100A and 200A, 208V bussduct over
            process lines.

2.    LIGHTING

      a.    Furnish and install (629) 2 x 4 lay-in fixtures with acrylic lens
            and electronic ballasts.
      b.    Furnish and install (300) 400-watt MH high bay fixtures.
      c.    Furnish and install (10) 2 x 4 fixtures with plaster frames
      d.    Furnish and install (24) exit signs with emergency lights
      e.    Furnish and install (2) 300-watt incandescent explosion-proof
            fixtures and switch
      f.    Furnish and install (14) 8-ft 2-lamp strip fixtures
      g.    Furnish and install (20) fluorescent recessed cans in the main lobby

3.    SERVICE

      a.    Wire (20) sets of office furniture.
      b.    Wire (1) elevator
      c.    Wire (2) 6-gallon water heaters.
      d.    Wire (1) large lockerroom water heater
      e.    Wire pre-work area
      f.    Wire (21) cubicles in the area of process lines #2, #3 and #4.
      g.    Wire computer room [(5) 208V, 30A 3-phase connections, (10) 20A,
            120V connections]
      h.    Wire Tool Shop equipment [(5) 208V, 30A single-phase connections,
            (10) 20A, 120V connections)
      i.    Wire receiving area [(10) 20A, 120V connections]
      j.    Wire shipping area [(1) shrink wrap, (1) floor scale, (1) lift
            table, (6) 20A, 120V connections]
      k.    Wire (2) 20A, 120V connections and (1) 30A, 208V single-phase
            connections in the BBN mech. assembly/test area.
      l.    Wire (1) Vista oven, 150A, 480V
      m.    Wire (1) ESS oven, 100A, 480V
      n.    Wire (1) system test area compressor
      o.    Wire (1) thermal cycle chamber
      p.    Wire approximately 150 HP of air compressors
      q.    Wire (1) analytical/calibration labs
      r.    Wire (1) x-ray
      s.    Wire (2) overhead door operators
      t.    Wire (1) trash compactor
      u.    Wire liquid nitrogen task controls
<PAGE>
                                                                              14

      v.    Wire (1) vacuum pump
      w.    Wire (1) Industriever 2000
      x.    Ground VCT flooring
      y.    Wire (2) 3-ton HVAC units
      z.    Wire (1) 6-ton HVAC unit
      aa.   Wire (4) 7.5-ton HVAC units
      bb.   Wire (1) 8.5-ton HVAC unit
      cc.   Wire (15) 20-ton HVAC units
      dd.   Wire (11) humidifiers
      ee.   Wire (5) unit heaters
      ff.   Wire (4) entry heaters
      gg.   Wire (10) PRVs
      hh.   Wire (2) exhaust fans
      ii.   Wire (1) explosion-roof PRY
      jj.   Furnish and install (40) ceiling fans (switched from breakers)
      kk.   Disconnect equipment at old facility
      ll.   Wire (1) fire pump

3.    COMMUNICATIONS

      A telephone service entrance conduit shall be provided from the telephone
      terminal room to a point 3-feet outside the building for use by the
      telephone company.
<PAGE>
                                                                              15

ALLOWANCES

The following allowances shall be included for the total installed cost (labor,
material, freight, and taxes) of each item indicated unless specified otherwise:

1.    An allowance of $20,000 is included for building permits for the tenant
      improvements.

2.    Entryway millwork and reception desk: We have included an allowance of
      $7,500.00 for millwork and drywall soffits in the reception area.

3.    Wallcovering allowance: We have included an allowance of $3,000.00 for the
      installation of wallcovering in the entryway.

4.    Building signage allowance: We have included a $3,000.00 allowance for the
      installation of interior signs.

5.    Conductive flooring allowance: We have included an allowance of
      $409,500.00 for 97,500 sq ft of Farbo AS2000 flooring.

6.    Food service allowance: We have included $15,360.00 for the installation
      of a food service area on the 2nd floor mezzanine level.

7.    Window treatment allowance: We have included a $12,250.00 allowance for
      the installation of window treatments throughout the building.

8     Elevator allowance: An allowance of $40,000.00 has been included for the
      installation of a hydraulic elevator to service the mezzanine level.

9     Security/Fire Alarm systems: An allowance of $15,000.00 has been included
      for the installation of a security/fire alarm system as required to meet
      MSL's requirements.
<PAGE>
                                                                              16

QUALIFICATIONS

The following items are not included in the scope of work proposed herein:

1.    Special fire protection systems such as in-rack sprinklers, pre-action
      systems, halon or dry sprinkler systems.

2.    Water treatment or conditioning other than those noted in this
      specification.

3.    Telephone equipment, telephones or communication wiring.

4.    Central station monitoring of fire or security systems.

5.    Smoke evacuation systems other than smoke vents.

6.    Overtime has not been included in this proposal.

7.    Muzak or interoffice communications systems.

8.    Office furniture, moveable partitions.

9.    Relocation of existing equipment including de-ionized water tanks and
      controls, compressors, laboratory equipment, ovens, fume hoods, process
      equipment, etc.
<PAGE>
                                                                              17

ALTERNATES AND UNIT PRICING

1.    Upgrade carpet to $12.00/sq yd.                                 $11,180.00

2.    Painting of exposed precast walls in the manufacturing area:    $ 6,772.00

3.    Painting of exposed joist to match prefinished decking in the   $18,744.00
      manufacturing area.

4.    Paracube light fixture unit price:                             $32.10/each

5.    Wire additional (4) 20-ton LGA24OS Lennox rooftop units for     $25,200.00
      additional mezzanine area.

6.    Install (4) 20-ton LGA24OS Lennox rooftop units with            $65,100.00
      economizers for the additional mezzanine area.

7.    Eye wash stations.                                              $525.00/ea

8.    Provide (26) power tank toilets in lieu of standard.             $3,425.00
<PAGE>
                                                                              18

LIST OF EXHIBITS

The following exhibits, together with this outline specification, form the basis
for this proposal:

Drawings as follows:

1.    As prepared by Genesis Architecture:

            Drawing No        Drawing Title                     Date
            ----------        -------------                     ----

              A-1             Floor plan                        12/16/96
              A-1             Site plan - index & code review    1/6/97
              A-2             Overall floor plan                 1/6/97
              A-3             Partial plan - west                1/6/97
              A-4             Partial plan - east                1/6/97
              A-5             Roof plan                          1/6/97
              A-6             Elevations                         1/6/97
              A-7             Elevations                         1/6/97
              A-8             Wall section                       1/6/97
              A-9             Wall section - details             1/6/97
              A-10            Partial plans - elev. details      1/6/97
              A-11            Details                            1/6/97
              A-12            Details                            1/6/97

2.    As prepared by MSL:

             Drawing No       Drawing Title
             ----------       -------------

              SK-2            Equipment layout plan (attached)

3.    As prepared by Welsh Construction:

          Schedule dated February 2, 1997.
<PAGE>

                                   EXHIBIT D-l

                           (TENANT IMPROVEMENT PLANS)

Floor Plans dated December 15, 1996 prepared by Genesis Architecture.
<PAGE>

                                    EXHIBIT E

Warranties

Welsh Construction Corp. will furnish a one-year warranty per Paragraph 7 of the
Outline Specification for the Design and Construction of Office/Warehouse, Arden
Hills Interstate Center, Phase I, Arden Hills, Minnesota.

In addition, the following warranties shall be assigned to AmberJack, Ltd.:

-     Roofing: 10 year manufacturer's warranty

-     Insulated window units: 10 year manufacturer's warranty

-     Window Frames: 1 year manufacturer's warranty

-     Precast Panels: 1 year manufacturer's warranty

-     Electrical Equipment: 1 year warranty as to workmanship, and as provided
      by manufacturer as to materials

-     HVAC Equipment: 1 year warranty as to workmanship, and as provided by
      manufacturer as to materials

-     Asphalt Paving: 1 year warranty

-     Landscaping: 1 year warranty
<PAGE>

                                    EXHIBIT F

                            (TENANT'S SIGN CRITERIA)

1)    Monument Sign - Lessor's Cost

      -     As shown on Details Plan A-11 dated 01/04/97

2)    Tenant Sign - Lessee's Cost

      -     36" height x 20" long sign
      -     Limited maximum sign surface
      -     Mounted letters
      -     Tenant graphics locations shown on Extension Elevations Plan A-10
            dated 01/04/97

3)    Address Sign-Lessor's Cost

      -     36" height entrance address number surface mounted center on doors,
            as shown on Exterior Elevation Plan A-6 dated 01/04/97
<PAGE>

                                    EXHIBIT G

                          ATTACHED TO AND MADE PART OF
                           LEASE DATED APRIL 14, 1997
                         BY AND BETWEEN AMBERJACK, LTD.,
                                    AS LESSOR
               AND MANUFACTURER'S SERVICES LIMITED-ROSEVILLE, INC.
                             A MINNESOTA CORPORATION
                                    AS TENANT

The following items are identified as the Operating Expenses necessary to
maintain and operate the Property.

1.    Water and Sewer Services: The City water and sewer service to property, to
      include any irrigation water supply.

2.    Building Maintenance: To include sprinkler monitoring, two inch drain
      test, plumbing repair and maintenance, electrical repair and maintenance,
      window washing, roof repair, seasonal inspections of roof deck and
      flashings, other building repairs (excluding any repairs specified in the
      Lease to be performed by Lessor at its expenses and without reimbursement
      from Tenant), pest control and other utilities not paid directly by
      Tenant.

3.    Repair Maintenance Parking Lots: Sweeping of parking lot, restripe of all
      parking stalls and miscellaneous asphalt parking lot repairs.

4.    Landscape Maintenance: Monthly contract service for all grounds and
      landscaping.

5.    Snow Removal: Snow removal costs for all parking lot and sidewalk areas.

6.    Insurance: Property and casualty insurance and Lessor's public liability
      insurance.

7.    Administrative Fee: Monthly management fees in an amount equal to 1.75% of
      the aggregate amount of Base Rent, Real Estate Taxes and Operating
      Expenses payable to Lessor for such month.

The Tenant reserves the right to contract directly with vendors of its own
choosing for the services to be rendered for the benefit of the Property and
described at numbers 2 through 5 above. Tenant shall do so only upon at least
thirty (30) days prior written notice to Lessor and shall be entitled to
continue such direct contracts with such vendors so long as the Property is
being maintained in accordance with the standards set forth in Section 9(a) of
the Lease.<PAGE>

================================================================================

                                      LEASE

================================================================================

                   INTERNATIONAL BUSINESS MACHINES CORPORATION

                                    LANDLORD

                                       and

              MANUFACTURERS' SERVICES WESTERN U.S. OPERATIONS, INC.

                                     TENANT

================================================================================

Dated: May 5, 1998

<PAGE>

                                TABLE OF CONTENTS

ARTICLE                                                               PAGE
1.  PREMISES .....................................................     1
      Section 1.01. Lease of Premises ............................     1
      Section 1.02. Common Facilities ............................     1

2.  TERM .........................................................     1
      Section 2.01. Initial Term .................................     1
      Section 2.02. Extended Term ................................     1
      Section 2.03. Early Termination ............................     2
      Section 2.04. Term of This Lease ...........................     2

3.  BASIC RENT AND ADDITIONAL RENT ...............................     2
      Section 3.01. Basic Rent ...................................     2
      Section 3.02. Additional Rent ..............................     2
      Section 3.03. Real Estate Taxes ............................     3
      Section 3.04. Personal Property
                    Taxes ........................................     4

4.  SERVICES .....................................................     4
      Section 4.01. Services Provided by Landlord ................     4
      Section 4.02. Landlord's Failure to Provide
                    Services .....................................     8

5.  TENANT'S PARKING SPACES ......................................     8

6.  USE OF LEASED PREMISES .......................................     9

7.  REPAIRS AND MAINTENANCE ......................................     9
      Section 7.01. Landlord .....................................     9
      Section 7.02. Tenant .......................................    10
      Section 7.03. Landlord's Failure to Make
                    Repairs ......................................    10
      Section 7.04. Emergency Repairs ............................    11

8.  FIRE AND OTHER CASUALTY - INSURANCE ..........................    11
      Section 8.01. Damage or Destruction ........................    11
      Section 8.02. Casualty Insurance ...........................    13

9.  CONDEMNATION .................................................    13
      Section 9.01. Taking - Lease Ends ..........................    13
      Section 9.02. Taking - Lease Continues .....................    14
      Section 9.03. Temporary Taking .............................    14
      Section 9.04. Landlord's Award .............................    14
      Section 9.05. Tenant's Award ...............................    14
      Section 9.06. Restoration by Landlord ......................    15
      Section 9.07. Definitions ..................................    15

                                       i
<PAGE>

                                TABLE OF CONTENTS
ARTICLE                                                               PAGE
10. ALTERATIONS AND IMPROVEMENTS .................................    15
      Section 10.01. Tenant's Changes - No Approval ..............    15
      Section 10.02. Tenant's Changes - Landlord's
                     Approval ....................................    15
      Section 10.03. Tenant's Owned Property .....................    16
      Section 10.04. Removal of Tenant's Owned
                     Property ....................................    16

11. LANDLORD'S ACCESS ............................................    17

12. COMPLIANCE WITH LAWS .........................................    17
      Section 12.01. Tenant's Compliance with Laws ...............    17
      Section 12.02. Landlord's Compliance with Laws .............    17

13. SURRENDER OF POSSESSION ......................................    18

14. SIGNS ........................................................    18
      Section 14.01. Tenant's Signs ..............................    18
      Section 14.02. Directory Board .............................    18
      Section 14.03. Compliance with Laws ........................    18

15. SUBORDINATION AND NON-DISTURBANCE ............................    18

16. MECHANICS' LIENS .............................................    19

17. DEFAULT ......................................................    19
      Section 17.01. Default by Tenant ...........................    19
      Section 17.02. Suspension of Tenant Default ................    20
      Section 17.03. Default by Landlord .........................    20

18. HOLDOVER .....................................................    21

19. NOTICES ......................................................    21

20. ASSIGNMENT AND SUBLETTING ....................................    21
      Section 20.01. Assignment or Sublease ......................    21
      Section 20.02. Liability of Tenant .........................    22

21. EQUAL EMPLOYMENT OPPORTUNITY .................................    22

22. QUITE ENJOYMENT ..............................................    23

23. WAIVER .......................................................    23

                                       ii
<PAGE>

                                TABLE OF CONTENTS
ARTICLE                                                               PAGE
24. PARTIAL INVALIDITY ...........................................    23

25. RULES AND REGULATIONS ........................................    24
      Section 25.01. Tenant's Obligation .........................    24
      Section 25.02. Standards Applicable to
                     Landlord ....................................    24
      Section 25.03. Landlord's Enforcement ......................    24
      Section 25.04. Conflict ....................................    24

26. ESTOPPEL CERTIFICATES ........................................    24
      Section 26.01. Tenant's Estoppel Certificate.. .............    24
      Section 26.02. Landlord's Estoppel Certificate. ............    25

27. COUNTERPARTS .................................................    25

28. BROKER .......................................................    25

29. ARBITRATION ..................................................    26
      Section 29.01. Applicability ...............................    26
      Section 29.02. Notice and Demand ...........................    26
      Section 29.03. Selection of Arbitrator .....................    27
      Section 29.04. Scope .......................................    27

30. EXCUSABLE DELAY ..............................................    27

31. MISCELLANEOUS ................................................    28
      Section 31.01. Rules of Interpretation .....................    28
      Section 31.02. No Exclusive Remedies .......................    28
      Section 31.03. Governing Laws ..............................    28
      Section 31.04. Non-Disclosure of Lease .....................    28

32. MEMORANDUM OF LEASE ..........................................    29

33. ENVIRONMENTAL OBLIGATIONS ....................................    29
      Section 33.01. Approved and Prohibited
                     Chemicals ...................................    29
      Section 33.02. Tenant's Indemnity ..........................    30
      Section 33.03. Notification of Spill or
                     Release/Remediation .........................    30
      Section 33.04. Definitions .................................    31

34. LEASED PREMISES "AS IS" ......................................    31

35. REPRESENTATIONS OF LANDLORD ..................................    32

                                       iii
<PAGE>

                                TABLE OF CONTENTS
ARTICLE                                                               PAGE
36. INDEMNITIES ..................................................    33
      Section 36.01 Landlord's Indemnity .........................    33
      Section 36.02 Tenant's Indemnity ...........................    33
      Section 36.03 Survival .....................................    33

37. LABOR HARMONY ................................................    34

38. OTHER AGREEMENTS .............................................    35

39. BINDING AGREEMENT ............................................    35

40. TRANSITION SPACE .............................................    35

41. ENTIRE AGREEMENT .............................................    36

EXHIBITS A-l and A-2  -   DESCRIPTION OF LEASED PREMISES
EXHIBIT B             -   DESCRIPTION OF PROJECT AND BUILDING
                          PARKING AREA

ATTACHMENT A - ELECTRICITY AND COMPRESSED AIR SPECS
ATTACHMENT B - TENANT RULES AND REGULATIONS
ATTACHMENT C - LANDLORD FIT-UP WORK AND METER INSTALLATION

SCHEDULE A -   REIMBURSEMENT
SCHEDULE B -   APPROVED CHEMICALS

                                       iv
<PAGE>

                                      LEASE

      THIS LEASE, made as of May 5, 1998, between INTERNATIONAL BUSINESS
MACHINES CORPORATION, a New York corporation, having its principal office at New
Orchard Road, Armonk, New York 10504, hereinafter called "Landlord," and
MANUFACTURERS' SERVICES WESTERN U.S. OPERATIONS, INC., a California corporation,
having an office at 5600 Mowry School Road, Newark, California 94560 hereinafter
called "Tenant."

                                   ARTICLE ONE

                                    PREMISES

      Section 1.01. LEASE OF PREMISES. Landlord hereby leases to Tenant, and
Tenant hereby leases from Landlord, upon and subject to the covenants,
agreements, provisions and conditions of this Lease, the buildings described on
EXHIBITS A-l and A-2 (the "Leased Premises"), situated within the Landlord's
industrial complex described on the plan marked EXHIBIT B. The complex,
including the Leased Premises, is collectively referred to in this Lease as the
"Project."

      Section 1.02. COMMON FACILITIES. This Lease includes the right of Tenant
to use the Common Facilities in common with other tenants of the Project. The
words "Common Facilities" shall mean all of the facilities in or around the
Project designed and intended for use by the tenants of the Project in common
with Landlord and each other.

                                   ARTICLE TWO

                                      TERM

      Section 2.01. INITIAL TERM. Tenant shall lease the Leased Premises for an
initial Term of three (3) years ("Initial Term") to commence on (Closing Date),
1998 (the "Term Commencement Date"), subject to extension as hereinafter
provided. If the Initial Term commences on a date other than the first day of a
month, it shall expire at the end of the day three (3) years from the last day
of the month in which it commenced.

      Section 2.02. EXTENDED TERM. Tenant shall have the option to extend the
term of this Lease for the Leased Premises for one (1) two (2) year term (the
"Extended Term"). The option shall be exercised by written notice to Landlord
given at least six (6)

                                            1
<PAGE>

months prior to the expiration of the Initial Term. The Extended Term shall be
upon the same covenants, agreements, provisions and conditions that are
contained herein for the Initial Term, except for provisions that are
inapplicable to an Extended Term.

      Section 2.03. EARLY TERMINATION. If for any reason the Outsourcing Base
Agreement entered into between the parties hereto as of the date hereof is
terminated, this Lease and the Term shall also terminate effective on the date
of termination of the Outsourcing Base Agreement.

      Section 2.04. TERM OF THIS LEASE. The word "Term" shall mean the Initial
Term and any Extended Term which may become effective.

                                  ARTICLE THREE

                         BASIC RENT AND ADDITIONAL RENT

      Section 3.01. BASIC RENT.

      (a) Commencing on the Term Commencement Date and subject to the provisions
of this Lease, Tenant shall pay the Basic Rent of One Million Four Hundred Four
Thousand Dollars ($1,404,000.00) payable in equal monthly installments in
advance of One Hundred Seventeen Thousand Dollars ($117,000.00) on the first day
of each calendar month during the Initial Term. For any period of less than one
month, Basic Rent shall be apportioned based on the number of days in that
month. Tenant will pay the Basic Rent and Additional Rent to IBM Real Estate
Services at 3200 Windy Hill Road, Atlanta, Georgia 30339, Attention: Sally
Maxwell, WGllC or to such other person or at such other place as Landlord may
designate in writing.

      (b) During the Extended Term, Tenant shall pay the Basic Rent of One
Million Five Hundred Forty-Four Thousand Four Hundred Dollars ($1,544,400.00)
payable in equal monthly installments in advance of One Hundred Twenty-Eight
Thousand Seven Hundred Dollars ($128,700.00) on the first day of each calendar
month during the Extended Term.

      Section 3.02. ADDITIONAL RENT. In addition to Basic Rent, Tenant shall pay
Additional Rent which shall mean all sums of money payable by Tenant under this
Lease other than Basic Rent.

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      Section 3.03. REAL ESTATE TAXES.

      (a) Landlord shall pay when due all ad valorem taxes, special assessments
and other charges of Governmental Authorities which shall be levied or assessed
or which become liens at any time upon the Leased Premises, including Substitute
Taxes (hereinafter called "Real Estate Taxes"). During the Initial Term, Tenant
shall not be liable for the payment of Real Estate Taxes. During the Extended
Term, Tenant shall be responsible for Tenant's share of Real Estate Taxes
imposed on the Project, which shall mean eleven percent (11%). As part of the
Basic Rent, Tenant shall pay Landlord one-twelfth (1/12) of Tenant's share of
estimated Real Estate Taxes within ten (10) days after receipt of Landlord's
monthly bill for Real Estate Taxes. Such estimated taxes will be the Real Estate
Taxes paid in the last year of the Initial Term. When actual Real Estate Taxes
for the first year of the Extension Term become known, Landlord shall issue a
reconciliation statement within thirty (30) days after it receives the Real
Estate Tax bill issued by the taxing authority. If Tenant has overpaid, Landlord
will credit the overpaid amount against the next Basic Rent payment due
hereunder. If Tenant has underpaid, Tenant shall pay Landlord the underpaid
amount within thirty (30) days after receipt of Landlord's reconciliation
statement and a copy of such Real Estate Tax bill.

      (b) During the Initial Term and any Extended Term, Tenant shall pay any
increased Real Estate Taxes resulting from and to the extent expressly allocable
to: (i) any improvements or alterations made after the date hereof on or in the
Leased Premises by or for Tenant, (ii) the installation of any of Tenant's
Personal Property (defined below), (iii) any use of the Leased Premises by
Tenant, and (iv) any other activity on the Leased Premises by or on behalf of
Tenant.

      (c) The words "Substitute Taxes" shall mean a tax, assessment or charge
imposed by Law which is payable as a substitute for any existing tax, assessment
or charge which is imposed on real or personal property owners as a class or on
the Project or personal property thereon; a supplement to existing taxes,
assessments or charges imposed by Law; or any tax, assessment or charge imposed
by Law, which is related to the Project or personal property thereon, but
expressly excluding any general income, franchises, capital stock, estate or
inheritance taxes, and rent or other receipts received from the rental of the
Leased Premises, unless such income, revenues or/and taxes, to the extent they
relate directly to the lease or ownership of the Project, are determined by a
Governmental Authority to be in lieu of Real Estate Taxes.

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      Section 3.04. PERSONAL PROPERTY TAXES. During the Initial Term, Tenant
shall not be liable for the payment of Tenant's Personal Property Taxes. During
the Extended Term, Tenant shall be responsible for taxes assessed on Tenant's
Personal Property. Within ten (10) days after receipt of Landlord's monthly bill
for taxes assessed on personal property at the Complex, Tenant shall pay
one--twelfth (1/12) of all estimated ad valorem taxes, assessments and other
charges of Governmental Authorities (including Substitute Taxes) which shall be
levied or assessed or which become liens at any time upon fixtures, machinery,
equipment, furniture and other tangible personal property ("Tenant's Personal
Property") located on, or used in connection with the occupancy, operation,
maintenance, repair or management of the Leased Premises during the Extended
Term. Such estimated taxes shall be the taxes paid in the last year of the
Initial Term and estimated payments shall be reconciled against actuals in the
same manner and in the same time frame as Real Estate Taxes.

                                  ARTICLE FOUR

                                    SERVICES

      Section 4.01. SERVICES PROVIDED BY LANDLORD. Landlord shall, subject to
reimbursement as provided in SCHEDULE A hereto, furnish to Tenant the following
services, utilities, supplies and facilities:

      (1) Access to the Leased Premises twenty-four (24) hours a day, seven (7)
days a week in accordance with the provisions of ATTACHMENT B.

      (2) Heat, ventilation and air conditioning to be provided to meet the
comfort levels of 68 degrees F to 78 degrees F. There will be no winter
humidification. Chilled water shall be metered at its entrance to the Leased
Premises and Tenant shall be charged at the rate set forth in SCHEDULE A.

      (3) Hot and cold running domestic water for Tenant's drinking, lavatory
and toilet purposes as currently furnished, to be provided as part of the Basic
Rent.

      (4) Electric power in accordance with the provisions of ATTACHMENT A, use
to be measured by meter and charged at the rate set forth in SCHEDULE A.

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<PAGE>

      (5) Compressed air in accordance with the provisions of ATTACHMENT A, use
to be measured by meter and charged at the rate set forth in SCHEDULE A.

      (6) Security services, as follows: Landlord will provide limited security
services to protect Landlord's assets as part of the Basic Rent. Additional
security services may be provided upon and subject to a separate agreement
between the parties. Day to day building dock security shall be Tenant's
responsibility. Landlord shall provide all lock services with reimbursement in
accordance with SCHEDULE A. Tenant shall not alter any lock or install a new or
additional lock or any bolt on any door of the Leased Premises without prior
written consent of Landlord, such consent not to be unreasonably withheld or
delayed. Tenant shall not duplicate any keys provided by Landlord.

      IT IS AGREED THAT LANDLORD IS NOT AN INSURER AND THAT IT IS NOT THE
INTENTION OF THE PARTIES THAT LANDLORD ASSUME RESPONSIBILITY FOR AND TENANT
HEREBY RELEASES LANDLORD FROM ANY CLAIM OF LOSS OR MISFEASANCE IN THE
PERFORMANCE OF THE SECURITY SUPPORT SERVICES LISTED ABOVE OR FOR ANY LOSS OR
DAMAGES SUSTAINED THROUGH BURGLARY, THEFT, ROBBERY, FIRE OR OTHER CAUSES, OTHER
THAN DUE TO GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF LANDLORD.

      (7) Removal of ice and snow, lawn mowing and general upkeep of the Common
Facilities and Building Parking Area, as necessary and appropriate, to be
provided as part of the Basic Rent.

      (8) Telecommunications, as follows: Physical wiring for telecommunications
infrastructure will be provided by the Landlord in accordance with ATTACHMENT C.
However, this Service is not included in the Basic Rent and will be provided
upon and subject to a separate agreement between the parties.

      (9) Exclusive use of the shipping and receiving dock attached to Building
002 for Tenant's loading, unloading, delivery and pick-up activity at the Leased
Premises, including access thereto twenty-four (24) hours a day, seven (7) days
a week.

      (10) Mail service as follows: Tenant will be provided a distinct mailing
address for the Leased Premises. Landlord will not provide any mail service.

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      (11) Vending machine requirements, to be provided by Landlord's vendor.
Tenant shall reimburse Landlord for any charges incurred by Landlord therefor.

      (12) Emergency control services, when requested by Tenant, to be provided
by Landlord's Project Operations and Security function as follows:

            (i) Landlord will provide emergency response assistance for fire,
            chemical spills, and the like to the extent that Landlord has
            qualified emergency personnel on staff. Tenant is responsible for
            any costs incurred by Landlord for each incident if resulting from
            needs of Tenant's employees, agents, contractors or other invitees.

            (ii) Landlord will assist Tenant in developing an emergency action
            plan for the Leased Premises and Tenant shall communicate this plan
            to its employees. The plan shall address: (a) who shall report an
            emergency; (b) who shall initiate an evacuation in the absence of
            Tenant's site manager; (c) how will emergencies be reported; d) what
            shall Tenant do after calling and; (e) the matters described in the
            section "Safety and Security" of ATTACHMENT B.

      (13)  (iii) The Leased Premises will be inspected by Landlord each month
            to assure compliance with code and insurance company requirements.
            Technicians will test the sprinkler, smoke detection and other
            extinguishing systems as appropriate. The inspections will also
            cover the condition and location of portable fire extinguishers,
            storage of chemicals, operation of fire doors, and any other
            conditions that are potential fire hazards. When deficiencies are
            found to exist within the exterior walls, floor slabs and exterior
            roof of the Leased Premises, corrective action by Landlord will be
            required at its expense. Landlord's technician will contact Tenant
            to make arrangements before entering Tenant's area to perform a
            monthly inspection. Each monthly inspection may not include all of
            the items listed in this paragraph.

            (ii) At least annually, Landlord's property insurer shall tour the
            Leased Premises with Landlord's fire marshal to review Tenant's
            operations and the Leased Premises for compliance with the insurer's
            requirements. Landlord's fire marshal will obtain

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<PAGE>

            prior approval from Tenant before conducting these inspections.

            (iii) Landlord shall inspect and maintain the fire valves and
            hydrants.

            (iv) Tenant agrees that the Project Operations and Security function
            shall control all open flame producing work through a permit process
            which may include permits for welding, soldering, and spark
            producing equipment. Tenant will obtain the permits by calling
            Landlord's assigned fire technician. The technician will permit the
            work upon compliance with the appropriate fire regulations.

            (v) Landlord's security function will contact Tenant in advance to
            conduct annual evacuation drills of the Leased Premises as set forth
            in Tenant's Rules.

            (vi) Confined spaces at the Project are clearly marked with yellow
            and black signs. Under no circumstances shall Tenant or its
            employees or invitees enter one of these spaces unless issued a
            permit by Landlord's safety function.

      (14) Environmental and chemical management as follows:

            (i) Landlord shall provide limited environmental engineering support
            and chemical management support to Tenant. Landlord agrees to
            interact with and submit to federal, state, and local environmental
            regulatory agencies applications, reports and the like on behalf of
            Tenant upon receipt of appropriate and timely information from
            Tenant. Tenant shall sign all documentation and shall remain solely
            accountable for the accuracy of all information furnished to
            Landlord and for compliance with all environmental Laws applicable
            to Tenant's operations.

            (ii) Disposal and treatment of Hazardous Materials and nonhazardous
            chemical wastes generated by Tenant shall be handled, treated,
            stored and disposed of by Tenant in accordance with the Law (defined
            in Article 12).

            (iii) Tenant shall maintain a chemical shipping and receiving dock
            and an appropriate storage area(s), each approved by Landlord, which
            approval shall not be unreasonably withheld or delayed.

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<PAGE>

      Section 4.02. LANDLORD'S FAILURE TO PROVIDE SERVICES.

      (a) If after notice to Landlord of a default in furnishing or paying for
any utilities, services or facilities to be furnished to Tenant hereunder,
Landlord fails or refuses to cure such default within a reasonable time under
the circumstances, specified by Tenant in the notice, Tenant may declare an
event of default and cure such default. Landlord shall reimburse Tenant within
thirty (30) days after Landlord receives Tenant's invoice.

      (b) Except as provided in ARTICLE TWENTY-NINE, the remedies set forth in
this Article shall be in addition to other remedies granted to Tenant elsewhere
in this Lease or at law or in equity, and shall not affect any claim for actual
or constructive eviction or other claim for damages or relief to which Tenant
may be entitled.

      (c) If Landlord disputes any default declared by Tenant pursuant to this
Article, including the reasonableness of time granted to cure the default, the
actual costs incurred to cure or reasonableness of those costs, Landlord may
submit the disputed matter to arbitration in accordance with ARTICLE TWENTY-NINE
within five (5) days after receiving Tenant's notice of the alleged default or
invoice.

                                  ARTICLE FIVE

                             TENANT'S PARKING SPACES

      (a) Landlord shall, as part of the Basic Rent, provide Tenant with Two
hundred fifty (250) nonexclusive, unreserved, parking spaces for Tenant's use
within the Building Parking Area outlined on EXHIBIT B. The Building Parking
Area shall be available for use twenty-four (24) hours a day, every day of the
year during the Term and shall be illuminated when necessary to maintain a safe
environment. Further, Landlord shall keep and maintain the Building Parking Area
in a clean and safe condition, including replacement of light bulbs and
ballasts, at Landlord's sole expense.

      (b) If Tenant, its employees, licensees or guests are not able to use the
Building Parking Area and access ways thereto because of unauthorized use by
others, Landlord shall take whatever steps are necessary to end and prevent
further unauthorized use including, if appropriate, posting signs, distributing
parking stickers and towing away unauthorized vehicles.

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<PAGE>

                                   ARTICLE SIX

                             USE OF LEASED PREMISES

      Tenant shall have the right to use the Leased Premises for office and
manufacturing, packaging, assembly of electronic computing equipment and related
devises, and for related outsourcing services and for no other purposes. Such
uses shall be in accordance with the provision entitled "Use of Facilities" as
set forth in ATTACHMENT B. In no event shall Tenant allow Hazardous Materials
(defined in ARTICLE THIRTY-THREE) to be used, stored or disposed of within the
Project, except as specifically authorized in Section 33(a).

                                  ARTICLE SEVEN

                             REPAIRS AND MAINTENANCE

      Section 7.01. LANDLORD.

      (a) Landlord shall provide labor and material to support required
maintenance and repairs for the Leased Premises base building systems and
supporting equipment. This service is included as part of the Basic Rent.
Repairs to the Leased Premises which are required by reason of acts or omissions
of Tenant, its employees or invitees within the Leased Premises (such as
clogging of or damage to base systems or damage to walls or sprinkler heads by a
fork truck), other than repairs required by reasonable wear and tear, shall be
made by Landlord at Tenant's expense in accordance with the costs and fees set
forth in SCHEDULE A. Minimal maintenance support (emergencies only) will be
provided after first shift hours, Monday through Friday and for eight of
Landlord's annually designated holidays.

      (b) Tenant shall maintain Tenant's tools and equipment, including
peripheral equipment that is controlled by the tool or operator control panel
and which may be considered part of the tool as well as the automated storage
and retrieval machinery and equipment in Building No. 003. Landlord's facilities
maintenance function shall be responsible for the source of the service, up to
the first valve/main disconnecting device on the service branch line extending
from the main service line to Tenant's equipment/tool. Maintenance of such valve
or disconnecting device shall be performed by Landlord, subject to reimbursement
of all such engineering maintenance costs and fees set forth in SCHEDULE A.

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<PAGE>

      (c) Landlord shall maintain all services upstream of the last mechanical
or electrical service disconnecting device, prior to entering Tenant's equipment
or tool. Landlord shall be responsible for actuating the main disconnecting
device to induce power, air, water, or other facilities service to Tenant's
equipment and tools after performing Tenant's tool/service connection acceptance
process. Only Landlord's maintenance personnel will be permitted to perform this
task.

      (d) Landlord will not maintain fume hoods, sinks, gas storage cabinets,
and the like. Landlord shall maintain a roof installed manufacturing exhaust fan
or similar type of equipment. Tenant shall reimburse Landlord for such
engineering maintenance activity in accordance with SCHEDULE A.

      (e) In addition to the foregoing, Landlord shall perform all repairs and
restoration work required by ARTICLE EIGHT, FIRE AND OTHER CASUALTY - INSURANCE
and ARTICLE NINE, CONDEMNATION.

      Section 7.02. TENANT. At its expense, Tenant shall perform all repairs and
replacements to the interior of the Leased Premises which are not specifically
agreed upon in Section 7.01 to be Landlord's obligations; except that,
notwithstanding the foregoing to the contrary, in no event shall Tenant be
responsible for such repairs or replacements if caused by the acts or omissions
of Landlord, its employees or invitees.

      Section 7.03. LANDLORD'S FAILURE TO MAKE REPAIRS.

      (a) If after notice by Tenant, Landlord fails or refuses to perform any
repairs, restoration work, or replacements which it is required to perform under
Section 7.01 or elsewhere in this Lease within a reasonable time specified by
Tenant in its notice, Tenant may declare an event of default and cure such
default. Landlord, shall reimburse Tenant within thirty (30) days after Landlord
receives Tenant's invoice.

      (b) Except as provided in ARTICLE TWENTY-NINE, the remedies set forth in
this Article shall be in addition to other remedies granted to Tenant elsewhere
in this Lease or at law or in equity, and shall not affect any claim for actual
or constructive eviction or other claim for damages or relief to which Tenant
may be entitled.

      (c) If Landlord disputes any default declared by Tenant pursuant to this
Article, including the reasonableness of time granted to cure the default, the
actual costs incurred to cure, or reasonableness of those costs, Landlord may
submit the

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<PAGE>

disputed matter to arbitration in accordance with ARTICLE TWENTY-NINE within
five (5) days after receiving Tenant's notice of the alleged default or invoice.

      Section 7.04. EMERGENCY REPAIRS. If during the Term repairs, restoration
work or replacements become necessary because of an emergency and the provisions
hereof require the Landlord to make these repairs and replacements, Tenant may
perform them if, in Tenant's opinion, they are necessary to preserve safety or
health of the occupants in the Leased Premises, or Tenant's Property, or are
required by the Laws; provided, however, that Tenant shall first make a
reasonable effort to inform Landlord and grant Landlord a reasonable time under
the circumstances to perform before making them. Tenant shall invoice Landlord
for such costs and expenses and, if Landlord fails to pay the sums stated in the
invoice within ten (10) days after receipt thereof from Tenant, or Landlord
fails to dispute the need for such repairs or replacements or amounts spent to
make them and does not submit the matter to arbitration pursuant to Article
Twenty-Nine, Tenant may offset the amount stated in the invoice against the
Basic Rent.

                                  ARTICLE EIGHT

                       FIRE AND OTHER CASUALTY - INSURANCE

      Section 8.01. DAMAGE OR DESTRUCTION.

      (a) If any portion of the Leased Premises is damaged by fire, earthquake,
flood or other casualty, or by any other cause of any kind or nature (the
"Damaged Property") and the Damaged Property can, in the opinion of Landlord's
architect reasonably exercised, be repaired within ninety (90) days from the
date of the damage, Landlord shall proceed immediately to make such repairs as
required by paragraph (c). This Lease shall not terminate, but Tenant shall be
entitled to a pro rata abatement of Basic Rent payable during the period
commencing on the date of the damage and ending on the date the Damaged Property
is repaired as aforesaid and the Leased Premises are delivered to Tenant. The
extent of rent abatement shall be based upon the portion of the Leased Premises
rendered untenantable, unfit or inaccessible for use by Tenant for the purposes
stated in this Lease during such period. When required by this Article, the
architect's opinion shall be delivered to Tenant within ten (10) days from the
date of the damage. The architect's opinion shall be made in good faith after a
thorough investigation of the facts required to make an informed judgment. The
architect shall consider and include as part of his evaluation the period of
time

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<PAGE>

necessary to obtain the required approvals of the mortgagee, insurer and
municipal authorities, to order and obtain materials, and to engage contractors.

      (b) If (1) in the opinion of Landlord's architect reasonably exercised,
the Damaged Property cannot be repaired within ninety (90) days from the date of
the damage, or (2) Landlord commenced and proceeds with due diligence but fails
to complete the repair of the Damaged Property as required by paragraph (c)
within the ninety (90) day period, subject to an extension of time allowed for
an Excusable Delay, or (3) the Term will expire within one (1) year from the
date of the damage and Tenant fails to extend the Term in accordance with any
right granted in Section 2.02 within thirty (30) days from the date of the
damage, or (4) in the opinion of Landlord's architect reasonably exercised, the
Damaged Property exceeds twenty-five percent (25%) of the then replacement cost
of the Leased Premises (excluding foundations and Tenant's Personal Property),
either party may terminate this Lease as follows: for the reason stated in
subparagraphs (1) or (4), by notice to the other within twenty (20) days from
the date on which the architect's opinion is delivered to Tenant; (2) for the
reason stated in subparagraph (2), by such notice within twenty (20) days from
the end of the ninety (90) day period, as it may have been extended by an
Excusable Delay, and (3) for the reason stated in subparagraph (3), by such
notice within thirty (30) days from the date of the damage. Upon termination,
Basic Rent shall be apportioned as of the date of the damage and all prepaid
Basic Rent and Additional Rent shall be repaid].

      (c) If neither party exercises its option to terminate hereunder Landlord
shall, with due diligence, repair the Damaged Property as a complete
architectural unit of substantially the same usefulness, design and construction
existing immediately prior to the damage; provided, that, Tenant shall pay for
all of Tenant's improvements. Tenant shall be entitled to a pro rata abatement
of Basic Rent in the manner and to the extent provided in paragraph (a).

      (d) If by operation of this Article Landlord undertakes in good faith but
fails to complete repairs of the Damaged Property as required by the provisions
of this Article and deliver the Leased Premises to Tenant within one-hundred
twenty (120) days from the date of the damage, for any reason other than a
material and adverse delay caused by Tenant, if Tenant fails to waive the delay,
either party may terminate this Lease by notice to the other within thirty (30)
days from the date of the damage. If either party elects to terminate, this
Lease and the Term shall

                                       12
<PAGE>

end on the date specified in the notice and Basic Rent shall be apportioned as
of the date of the damage and all prepaid Basic Rent shall be repaid.

      (e) The word "repair" shall include rebuilding, replacing, and restoring
the Damaged Property.

      Section 8.02. CASUALTY INSURANCE.

      (a) From and after the date hereof, Landlord shall maintain a policy of
insurance covering the Project against loss, damage, or destruction caused by
boiler explosion, machine breakdown, fire and the perils specified in an "all
risk" or the standard extended coverage endorsement, by vandalism and malicious
mischief, and by sprinkler, gas, water, steam and sewer leakage. The amount of
insurance shall be an amount to be reasonably determined by Landlord, and such
coverage shall remain in force during the Term.

      (b) Landlord and Tenant each hereby waives its respective right of
recovery against the other and each releases the other from any claim arising
out of loss, damage or destruction to the Project (including the Leased
Premises), and contents thereon or therein whether or not such loss, damage or
destruction may by attributable to the fault or negligence of either party or
its respective agents, invitees, contractors or employees. Each casualty
insurance policy shall include a waiver of the insurer's rights of subrogation
against the party hereto who is not an insured under said policy. Each party
shall look solely to the proceeds of its respective casualty insurance policy
(and to its own funds to the extent it is self-insured) to compensate it for any
such loss, damage or destruction.

                                 ARTICLE NINE

                                 CONDEMNATION

      Section 9.01. TAKING - LEASE ENDS. If at any time during the Term the
whole of the Leased Premises shall be taken for any public or quasi-public use,
under any statute or by right of eminent domain, this Lease shall terminate on
the date of such taking except as provided in Section 9.03. If less than all of
the Leased Premises shall be so taken and in Tenant's reasonable opinion the
remaining part is insufficient for the conduct of Tenant's business Tenant may,
by notice to Landlord within sixty (60) days after the date Tenant is notified
of such taking, terminate this Lease. If Tenant exercises its option, this Lease
and the Term shall end on the date specified in Tenant's notice

                                       13
<PAGE>

and the Basic Rent shall be apportioned and paid to the date specified in
Tenant's notice.

      Section 9.02. TAKING - LEASE CONTINUES. If less than all of the Leased
Premises shall be taken and, in Tenant's reasonable opinion communicated by
notice to Landlord within sixty (60) days after Tenant is notified of such
taking, Tenant is able to gain access to and continue the conduct of its
business in the part not taken, this Lease shall remain unaffected, except that
Tenant shall be entitled to a pro rata abatement of Basic Rent based upon the
nature of the space taken (office, manufacturing, test, assembly, storage,
parking area) and upon the proportion which the area of the Leased Premises or
Building Parking Area, as case may be, so taken bears to the area of the Leased
Premises or Building Parking Area, as case may be, immediately prior to such
taking.

      Section 9.03. TEMPORARY TAKING. If the use and occupancy of the whole or
any part of the Leased Premises is temporarily taken for a public or
quasi-public use for a period less than the balance of the Term, at Tenant's
option to be exercised in writing and delivered to Landlord not later than sixty
(60) days after the date Tenant is notified of such taking, this Lease and the
Term shall terminate on the date specified in Tenant's notice or shall continue
in full force and effect. If this Lease remains in effect Tenant shall be
entitled to a pro rata abatement of Basic Rent and Additional Rent in the manner
and to the extent provided in Section 9.02.

      Section 9.04. LANDLORD'S AWARD. Landlord shall be entitled to receive the
entire award or awards in any condemnation proceeding without deduction
therefrom for any estate vested in Tenant and Tenant shall receive no part of
such award or awards from Landlord or in the proceedings except as otherwise
expressly provided in this Article. Subject to the foregoing, Tenant hereby
assigns to Landlord any and all of Tenant's right, title and interest in and to
such award or awards or any part thereof.

      Section 9.05. TENANT'S AWARD. If there is a taking hereunder, Tenant shall
be entitled to receive out of the award or, if allowed by the Laws, to appear,
claim, prove and receive in the condemnation proceeding (1) the unamortized
value over the Term of the Tenant's improvements, alterations, replacements and
other similar changes to the Leased Premises, provided the same shall have been
paid for by Tenant but regardless of whether the same might be considered by the
Laws or otherwise as a part of the Building or shall be or become Landlord's
Property under the provisions of this Lease; (2) the value of Tenant's Personal

                                       14
<PAGE>

Property (defined in ARTICLE TEN) that is damaged, destroyed or taken hereunder;
and (3) special awards or allowances paid to tenants when their rental space is
taken by eminent domain.

      Section 9.06. RESTORATION BY LANDLORD. If there is a taking hereunder and
this Lease is continued Landlord shall, at its expense, proceed with reasonable
diligence to repair, replace and restore the Leased Premises physically altered
by the taking as a complete architectural unit of substantially the same
proportionate usefulness, design and construction existing immediately prior to
the date of taking.

      Section 9.07. DEFINITIONS. Taking by condemnation or eminent domain
hereunder shall include the exercise of any similar governmental power and any
sale, transfer or other disposition of the Leased Premises or land in lieu or
under threat of condemnation. The word "Leased Premises," as used in this
Article only, shall mean any part of the Leased Premises, Building Parking Area
and access ways thereto.

                                   ARTICLE TEN

                          ALTERATIONS AND IMPROVEMENTS

      Section 10.01. TENANT'S CHANGES - NO APPROVAL. Tenant may place and
replace Tenant's Personal Property (defined in Section 3.04) in the Leased
Premises as it may desire at its own expense without Landlord's consent;
provided that, with respect to tools and equipment, installation and removal is
coordinated with Landlord as to allocation of the responsibilities described in
Section 7.01 above.

      Section 10.02. TENANT'S CHANGES - LANDLORD'S APPROVAL.

      (a) Tenant may make alterations, improvements, replacements and other
changes to the Leased Premises, including the Leased Premises Service Systems,
Building Service Systems and the Structure if Landlord consents thereto, which
consent shall not be unreasonably withheld or delayed and provided Tenant
complies with subsection 10.02(b).

      (b) Landlord has the right, but not the obligation, to contract for all
engineering and construction services requested by Tenant to be performed within
the Leased Premises, and, if Landlord elects such option Tenant shall reimburse
Landlord therefor in accordance with the costs and fees set forth in SCHEDULE A.
All work shall be designed and constructed in accordance with the latest edition
of Landlord's general,

                                       15
<PAGE>

mechanical and electrical specifications ("Landlord's Specifications") a copy of
which Tenant acknowledges it has received. Tenant shall approve a design
estimate and a preliminary cost estimate prior to initiation of design by or on
behalf of Landlord. Upon completion of the design, Tenant shall approve the
construction bid prior to start of construction by or on behalf of Landlord.
Tenant shall be responsible for all design and construction costs including
those incurred for canceled projects.

      (c) The words "Leased Premises Service Systems" shall mean the electrical,
HVAC, mechanical, plumbing, safety and health and telecommunication
(voice/data/signal) systems that directly service the Leased Premises from a
localized point of distribution into the Leased Premises. Such systems are
dedicated to the Leased Premises at their available capacities and do not
service any buildings other than the Leased Premises.

      (d) The words "Building Service Systems" shall mean the electrical, HVAC,
mechanical, plumbing, safety and health and telecommunication
(voice/data/signal) systems that service the Leased Premises and other buildings
in the Project. Such systems provide the main source of supply and distribution
to the Leased Premises.

      (e) The word "Structure" shall mean bearing walls, roof, exterior walls,
support beams, foundation, window frames, floor slabs and support columns of the
Leased Premises.

      Section 10.03. TENANT'S OWNED PROPERTY. All of Tenant's Personal Property
and all non-structural alterations, improvements, replacements and changes made
prior to or during the Term by or on behalf of Tenant (collectively, "Tenant's
Owned Property") shall be owned by and remain the property of Tenant.

      Section 10.04. REMOVAL OF TENANT'S OWNED PROPERTY. Tenant may remove all
or any of Tenant's Owned Property at any time during the Term or, at its option,
Tenant may abandon the same, in whole or in part, to Landlord at the expiration
or earlier termination of the Term by vacating the Leased Premises without
removing the same. If Tenant removes such things or any of them, Tenant shall
not be required to remove pipes, wires and the like from the walls, ceilings or
floors, provided Tenant properly cuts, disconnects and caps such pipes and wires
and seals them off as required by Laws.

                                       16
<PAGE>

                                 ARTICLE ELEVEN

                                LANDLORD'S ACCESS

      (a) Landlord shall have the right (1) at all reasonable times during
Tenant's business hours to inspect the Leased Premises and to show the same to
prospective mortgagees and purchasers; (2) during the last six (6) months of the
Term, to show the same to prospective tenants and (3) at all times to make
repairs or replacements as required by this Lease or as may be necessary;
provided, however, that Landlord shall use all reasonable efforts not to disturb
Tenant's use and occupancy of the Leased Premises and, except when there is an
emergency, Landlord notifies a representative of Tenant, located at the Leased
Premises, at least five (5) business day prior to the date of the requested
access.

      (b) Landlord shall have the right to enter the Leased Premises after
Tenant's business hours to perform its service obligations hereunder and at all
times to enter in emergencies.

      (c) Tenant may designate one or more areas in the Leased Premises as
secure areas, and Landlord shall have no right of access thereto without being
accompanied by Tenant's designated representative except in the case of
emergencies. However, until Landlord is allowed access, any inability of
Landlord to perform an obligation on its part to be performed hereunder because
Landlord is denied such access, shall not constitute a default of Landlord in
the performance of such obligation.

                                 ARTICLE TWELVE

                              COMPLIANCE WITH LAWS

      Section 12.01. TENANT'S COMPLIANCE WITH LAWS. Tenant shall comply with all
federal, state and local statutes, rules, ordinances, orders, codes and
regulations, and legal requirements and standards issued thereunder (the "Laws")
which are applicable to Tenant's use and manner of use of the Leased Premises.
Nothing herein shall be deemed to impose any obligation upon Tenant for any
elements of the Structure, Leased Premises Service Systems or Building Service
Systems.

      Section 12.02. LANDLORD'S COMPLIANCE WITH LAWS. Except as specifically
provided in Section 12.01, Landlord shall comply with all Laws which (1) affect
the Project or (2) relate to the performance by Landlord of any duties or
obligations to be performed by Landlord under this Lease.

                                       17
<PAGE>

                                ARTICLE THIRTEEN

                             SURRENDER OF POSSESSION

      Subject to Section 7.02 above, at the expiration or earlier termination of
the Term, Tenant will peaceably yield up the Leased Premises to Landlord in its
present "as is" condition, reasonable wear and tear and damage by the elements
or Landlord excepted.

                                ARTICLE FOURTEEN

                                      SIGNS

      Section 14.01. TENANT'S SIGNS. Tenant and an Affiliated Person of Tenant
may place its signs in and on the Leased Premises at its expense.

      Section 14.02. DIRECTORY BOARD. Landlord, at Tenant's expense, may place a
sign in front of the Leased Premises which is approved by Tenant. Landlord shall
install and pay for directional signs from the Project's entrance to the
Building.

      Section 14.03. COMPLIANCE WITH LAWS. All signs installed by Landlord and
Tenant shall comply with applicable Laws and shall be installed in good
workmanlike manner.

                                 ARTICLE FIFTEEN

                        SUBORDINATION AND NON-DISTURBANCE

      This Lease shall be subordinate and subject to all ground and underlying
leases and to any mortgages thereon and to any mortgages covering the fee of the
Project, and to all renewals, modifications or replacements thereof; provided,
however, that with respect to any future ground lease, underlying lease and/or
mortgage, on or before the effective date thereof, Landlord shall obtain from
its ground lessor, underlying lessor and/or mortgagee, as the case may be, and
file on the public record a written agreement with Tenant, binding on their
respective legal representatives, successors and assigns, which provides, among
other provisions, that so long as this Lease shall be in full force and effect
(a) Tenant shall not be joined as a defendant in any proceeding which may be
instituted to terminate or enforce the ground or underlying lease or to
foreclose or enforce the mortgage and (b) Tenant's possession and use of the
Leased Premises in accordance with the provisions of this Lease shall

                                       18
<PAGE>

not be affected or disturbed by reason of the subordination to or any
modification of or default under the ground or underlying lease or mortgage. If
the ground or underlying lessor and/or mortgagee or any successor in interest
shall succeed to the rights of Landlord under this Lease, whether through
possession, surrender, assignment, subletting, judicial or foreclosure action,
or delivery of a deed or otherwise, Tenant will attorn to and recognize such
successor-landlord as Tenant's landlord provided the successor-landlord accepts
such attornment and recognizes Tenant's rights of possession and use of the
Leased Premises in accordance with the provisions of this Lease.

                                 ARTICLE SIXTEEN

                                MECHANICS' LIENS

      Within thirty (30) days after notice to Tenant that a mechanics' or other
similar lien has been filed against the Project, Tenant shall discharge by
payment, bond or otherwise those liens if for work, labor, services or materials
claimed to have been performed at or furnished to the Leased Premises for or on
behalf of Tenant, excepting liens which have been filed by a contractor,
supplier, materialman or laborer retained by Landlord.

                                ARTICLE SEVENTEEN

                                     DEFAULT

      Section 17.01. DEFAULT BY TENANT. If Tenant shall default in the payment
of Basic Rent and the default shall continue for five (5) days after notice
thereof from Landlord, or if Tenant shall default in the performance or
observance of any of its other covenants or obligations set forth in this Lease,
and if the default shall continue for thirty (30) days after notice thereof from
Landlord specifying in what manner Tenant has defaulted (except that if the
default cannot be cured within said thirty (30) day period, this period shall be
extended for a reasonable additional time, provided that Tenant commences to
cure the default within the thirty (30) day period and proceeds diligently
thereafter to effect such cure) Landlord may (1) cure the default and any costs
and expenses incurred by Landlord therefor shall be deemed Additional Rent or
(2) lawfully enter the Leased Premises and repossess the same as the former
estate of Landlord and expel Tenant and those claiming under Tenant without
being deemed guilty of any manner of trespass and without prejudice to any other
remedies which Landlord may have for arrears of Basic Rent or Additional Rent
preceding breach of

                                       19

<PAGE>

covenant. Upon entry and repossession as aforesaid, this Lease shall terminate,
at the sole option of Landlord, by notifying Tenant that the Lease has been
terminated.

      Section 17.02. SUSPENSION OF TENANT DEFAULT. Subject to Section 17.03
below, if Tenant shall dispute any sum claimed by Landlord to be due and payable
hereunder and Tenant shall give Landlord written notice specifying in reasonable
detail the basis for its dispute, Tenant may deposit the amount in dispute with
an independent escrow agent selected by the parties hereto, to be held by the
agent pending resolution of the dispute by arbitration or otherwise. Tenant
shall not be deemed to be in default hereunder by reason of such deposit until
the dispute is resolved in favor of Landlord and Tenant fails to cause the agent
to pay the amount determined to be payable to Landlord within ten (10) days
after Tenant is notified of the determination. Tenant and Landlord shall
negotiate in good faith to resolve the dispute by agreement, failing which
either may proceed to arbitration in accordance with ARTICLE TWENTY-NINE.

      Section 17.03. DEFAULT BY LANDLORD. If Landlord defaults in the
performance or observance of any of its covenants or obligations set forth in
this Lease, Tenant shall give Landlord notice specifying in what manner Landlord
has defaulted and if the default shall not be cured by Landlord within the
period of time provided for elsewhere in this Lease, and otherwise within thirty
(30) days after the delivery of such notice (except that if the default cannot
be cured within said thirty (30) day period, this period shall be extended for a
reasonable additional time, provided that Landlord commences to cure the default
within the thirty (30) day period and proceeds diligently thereafter to effect
such cure) Tenant may declare an event of default. If Tenant declares an event
of default and Landlord fails to exercise its rights to arbitrate the dispute
pursuant to ARTICLE TWENTY-NINE, Tenant may deposit such amount estimated by
Tenant to cure the default with an escrow agent in the manner agreed upon in
Section 17.02 above, to be held in escrow so long as Landlord remains in
default. Or, Tenant may cure the default and invoice Landlord for costs and
expenses (including reasonable attorneys' fees and court costs) incurred by
Tenant therefor. If Landlord does not reimburse Tenant within thirty (30) days
after it receives Tenant's invoice, and Landlord does not arbitrate the dispute
pursuant to ARTICLE TWENTY-NINE, Tenant may exercise its rights under law and in
equity to recover such sums.

                                       20
<PAGE>

                                ARTICLE EIGHTEEN

                                    HOLDOVER

      If Tenant remains in the Leased Premises beyond the expiration or earlier
termination of the Term, such holding over in itself shall not constitute a
renewal or extension of this Lease but, in such event a tenancy from month to
month shall arise at one-twelfth (1/12) of one hundred fifty percent (150%) of
the then Basic Rent. The provisions of this Article do not waive Landlord's
rights of re-entry or any other right hereunder.

                                ARTICLE NINETEEN

                                     NOTICES

       Any notice, request or demand under this Lease shall be in writing, and
shall be considered properly delivered when addressed as hereinafter provided,
and (a) served personally, (b) registered or certified (return receipt
requested) and deposited in a United States general or branch post office, or
(c) sent by a private express mail carrier. Any notice, request or demand by
Tenant to Landlord shall be addressed to International Business Machines
Corporation, 8501 IBM Drive, Charlotte, North Carolina 28262, Attention: Jimmy
Kovac, Building 201, until otherwise directed in writing by Landlord and, if
requested in writing by Landlord, simultaneously served on or sent to Landlord's
first mortgagee at the address specified in such request. Any notice, request or
demand by Landlord to Tenant shall be addressed to Manufacturers' Services
Western U.S. Operations, Inc., c/o Herbert L. Watkins, 7345 IBM Drive,
Charlotte, North Carolina 28262, with copies addressed simultaneously to
Manufacturers' Services Limited, 200 Baker Avenue, Concord, Massachusetts 01742
Attention: General Counsel, until otherwise directed in writing by Tenant.
Rejection or other refusal to accept a notice, request or demand, or the
inability to deliver the same because of a changed address of which no notice
was given, shall be deemed to be receipt of the notice, request or demand sent.

                                 ARTICLE TWENTY

                            ASSIGNMENT AND SUBLETTING

      Section 20.01. ASSIGNMENT OR SUBLEASE.

      (a) Without the consent of Landlord, Tenant may assign this Lease or
sublet all or any part of the Leased Premises at any

                                       21
<PAGE>

time during the Term to (a) an Affiliated Person of Tenant, (b) Tenant's
partner, (c) a successor entity created by merger, reorganization,
recapitalization, or acquisition, or (d) any Person purchasing the business
which is carried on within the Leased Premises. For purposes of this Section,
the words "Affiliated Person of Tenant" mean a Person, directly or indirectly,
through one or more intermediaries, controlling Tenant, controlled by Tenant or
under common control with Tenant, including Manufacturers' Services Limited, the
Delaware corporation, and corporations wholly owned or controlled by it.

      (b) Except as authorized in paragraph (a) above, without the prior written
consent of Landlord in each case, which Landlord shall not unreasonably withhold
or delay, Tenant shall not, whether voluntarily or by operation of Law, assign,
encumber or otherwise transfer this Lease or any interest herein, or sublet the
Leased Premises or any part thereof, or permit the Leased Premises to be
occupied by anyone other than Tenant or Tenant's employees. For purposes of this
Lease, an assignment shall include any transfer of any interest in this Lease or
the Leased Premises by Tenant pursuant to a merger, division, consolidation or
liquidation, or pursuant to change in ownership of Tenant involving a transfer
of voting control in Tenant (whether by transfer of partnership interests,
corporate stock or otherwise)

      Section 20.02. LIABILITY OF TENANT. If Tenant assigns or sublets
hereunder, Tenant shall notify Landlord thereof and Tenant shall remain
responsible for the faithful performance and observance of all of its covenants
and obligations set forth in this Lease unless the net worth of the assignee or
subtenant exceeds Twenty-Five Million and 00/100 Dollars ($25,000,000.00), in
which case Landlord shall release Tenant from any obligations under this Lease
from and after the date of assignment.

                               ARTICLE TWENTY-ONE

                          EQUAL EMPLOYMENT OPPORTUNITY

      There are incorporated in this Lease the provisions of Executive Order
11246 (as amended) of the President of the United States on Equal Employment
Opportunities and the rules and regulations issued pursuant thereto with which
Landlord represents that it will comply unless exempted.

                                       22
<PAGE>

                               ARTICLE TWENTY-TWO

                                 QUIET ENJOYMENT

      Provided Tenant performs the covenants and obligations in this Lease on
Tenant's part to be performed, Landlord covenants and agrees to take all
necessary steps to secure and to maintain for the benefit of Tenant the quiet
and peaceful possession of the Leased Premises and Building Parking Area for the
Term, without hindrance, claim or molestation by Landlord or any other Person.

                              ARTICLE TWENTY-THREE

                                     WAIVER

      Failure by either party to complain of any action, inaction or default of
the other party shall not constitute a waiver of the aggrieved party's rights
hereunder. Waiver by either party of any right to claim a default of the other
party shall not constitute a waiver of any right to claim a subsequent default
of the same obligation or to claim any other default, past, present or future.
To the extent enforceable under applicable Laws, Landlord and Tenant hereby
waive trial by jury in any action, proceeding or counterclaim brought by either
against the other concerning any matters whatsoever arising out of or in any way
connected with this Lease or the relationship of the parties hereunder.

                               ARTICLE TWENTY-FOUR

                               PARTIAL INVALIDITY

      If any covenant, condition or provision of this Lease, or the application
thereof to any Person or circumstance, shall be held to be invalid or
unenforceable, then in each such event the remainder of this Lease or the
application of such covenant, condition or provision to any other Person or any
other circumstance (other than those as to which it shall be invalid or
unenforceable) shall not be thereby affected, and each covenant, condition and
provision hereof shall remain valid and enforceable to the fullest extent
permitted by the Laws.

                                       23
<PAGE>

                               ARTICLE TWENTY-FIVE

                              RULES AND REGULATIONS

      Section 25.01. TENANT'S OBLIGATION. Tenant shall abide by and observe
rules and regulations which are set forth on ATTACHMENT B as well as any others
which are necessary for the safety, security, care and appearance of the Project
or the preservation of good order therein, or for the operation and maintenance
of the Project or equipment therein (the "Rules and Regulations"); provided the
same are in conformity with common practice and usage in a quality industrial
complex in Charlotte, North Carolina and surrounding environs, are not
inconsistent with the provisions of this Lease and apply to all tenants and
occupants of the Project, and provided further that a copy thereof is received
by Tenant.

      Section 25.02. STANDARDS APPLICABLE TO LANDLORD. Landlord shall (a) not
discriminate against Tenant in enforcing the Rules and Regulations; (b) not
unreasonably withhold or delay its consent to any approval required by Tenant
under the Rules and Regulations, and (c) exercise its judgment in good faith in
any instance when the exercise of Landlord's judgment under the Rules and
Regulations is required.

      Section 25.03. LANDLORD'S ENFORCEMENT. Landlord shall use its reasonable
efforts to obtain compliance of the Rules and Regulations by all tenants and
other occupants within the Project limits, but Landlord may permit reasonable
waivers so long as such waivers do not unreasonably interfere with or materially
and adversely affect Tenant in the conduct of its business in the Leased
Premises or violate any rights granted to Tenant under this Lease.

      Section 25.04. CONFLICT. If there is a conflict between or ambiguity
created by the provisions of this Lease and the Rules and Regulations published
pursuant to this Article, the provisions of this Lease shall control and be
binding on the parties hereto.

                               ARTICLE TWENTY-SIX

                              ESTOPPEL CERTIFICATES

       Section 26.01. TENANT'S ESTOPPEL CERTIFICATE. Tenant agrees, at any time
and from time to time, upon not less than ten (10) days prior notice from
Landlord, to execute, acknowledge and deliver to Landlord or any Person
designated by Landlord a

                                       24
<PAGE>

statement in writing (1) certifying that this Lease is unmodified and in full
force and effect (or if there have been modifications, that this Lease is in
full force and effect as modified and stating the modifications); (2) whether or
not the Term has commenced and if it has commenced, stating the dates to which
the Basic Rent and Additional Rent have been paid by Tenant; (3) stating, to the
best of Tenant's knowledge, whether or not Landlord is in default in the
performance of any covenant, agreement or condition contained in this Lease, and
if Tenant has knowledge of such a default, specifying each such default; and (4)
any other reasonable statements which are customarily required by an owner of or
a lender secured by real property.

       Section 26.02. LANDLORD'S ESTOPPEL CERTIFICATE. Prior to commencement of
and during the Term Landlord shall, within ten (10) days after receipt of
Tenant's request, deliver an estoppel certificate to Tenant or any Person
designated by Tenant relative to the status of this Lease and/or any ground
lease, underlying lease and/or mortgage encumbering the Project, in a form
reasonably satisfactory to Tenant.

                              ARTICLE TWENTY-SEVEN

                                 COUNTERPARTS

       When several counterparts of this Lease have been executed, each shall be
considered an original for all purposes; provided, however, that all
counterparts shall, together, constitute one and the same instrument.

                              ARTICLE TWENTY-EIGHT

                                     BROKER

       The parties warrant and represent to each other that no Person has
negotiated or brought about this transaction. Tenant shall defend, indemnify and
save harmless Landlord from and against any claim which may be asserted against
Landlord by any Person if (a) the claim is made in connection with this
transaction and (b) Tenant retained the claiming Person. Tenant shall reimburse
Landlord for reasonable expenses, losses, costs and damages (including
reasonable attorneys' fees and court costs if Tenant fails or refuses to defend
as herein required) incurred by Landlord in connection with such claims.
Landlord shall defend, indemnify and save harmless Tenant from and against any
claim which may be asserted against Tenant by any Person if the claim (a) is
made in connection with this transaction and (b) arises out of conversations or
dealings between Landlord and any

                                       25
<PAGE>

claiming Person other than a Person retained by Tenant for this transaction.
Landlord shall reimburse Tenant for reasonable expenses, losses, costs and
damages (including reasonable attorneys' fees and court costs if Landlord fails
or refuses to defend as herein required) incurred by Tenant in connection with
such claims. This Article shall survive the expiration or earlier termination of
this Lease.

                               ARTICLE TWENTY-NINE

                                  ARBITRATION

       Section 29.01. APPLICABILITY.

       (a) If arbitration is agreed upon hereunder as a dispute resolution
procedure, the arbitration shall be conducted as provided in this Article. All
proceedings shall be conducted according to the Commercial Arbitration Rules of
the American Arbitration Association, except as hereinafter provided. No action
at law or in equity in connection with any such dispute shall be brought until
arbitration hereunder shall have been waived, either expressly or pursuant to
this Article. The judgement upon the award rendered in any arbitration hereunder
shall be final and binding on both parties hereto and may be entered in any
court having jurisdiction thereof.

       (b) During an arbitration proceeding pursuant to this Article, the
parties shall continue to perform and discharge all of their respective
obligations under this Lease, except as otherwise provided in this Lease.

       Section 29.02. NOTICE AND DEMAND. All disputes that may be arbitrated in
accordance with this Article shall be raised by notice to the other party, which
notice shall state with particularity the nature of the dispute and the demand
for relief, making specific reference by article number and title of the
provisions of this Lease alleged to have given rise to the dispute. The notice
shall also refer to this Article and shall state whether or not the party giving
the notice demands arbitration under this Article. If no such demand is
contained in the notice, the other party against whom relief is sought shall
have the right to demand arbitration under this Article within five (5) business
days after such notice is received. Unless one of the parties demands
arbitration, the provisions of this Article shall be deemed to have been waived
with respect to the dispute in question.

                                       26
<PAGE>

       Section 29.03. SELECTION OF ARBITRATOR. Tenant and Landlord shall
mutually and promptly select one person who has demonstrated at least fifteen
(15) years' experience in commercial real estate matters and, in particular, the
subject matter of the dispute, to act as arbitrator hereunder. If a selection is
not made within thirty (30) days after a demand for arbitration is made, upon
the request of either party the arbitrator shall be appointed by the American
Arbitration Association. The arbitration proceedings shall take place at a
mutually acceptable location in White Plains, New York or New York City.

       Section 29.04. SCOPE. When resolving any dispute, the arbitrator shall
apply the pertinent provisions of this Lease without departure therefrom in any
respect. The arbitrator shall not have the power to change any of the provisions
of this Lease, but this Section shall not prevent in any appropriate case the
interpretation, construction and determination by the arbitrator of the
applicable provisions of this Lease to the extent necessary in applying the same
to the matters to be determined by arbitration.

                                 ARTICLE THIRTY

                                 EXCUSABLE DELAY

       Whenever a party hereto is required by the provisions of this Lease to
perform an obligation and such party is prevented beyond its reasonable control
from doing so by reason of an Excusable Delay, such party shall be temporarily
relieved of its obligation to perform, provided it promptly notifies the other
party of the specific delay and exercises due diligence to remove or overcome
it. The words "Excusable Delay" shall mean any delay due to strikes, lockouts or
other labor or industrial disturbance; civil disturbance; future order of any
government, court or regulatory body claiming jurisdiction; act of the public
enemy; war, riot, sabotage, blockade or embargo; failure or inability to secure
materials, supplies or labor through ordinary sources by reason of shortages or
priority or similar regulation or order of any government or regulatory body;
lightning, earthquake, fire, storm, hurricane, tornado, flood, washout or
explosion, or act or omission of one party hereto which prevents the party
claiming delay from complying, or which materially and adversely interferes with
the claiming party's ability to comply with an obligation under this Lease on
its part to be performed.

                                       27
<PAGE>

                               ARTICLE THIRTY-ONE

                                  MISCELLANEOUS

       Section 31.01. RULES OF INTERPRETATION. This Lease shall be strictly
construed neither against Landlord or Tenant, Landlord and Tenant hereby
agreeing that both parties have participated fully and equally in the
preparation of this Lease and that legal counsel was consulted by each before
each signed and delivered a counterpart of this Lease to the other party; each
provision hereof shall be deemed both a covenant and a condition running with
the land; except as otherwise expressly provided in this Lease and its EXHIBITS
and Attachments, the singular includes the plural and the plural includes the
singular, "or" is not exclusive; a reference to an agreement or other contract
includes supplements and amendments thereto to the extent permitted by this
Lease; a reference to the Laws includes any amendment or supplement to such
Laws; a reference to a Person includes its permitted successors and assigns;
accounting provisions shall have the meanings assigned to them by generally
accepted accounting principles and practices applied on a consistent basis; the
words "such as," "include," "includes" and "including" are not limiting; except
as specifically agreed upon in this Lease, any right may be exercised at any
time and from time to time and all obligations are continuing obligations
throughout the Term; in calculating any time period, the first day shall be
excluded and the last day shall be included and all days are calendar days
unless otherwise specified; the word "Person" shall mean any partnership,
corporation (limited or otherwise), individual, trust, association and any other
entity; and the words "Governmental Authority" shall mean local, state and
federal governmental and quasi-governmental agencies, departments, commissions,
boards and bureaus.

       Section 31.02. NO EXCLUSIVE REMEDIES. No remedy or election given by any
provision in this Lease shall be deemed exclusive unless so indicated, but each
shall, wherever possible, be cumulative in addition to all other remedies at Law
or in equity which either party may have arising out of an event of default of
the other party.

      Section 31.03. GOVERNING LAWS. This Lease shall be governed in all
respects by the Laws of the State of New York.

       Section 31.04. NON-DISCLOSURE OF LEASE.

       (a) Prior to the Term Commencement Date, Landlord and Tenant and their
respective agents, employees and contractors

                                       28
<PAGE>

shall not disclose the existence of this Lease without written consent of the
other.

       (b) Landlord and Tenant and their respective agents, employees and
contractors shall keep the provisions of this Lease in confidence and shall not
publish or disclose the same at any time during the Term except as permitted by
ARTICLE THIRTY-TWO and paragraph (c) below.

       (c) This Section shall not apply to disclosures that must be made by
Landlord or Tenant to obtain financing for the Project, sale of the Project or
any part of the Leased Premises or business carried on therein, assignment of
this Lease, or subletting of the Leased Premises.

                               ARTICLE THIRTY-TWO

                               MEMORANDUM OF LEASE

       This Lease shall not be filed on the public record by either Landlord or
Tenant. However, either party may request that a memorandum of this Lease be
filed in a form reasonably acceptable to both. The requesting party shall pay
all costs of filing.

                             ARTICLE THIRTY - THREE

                            ENVIRONMENTAL OBLIGATIONS

       Section 33.01. APPROVED AND PROHIBITED CHEMICALS.

       (a) Tenant covenants that no Hazardous Materials shall be brought onto,
or stored or used at the Leased Premises by Tenant or any of its employees,
agents, independent contractors, licensees, assignees, subtenants or other
invitees, except for materials that are typically found at suburban commercial
office complexes and the chemicals listed in SCHEDULE B, titled "Approved
Chemicals." Without limiting the foregoing, Tenant acknowledges that the
following substances are "Prohibited Substances" and shall not be brought onto
the Leased Premises;

       Phenol compounds
       Methylene chloride
       1, 2 Dichlorobenzene
       Trichloroethylene
       Class I, Group I, ozone depleting chemicals
       1,1,1 Trichloroethane (TCA)
       Mercury (other than elemental mercury)
       PCBs

                                       29
<PAGE>

       PBBs
       Dioxin
       Glycol Ethers

       (b) Tenant may make a written request for a particular Hazardous Material
to be approved by Landlord for use at the Leased Premises. Landlord shall
respond to Tenant's request within five (5) business days from receipt of the
request and Landlord's consent shall not be unreasonably withheld or delayed.

       (c) Additional Hazardous Materials may be added to the foregoing list of
Prohibited Substances upon written notice by Landlord to Tenant if use of such
Hazardous Materials in production is prohibited in the future by the
environmental Laws. Further, the parties agree that Landlord, in its sole
discretion, may prohibit the following Hazardous Materials from being used in
production processes at the Leased Premises:

       Perchloroethylene
       Hydrochlorofluorocarbons (HCFCs)
       Low level radioactive waste

No Hazardous Materials shall be placed into the plumbing or waste treatment
systems of the Leased Premises.

       Section 33.02. TENANT'S INDEMNITY. Tenant shall hold harmless, indemnify
and defend Landlord and any mortgagee and their respective directors, employees,
successors and assigns, from and against any Environmental Damages (defined
below) resulting from events occurring on or about the Leased Premises during
the Term and caused by Tenant or its employees or invitees, except for
Environmental Damages caused by the negligence or misconduct of any one or more
of Landlord or the mortgagee and their respective directors, employees,
successors and assigns. Tenant's indemnification obligation hereinabove set
forth shall survive the expiration or earlier termination of the Term.

      Section 33.03. NOTIFICATION OF SPILL OR RELEASE/
                     REMEDIATION.

      Tenant shall promptly notify Landlord when Tenant becomes aware of (1) the
presence of Hazardous Materials within the Leased Premises which were not
previously authorized by Landlord in accordance with the provisions of this
Section or approved in writing by Landlord, and (2) the release to the Project
(including the Leased Premises) or to the air of Hazardous Materials, whether or
not caused or permitted by Tenant. Such

                                       30
<PAGE>

notice shall include as much detail as reasonably possible, including identity
of the location, type and quantity of Hazardous Materials released. Tenant, at
its sole expense, shall promptly take all actions required by the applicable Law
to return the Leased Premises to the condition existing prior to the events
which resulted in Environmental Damages for which it is responsible hereunder.

       Section 33.04. DEFINITIONS.

       (a) "Environmental Damages" shall mean all claims, judgements, damages
(including punitive damages), losses, penalties, fines, liabilities (including
strict liability), encumbrances and liens, and any other costs and expenses,
resulting from the existence on or in, or release to the ground or air of
Hazardous Materials in violation of or alleged to be in violation of the Laws
applicable thereto, including any attorneys' fees, disbursements, consultant's
fees and other costs resulting from (a) investigation and defense of any alleged
claim and (b) directive of any Governmental Authorities, whether or not the
claims or directives are groundless, false or fraudulent or ultimately defeated,
and (c) any settlement or judgement.

       (b) "Hazardous Materials" shall mean any hazardous or toxic substance,
material or waste (including constituents thereof) which is or becomes regulated
by one or more Governmental Authorities and shall include the Prohibited
Substances. The words "Hazardous Material" include any material or substance
which is (1) listed or defined as a "hazardous waste," "extremely hazardous
waste," "restricted hazardous waste," "hazardous substance" or "toxic substance"
under the Laws, (2) petroleum and its byproducts, (3) asbestos, radon gas, urea
formaldehyde foam insulation, (4) polychlorinated biphenyl, or (5) designated as
a hazardous or toxic waste or substance or words of similar import pursuant to
the Federal Water Pollution Control Act (33 U.S.C. 1317), the Federal Resource
Conservation and Recovery Act, (42 U.S.C. 6903), the Comprehensive Environmental
Response, Compensation and Liability Act, as amended (42 U.S.C. 9601 et seq.),
the Toxic Substances Control Act (15 U.S.C. 2601 et seq.), or the Hazardous
Materials Transportation Act (49 U.S.C. Section 1801 et seq.).

                               ARTICLE THIRTY-FOUR

                             LEASED PREMISES "AS IS"

       Except for (i) Landlord's work required to be performed by Landlord
pursuant to and as described in ATTACHMENT C, (ii) such

                                       31
<PAGE>

representations, warranties and covenants, if any, with respect to the "Real
Estate," as provided in the Outsourcing Base and (iii) such representations,
warranties, covenants and indemnities with respect to environmental matters, as
provided in this Lease, Tenant accepts possession of the Leased Premises in
their "AS IS" condition "WITH ALL FAULTS" and Landlord shall not be required to
perform any work or furnish any materials or provide any services to or in
connection with the Leased Premises during the Term except as specifically
agreed upon in this Lease. The parties acknowledge and agree that the Basic Rent
has been established in material reliance on Tenant accepting the Leased
Premises in their "AS IS" condition "WITH ALL FAULTS."

                               ARTICLE THIRTY-FIVE

                           REPRESENTATIONS OF LANDLORD

       Landlord hereby represents and warrants to Tenant as of the date of
delivery of possession of the Leased Premises to Tenant as follows: (a) there
are no liens on the Leased Premises which would prevent Tenant from using the
Leased Premises for Tenant's permitted uses (as defined in ARTICLE SIX); (b) all
fixtures and electrical and mechanical systems are in good working order,
including plumbing and glass; (c) to the best of Landlord's knowledge, the
Leased Premises are in compliance in all material respects with all Laws, and
other requirements of Governmental Authorities, (including 1 the Resource
Conservation and Recovery Act, 43 U.S.C. 6901 et seq., the Comprehensive
Environmental Response Compensation and Liability Act, 42 U.S.C. 9601 et seq.,
The Clean Water Act, 33 U.S.C. 1251 et seq., and all environmental, health and
safety laws, ordinances, rules and regulations relating to regulation or control
of hazardous or toxic substances wastes, or related materials), relating to the
use, condition and occupancy of the Leased Premises; (d) to the best of
Landlord's knowledge, the Leased Premises are free from structural defects and
the roof is water tight; (e) the permitted uses of Tenant may be conducted on
the Leased Premises, (f) the Leased Premises have not been used to generate,
manufacture, or dispose of Hazardous Materials, and have never had Hazardous
Materials released or spilled thereon which violated the Law and (g) Landlord
has not been given notice by any Governmental Authority of any actual or
suspected environmental impairment activities on the Leased Premises. Landlord
agrees, throughout the Term, to modify the Leased Premises as necessary for the
Leased Premises to remain in compliance in all material respects with all
applicable building and zoning codes as they may be amended or modified.

                                       32
<PAGE>

                               ARTICLE THIRTY-SIX

                                   INDEMNITIES

      Section 36.01. LANDLORD'S INDEMNITY. Landlord hereby agrees to indemnify,
defend and hold harmless Tenant, its shareholders, officers, directors,
employees and lenders (to the extent they have an interest in the Leased
Premises, Tenant's Personal Property or any aspect of the business conducted at
the Leased Premises), and each of their respective successors and assigns, from
and against any and all costs (including reasonable attorneys' fees and the fees
of other expert consultants) fines, penalties, claims, actions, demands,
expenses and judgments for loss, damage or injury to property or person
resulting from or occurring by reason of (i) any breach by Landlord of its
obligations set forth in this Lease, or (ii) the presence of any Hazardous
Materials in, on, under or about the Leased Premises resulting from use or
activities of any Person on or about the Leased Premises other than Tenant, its
shareholders, officers, directors, employees and lenders (to the extent stated
above); provided such presence of Hazardous Materials is a violation of the Law.

      Section 36.02. TENANT'S INDEMNITY. Supplementing Section 33.02, titled
"Tenant's Indemnity," Tenant hereby agrees to indemnify, defend and hold
harmless Landlord, its shareholders, directors, officers, employees and lenders
(to the extent they have an interest in any part of the Project, Landlord's
equipment and other personal property thereon or any aspect of the business
conducted by Landlord at the Project), and each of their respective successors
and assigns, from and against any and all costs (including reasonable attorneys'
fees and the fees of other expert consultants) fines, penalties, claims,
actions, demands, expenses and judgments for loss, damage or injury to property
or person resulting from or occurring by reason of (i) any breach by Tenant of
its obligations set forth in this Lease, or (ii) the presence of any Hazardous
Materials in, on, under or about the Project resulting from Tenant's or its
employees' or invitees' use or activities on or about the Leased Premises;
provided such presence is a violation of the Law.

      Section 36.03. SURVIVAL.

      This ARTICLE THIRTY-SIX shall survive the expiration or earlier
termination of this Lease.

                                       33
<PAGE>
                               ARTICLE THIRTY-SEVEN

                                  LABOR HARMONY

      (a)  Landlord and Tenant acknowledge the importance of maintaining a
work environment at the Project that will not subject any neutral employer to
any interruption of its operations due to a labor disturbance or activity
(herein a "labor disturbance"), whether or not such disturbance or activity is
protected by labor Laws involving the employees of another employer at the
Project, or the employees of any of their respective contractors,
subcontractors, suppliers or other invitees. Landlord and Tenant shall make
reasonable good faith efforts to avoid strikes, picketing and other labor
disturbances at the Project by their respective employees, contractors,
subcontractors, suppliers and other invitees.

      (b)  If there is a labor disturbance adversely affecting the Project,
Landlord or Tenant, as appropriate, agrees to take prompt, reasonable and
lawful action to isolate the location of that disturbance so as not to
interrupt the business operations of the other or its occupants. As soon as
either becomes aware that a labor disturbance is threatened, it shall notify
the other and shall take prompt, reasonable and lawful action to ensure that any
labor disturbance will not affect the business operations of the other and
is limited to as small and specific an area as possible. Such action may
include establishing a separate gate reserved for the employees, contractors,
suppliers, or other invitees of the employer primarily involved in the labor
disturbance and another separate gate or gates for the employees, contractors,
subcontractors, suppliers and other invitees of all those not involved in the
dispute. The party involved in the labor disturbance shall promptly post
the gates located on its property with appropriate signs and shall notify, in
writing, the labor organization or other group creating the labor disturbance
that separate reserved gates have been established. The party involved in the
labor disturbance shall take any action reasonably necessary to ensure for
that Person's use. However, all actions taken by Landlord or Tenant hereunder
shall be limited to those permitted by Laws, including the National Labor
Relations Act.

                                      34
<PAGE>

                              ARTICLE THIRTY-EIGHT

                                OTHER AGREEMENTS

       Landlord and Tenant are parties to the Outsourcing Base Agreement and
other agreements executed and delivered as of the date hereof in connection with
the outsourcing of part of Landlord's business to Tenant (such agreements are
collectively called the "Other Agreements"). Landlord and Tenant shall comply
with all of the provisions of the Other Agreements and, anything herein to the
contrary notwithstanding, the provisions of this Lease shall not supersede,
alter, amend or modify the provisions of the Other Agreements. If there is any
conflict between the provisions of this Lease and any provisions of the Other
Agreements, the provisions of the Other Agreements shall control.

                               ARTICLE THIRTY-NINE

                                BINDING AGREEMENT

       This Lease shall bind and inure to the benefit of Tenant's and Landlord's
respective representatives, successors and permitted assigns. By delivering to
the other a signed counterpart of this Lease, Landlord and Tenant each hereby
represent and warrant to the other that (a) execution and delivery of this Lease
and performance of the obligations on its part to be performed hereunder are
within its power and authority and have been duly authorized by all necessary
action required by its organization; (b) this Lease is valid, legal and binding
obligation of each and enforceable in accordance with its terms; and (c) this
Lease has been validly signed and delivered by duly authorized representatives
of Landlord and Tenant.

                                  ARTICLE FORTY

                                TRANSITION SPACE

       From the Term Commencement Date until the date that Tenant relocates all
of its business operations and personnel into the Leased Premises, former
employees of Landlord who become Tenant's employees on the Term Commencement
Date are hereby permitted to remain at their current location in Building No.
103. The terms of this Lease shall apply as if the current location of the
employee were part of the Leased Premises until such time as all of the
employees at a discreet location are moved to the Leased Premises; except that
certain utilities shall be charged in accordance with the agreements set forth
on SCHEDULE A.

                                       35
<PAGE>

                                ARTICLE FORTY-ONE

                                ENTIRE AGREEMENT

       This Lease, including all EXHIBITS and Attachments referred to herein,
contains the entire agreement of Landlord and Tenant with respect to the matters
stated herein, and may not be modified except by an instrument in writing which
is signed by both parties and delivered by each to the other. Such EXHIBITS and
Attachments are incorporated herein as fully as if their contents were set out
in full at each point of reference to them.

       IN WITNESS WHEREOF, this Lease has been executed by the duly authorized
representatives of Landlord and Tenant as of the date first written above.

WITNESS:                              MANUFACTURERS' SERVICES WESTERN
                                        U.S. OPERATIONS,

/s/ Dale Johnson                      By: /s/ Kevin Melia
------------------------                  ---------------------------
General Counsel                       Title: President, CEO
                                             ------------------------

WITNESS:                              INTERNATIONAL BUSINESS MACHINES
                                        CORPORATION

/s/ A.R. Wolfert                      By: /s/ J.Robb Mayo
------------------------                  ---------------------------
    A.R. Wolfert                              J. Robb Mayo
    Associate General Counsel                 Director of US Real Estate
    IBM Real Estate Services                  Operations and Investments

                                       36
<PAGE>

                                   EXHIBIT A-1

                         DESCRIPTION OF LEASED PREMISES

                                           APPROXIMATE RENTABLE
BUILDING NO.                USE                SQUARE FEET
------------                ---                -----------

 002                     Warehouse                153,439
                         (Receiving)

 002                     Office, Lab               44,029
 (Mezzanine)

 003                     Warehouse                 76,015
                         (Storage)

<PAGE>

                                  IBM CHARLOTTE
                                  -------------
                           Warehouse: Bldg's 002 / 003

                           [GRAPHIC OF A FLOOR PLAN]

                                   EXHIBIT A-2

<PAGE>

                                    EXHIBIT B

                             DESCRIPTION OF PROJECT
                                       AND
                             BUILDING PARKING AREA

                                   (next page)

<PAGE>

                                  IBM CHARLOTTE
                                  -------------
                                  Site Profile

                          [GRAPHIC OF A SITE PROFILE]

                                    EXHIBIT B

<PAGE>

                                  ATTACHMENT A

                       ELECTRICITY AND COMPRESSED AIR SPEC

       Electricity provided to the premises will be at a nominal 120/208 volts,
single phase and 480 volts, three phase service up to the capacity of the
Building 002 substation (2000 kva). All substations in Buildings 002 and 003
will be metered and charged at the rate set forth in Schedule A.

       Oil free compressed air shall be provided at 90 psi and maximum dewpoint
of 40 degrees F at Tenant's service connection. Usage will be metered at the
entrance to the space and charged at the rate set forth in Schedule A.

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 1 of 6
                          TENANT RULES AND REGULATIONS

                          Attached to and made part of
                                      Lease
                                     between
                   International Business Machines Corporation
                                       and
                                       XYZ

                                 January 1, 1998

       Tenant shall comply with the following rules and regulations:

       Landlord reserves the right to delete, modify, and add additional rules
provided Tenant is furnished a copy thereof. For the purpose of these rules, the
word "Tenant" shall include Tenant's employees, agents, contractors,
representatives and other invitees.

BADGE ACCESS

       (a) Tenant will be allowed access to the Leased Premises and to
designated public areas of the Project, including the cafeteria and IBM lobby,
by badge. Tenant's access badges will be provided by Landlord at no cost to
Tenant and must be worn at all times while on the Project except within the
Leased Premises. Badge holders must badge-in individually and must not allow
persons behind them to enter unless they "light the light" with their own badge.
If they do not have a badge or their badge does not work, direct them to the
main lobby central security center in Building 301 for visitor sign in, or for a
temporary badge, or for determination of why their badge does not work. If a
badge is lost or stolen, Landlord must be notified immediately. Landlord
reserves the right to challenge persons leaving or entering any part of the
Project. Visitors are provided dated, temporary badges and require an escort at
all times within the Project public areas.

       (b) In Landlord's sole discretion, Tenant's employees and invitees will
be allowed internal access to the Project's cafeteria during breakfast and lunch
periods. Landlord reserves the right, in its reasonable discretion, to withdraw
permission to use the internal access route and, thereafter prohibit further use
thereof by Tenant's employees and invitees'.

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 2 of 6
                          TENANT RULES AND REGULATIONS

COMMON FACILITIES

       (a) The sidewalks, halls, passages, elevators, stairways, exits,
entrances, and other common areas shall not be obstructed by Tenant or used for
any purpose other than ingress to or egress from any part of the Project. The
halls, passages, exits, entrances, elevators, stairways, balconies, and roof are
not for the use of the general public. Landlord shall in all cases retain the
right to control and prevent access thereto of all persons whose presence, in
the sole judgment of Landlord, shall be prejudicial to the safety, character,
reputation, and interests of the Project and its occupants. However, nothing
stated above shall be construed to prevent access of the Leased Premises to
Tenant and to persons with whom Tenant normally deals in the ordinary of its
business unless such persons are engaged in illegal activities or misconduct
such as erratic or aggressive behavior. Tenant shall not go upon the roof of the
Leased Premises without the written consent of the Landlord which Landlord may
withhold in its sole discretion.

       (b) Tenant shall not park in areas other than the Building Parking Area.
Illegally parked vehicles may be towed at Tenant's expense.

       (c) Tenant shall not repair, adjust, improve or alter the Building
Service Systems without the expressed consent of Landlord.

VISITORS

       (a) Visits by anyone to the Project other than the Leased Premises (but
including the cafeteria and IBM lobby) who is employed by an IBM Competitor must
be pre-approved by IBM, whether or not the visitor is representing the competing
company at the time of the visit. An "IBM Competitor" is anyone who is in a
business that competes with the business carried on by IBM at the Project and
any other business specified in writing by IBM to Tenant reasonably related
to IBM's business at the Project.

       (b) Any visit to the Project by a person who is a representative of any
organization of, or located within, a restricted trade country, as defined from
time to time by the U.S. Export Regulations, requires the prior approval of
Landlord and Landlord's lawyers.

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 3 of 6
                          TENANT RULES AND REGULATIONS

USE OF FACILITIES

       (a) The bathroom facilities shall not be used for any purpose other than
that for which they were constructed and no foreign substance of any kind
whatsoever shall be thrown therein. The expense of any breakage, stoppage, or
damage resulting from a violation of this rule shall be borne by Tenant who (or
whose employees, agents, contractors, or other invitees) caused the violation.

       (b) If Landlord, by notice in writing to Tenant, shall object to any
curtain, blind, shade, or screen attached to, or hung in, or used in connection
with, any window or door of the Leased Premises, such use of curtain, blind,
shade or screen shall be forthwith discontinued by Tenant.

       (c) None of Tenant's Personal Property or other items heavier than the
lift capacity of the freight elevator of the Leased Premises shall be brought
into or installed in the Leased Premises without Landlord's written approval.
Tenant shall not place a load upon any floor of the Leased Premises which
exceeds the design load of the floor.

       (d) No portion of the Leased Premises shall be used for cooking, lodging
or sleeping except customary and reasonable office microwave ovens and
refrigerators for employee use. All contract vending requirements shall be
provided by Landlord's vending contractor.

       (e) Except for noise caused by Tenant's card manufacturing process, which
Landlord agrees is acceptable, Tenant shall not make noises, cause disturbances
or vibrations, or use or operate any electrical or electronic devices that emit
sound or other waves or disturbances or create odors if unreasonably offensive
to anyone or if they interfere with the operation of any device, equipment or
radio or television broadcasting or reception, in each case as determined by
Landlord in its sole discretion. Animals shall not be brought onto the Project,
except for assistance of the disabled without the consent of Landlord, which it
may withhold in its sole discretion.

       (f) Smoking is prohibited in all areas of the Leased Premises, which
includes hallways, rest rooms, lobbies, stairwells, elevators, and any other
Common Facility, whether occupied or unoccupied. Tenant shall prohibit any
employee and invitees from smoking or carrying a lighted cigar, cigarette,

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 4 of 6
                          TENANT RULES AND REGULATIONS

pipe, etc. "Smoking" means inhaling, exhaling, burning, or carrying any lighted
cigar, pipe cigarette, weed, plant or other combustible substance in any manner
or in any form.

ADVERTISING, SOLICITATION, SALES

       (a) Without Landlord's prior written consent, Tenant shall not use the
name or picture of the Project (except for a picture of the Leased Premises) or
the name "IBM" or "International Business Machines Corporation" or any affiliate
of IBM in its advertising or other publicity, or on its stationary, on the
Internet or in any other medium.

       (b) Tenant shall not canvass or solicit business from other tenants or
occupants at the Project, and shall not exhibit, sell or offer to sell, use,
rent or exchange in or from the Leased Premises.

       (c) Tenant shall not conduct any auction, fire, bankruptcy, going out of
business, liquidation or similar sales anywhere at the Project.

APPROVALS/PERMITS

       (1) Without limiting any other obligation required by provisions of the
Lease, Tenant must obtain a permit or approval from Landlord (not to be
unreasonably withheld or delayed) before:

      a.    Using a laser or x-ray
      b.    Disturbing asbestos containing material (ACM) or presumed asbestos
            containing material (PACM)
      c.    Working in an area where there is reasonable potential to disturb
            ACM or PACM
      d.    Internal combustion engine use indoors
      e.    Blasting or explosives use
      f.    Explosive (powder) actuated fastening tool use
      g.    Airlifting, crane, mobile crane, or hoist use
      h.    Use of powered industrial vehicles
      i.    Cutting, welding, burning, or open flame work
      j.    Entering a confined space
      k.    Moving or relocating any emergency equipment
      l.    Fire alarm work or sprinkler impairment
      m.    Using salamanders or heaters
      n.    Installing an air emission source regulated by the Mecklenburg
            County Department of Environmental Protection

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 5 of 6
                          TENANT RULES AND REGULATIONS

      o.    Connecting to or disconnecting from the Building Service Systems,
            storm drain, or sanitary sewer
      p.    Introduction of a Hazardous Material except as authorized in ARTICLE
            THIRTY-THREE

      (2) Approvals/permits shall be requested through Landlord's Safety,
      Environmental and Industrial Hygiene Department.

      (3) Tenant shall notify Landlord prior to using any ionizing radiation
      source.

SAFETY AND SECURITY

      (a) In the event of an emergency evacuation of any part of the Leased
Premises, occupants will be notified via the Project's public address system.
There will be a distinctive set of tones followed by an announcement. All
occupants must become familiar and group assembly location. Evacuation route
maps which must be posted by Tenant in the Leased Premises. In an evacuation,
Tenant's employee's and invitees will go to a pre-selected area outside the
Leased Premises. All personnel will be accounted for by Tenant. Whenever Tenant
calls for an evacuation, the emergency must be reported on 4-2222 so that
appropriate emergency personnel can respond. Landlord shall furnish emergency
number decals required for every phone. Tenant shall call 4-2220 to obtain them.

      (b) All fire and medical emergencies as well as threats and acts of
violence must be reported immediately to the IBM Building 301 Security Center,
ext. 42222.

      (c) Weapons of any sort (e.g., guns, knives, archery equipment,
explosives, and ammunition) are not permitted on the Project. The manufacture,
use, distribution, sale, or possession of illegal drugs or alcoholic beverages
or other controlled substances, except for purposes approved by Landlord in its
sole discretion, is prohibited on the Project.

      (d) Landlord reserves the right to exclude or expel from the Project any
person who, in the sole judgment of Landlord, is intoxicated or under the
influence of liquor or drugs, or who poses a security risk to the Project or any
occupant or invitee of the Project, or who shall in any manner threatens to do
or does any act in violation of the Law or these rules.

<PAGE>

                                  ATTACHMENT B
                                                                     PAGE 6 of 6
                          TENANT RULES AND REGULATIONS

      (e) Cameras and recording devices may be used solely within the Leased
Premises at any time without the consent of Landlord but may not be used at any
other portion of the Project without Landlord's written consent. Tenant must
obtain a camera pass for any camera brought into any building at the Project,
including the Leased Premises.

      (f) Tenant will, become familiar with and comply with the most current
version of the IBM CHARLOTTE GUIDE TO SAFETY & SECURITY, copies of which Tenant
agrees it has received.

NOTIFICATIONS TO LANDLORD

      (a) Tenant shall immediately notify Landlord of any serious injury,
illness, or threat occurring at the Leased Premises and of any significant
damage to the Leased Premises. Tenant shall follow up with a written statement
of the facts of the incident by the close of the next business day.

      (b) Tenant shall notify Landlord if a charge of noncompliance with OSHA or
any other regulatory agency is filed against Tenant in connection with Tenant's
operations performed at the Project.

NONHAZARDOUS WASTE STORAGE /DISPOSAL

      Tenant shall store all of its trash, refuse, and waste materials within
the Leased Premises or in such location as Landlord may designate. All trash,
refuse, and waste materials shall be stored in adequate containers so as not to
constitute a health or fire hazard or a nuisance. No burning of trash, refuse,
and waste materials shall be allowed

<PAGE>

                                  ATTACHMENT C

                   LANDLORD FIT-UP WORK AND METER INSTALLATION

Prior to December 31, 1998, Landlord shall, at its sole expense, complete the
following:

1.    Relocate complete manufacturing lines from Building 103 to the Leased
      Premises.

2.    Install meters to measure the amount of electricity, chilled water and
      compressed air consumed within the Leased Premises. Compressed air and
      chilled water meters will be installed at the entrance of these services
      to the Leased Premises. Electrical consumption meters will be installed at
      each unit substation within the Leased Premises.

3.    Install physical wiring for telephone infrastructure within the Leased
      Premises.

<PAGE>
                                   SCHEDULE A
                                                                     PAGE 1 of 2
                                  REIMBURSEMENT

                                       FOR

                             UTILITIES AND SERVICES

                                 PRICING - 1998

UTILITY PRICES

Electricity              $ per kWh               $0.05

Chilled Water            $ per Ton Hr.           $0.08

Compressed Air           $ per 100 SCF           $O.035

SERVICES

Repairs caused by acts/omissions of Tenant at Landlord's cost.

If requested by Tenant and the specs and other terms are agreed upon in writing,
housekeeping services at Landlord's cost.

Engineering and construction management at Landlord's cost.

Construction at Landlord's cost.

No other services will be provided or offered to Tenant except for those
specifically agreed upon in this Lease.

ELECTRICITY

      (1) Referring to the electricity charge, Landlord shall furnish
electricity during the transition period described below and during the Initial
Term (defined in Section 2.01) at no cost to Tenant. Tenant shall pay for
electrical consumption during the Extended Term (defined in Section 2.02) in
accordance with this Schedule A.

      (2) Referring to the electricity charge, $0.05/KWH is an estimate to be
paid by Tenant. Within forty-five (45) days following the end of each lease
year, beginning forty-five (45) days following the end of the first lease year,
Landlord shall compare the actual payments made by Tenant based on $0.05/KWH
against the average rate/KWH paid by Landlord to the electric utility servicing
the Project during such lease year. To the extent actual payments made by Tenant
exceed the payments it

<PAGE>

                                   SCHEDULE A
                                                                     PAGE 2 of 2
                                  REIMBURSEMENT

                                       FOR

                             UTILITIES AND SERVICES

                                 PRICING - 1998

would have made if such average cost/KWH had been charged, Landlord shall credit
the amount of such excess payment against the Basic Rent due in March of the
year of such reconciliation. If for any reason the Term has ended prior to March
of any year, Landlord shall, within thirty (30) days after completing its
reconciliation, pay Tenant the excess amount, if any. This paragraph (3) shall
survive the end of the Term.

GENERAL

      (1) Once each year during the Term, beginning on the first day of the
second lease year, the prices listed above may be changed by Landlord upon
thirty (30) day written notice from Landlord to Tenant; except that in no event
shall the utility costs be changed except to the extent changed by the utility
provider.

      (2) For jobs costing more than Fifty Thousand Dollars ($50,000.00),
Landlord and Tenant shall arrange for monthly reimbursements to be paid to
Landlord for work agreed upon to be in place the previous month.

TRANSITION PERIOD

      Notwithstanding any provision in this Lease to the contrary, during the
transition period, Tenant shall pay the Basic Rent plus Eight Thousand Dollars
($8,000.00) each month as an estimated payment for chilled water and compressed
air. Within ninety (90) days after the initial twelve (12) consecutive full
calendar months following the date that all of Tenant's employees will have
relocated to Building No. 002 and 003, the charges for these two (2) utilities
will be adjusted to reflect the actual cost that Tenant incurred during such
first twelve (12) month period.

<PAGE>

                                   SCHEDULE B
                                                                     Page 1 of 5
                               APPROVED CHEMICALS

CHEMICAL NAME
3-IN-ONE OIL
30W OIL
3M 2214
141 PGMNT INK WHITE YELLOW ORA
309 EPOXY PART A
309 EPOXY PART B
3M 2216 GRAY EPOXY KIT A/B
3M 2216 GRAY EPOXY PART A
3M 2216 GRAY EPOXY PART B
3M 2290 EPOXY ADHESIVE/COATING
3M 826 ADHESIVE
3M DESK & OFFICE CLEANER NO.57
3M EC-1838 ADHESIVE KIT A/B
3M EC-1838 ADHESIVE PART A
3M EC-1838 ADHESIVE PART B
AMOCO SUPERMIL M-125
ACETONE
AIR DRY WATERBORNE ACRYLIC (36
AMOCO SUPERMIL M-125
ARMITAGE GRAPHITE GRAY TOUCH U
ARMITAGE WM-04061A PEARL WHITE
ABMITAGE WM-04071A LIGHT GRAY
ARMITAGE WM-04105A RAVEN BLACK
ARMITAGE WM-04111A CLASSIC BLU
ARMITAGE WM-04117A #733 PEBBLE
ARO LIGHT OIL 29665, LUBRIPLAT
ALVANIA 2 GREASE
ALVANIA EP GREASE 2
ANDEROL 732
ACL STATICIDE
ALPHA SOLDER 60/40 ROSIN CORE,
BASIC-H INDUSTRIAL CLEANER
BORDEN E601 EPOXY PART A
BORDEN E601 EPOXY PART B
BORDEN EPOXY E-601 PARTS A/B K
BOSTIK ANTI-SEIZE
CA-20
CITRUS HAND CLEANER
CA-40H INSTANT ADHESIVE
CARBOLINE Fl NEOPRENE ADHESIVE
CHESTERTON PENETRATING OIL 813
DEXTRON ATF
DOW CORNING 44 GREASE
DOW CORNING MOLYKOTE 340
DARINA #1 (IBM #23) GREASE

<PAGE>

                                   SCHEDULE B
                                                                     Page 2 of 5
                               APPROVED CHEMICALS

DEEP CHARCOAL V-6320 (P/N 2108
DOW CORNING MOLYKOTE 340 HEATS
DOW CORNING MOLYKOTE GN (ARO 4
DOW CORNING RTV 3145
DOW CORNING RTV 732 BLACK
DOW CORNING RTV 732 CLEAR OR W
DARINA 1 GREASE
DOW CORNING RTV 3145
DTE 797 LIGHT OIL
ELECTRODAG 504
EPK 0151 RESIN
ESPREE MAG WHEEL CLEANER
ESPREE WHEEL MAGIC
EK-40 WHITE FASTCURE EPOXY HAR
EK-40 WHITE FASTCURE EPOXY KIT
EK-40 WHITE FASTCURE EPOXY RES
FABER CASTELL,INK, UNIT-PAINT MA
FINGER LAKES 3-D DEGREASER
FLUOROLAST LC-8125
FULTON INDELIBLE INK (CAROLINA
FAST DRY ACRYLIC ENAMEL (F78/1
GE RTV 128
GENESOLV 2004 (HCFC)
GE RTV 162
GLYPTAL 1276
GE RTV 106
GE SCS 1202 WHITE
GENERAL PURPOSE CHAIN LUBE
HIGH PERF. EPOXY MASTIC - BASE
HIGH PERF. EPOXY MASTIC ACTIVA
HYSOL 1C EPOXY (IBM 1209)
HYSOL 0151 EPOXY PART B
HYSOL 309 EPOXY KIT A/B
HYSOL TE 400 HIPER HOT MELT AD
IBM 3891XP, 3892X2 INKJET INK
IMMERSION EPOXY ACTIVATOR
INSTA-FOAM COMPONENT A
INSTA-FOAM COMPONENT B
INSTAFILL COMPONENT A
INSTAFILL COMPONENT B
INSTAPAK HOLSTER SOLVENT
INSTAPAK PORT CLEANER (AEROSOL
ISOPROPYL ALCOHOL
JENNY APL COMPOUND
JET-MELT ADHESIVE 3764-AE/PG/T
KRYLON PEBBLE GRAY SPRAY PAINT

<PAGE>

                                   SCHEDULE B
                                                                     Page 3 of 5
                               APPROVED CHEMICALS

KESTER 44 SOLDER
KRYLON GRAY PRIMER 1318
KRYLON BRASS PAINT
KRYLON DEEP CHARCOAL SPRAY PAI
KRYLON PEARL WHITE SPRAY PAINT
KRYLON RAVEN BLACK SPRAY PAINT
LILLY AIR DRY PAINT CLASSIC BL
LILLY PEBBLE GRAY 75502-1359
LOCTITE 222
LOCTITE 262 MEDIUM STRENGTH
LOCTITE 271
LOCTITE 290
LOCTITE 380 (BLACK MAX)
LOCTITE 414
LOCTITE 420
LOCTITE 609 (FORMERLY 601)
LOCTITE 80 GRADE E
LOCTITE 87 GRADE AV
LOCTITE 88 GRADE A
LOCTITE GRADE D ADHESIVE
LOCTITE PRISM 403
LUBRIPLATE 70
LUBRIPLATE MOLTEX 800
LIQUID WRENCH
LITTON 037075 BLUE
LITTON 037750 ORANGE
LOCTITE 242
LOCTITE 404
LOCTITE 495
LOCTITE 76820 NMS CLEAN UP SOL
LOW TEMP. EPOXY MASTIC ACTIVAT
LUBRIPLATE 90s
LUBRIPLATE CHAIN & CABLE FLUID
609 (LOCTITEFORMERLY 601)
MENTOR OIL 28
MOBIL 600W CYLINDER OIL
MOBIL DTE 797 LIGHT OIL (IBM 6
MOO #2 LUBRICANT
MOLYBDENUM DISULFIDE
MOROIL INDLUBE 5-220
MPG-2 GREASE MARKED
6816 WHITE INK 8036056
METHYL ALCOHOL
METHYL ETHYL KETONE
METHYL ISOBUTYL KETONE
METROLAB GRANITE SURFACE PLATE

<PAGE>

                                   SCHEDULE B
                                                                     Page 4 of 5
                               APPROVED CHEMICALS

MOBILGREASE #28
N-METHYL-2-PYRROLIDINONE
NOKORODE SOLDERING PASTE
NOVUS PLASTIC POLISH #1
NOVUS PLASTIC POLISH #2
NYETACT 515M
PERMABOND 910
PROGEL BATTERY CLEANER
PRONTO
PROPANE
PACTRA XF2 WHITE ENAMEL
PRISM 401 SURF-INSENSITIVE 401
PROFESSIONAL WHISTLE RTU ALL P
PRONTO CA-50 GEL INSTANT ADHES
PERMABOND 910
RTV 732 CLEAR OR WHITE
RTV133
RANDOLPH CLASSIC BLUE V-6327 S
RANDOLPH LIGHT GRAY V-1633 SPR
RANDOLPH PEARL WHITE V-6075 SP
RANDOLPH PEBBLE GRAY V-6324 SP
RANDOLPH RAVEN BLACK E-3382 SP
RANGER 278 MARKING INK
RELIANCE PEBBLE GRAY TOUCH UP
SHELL DARINA 1 GREASE (IBM #23
SILASTIC J RTV CURING AGENT
SILASTIC J RTV SILICONE RUBBER
SOLDER
STAR BRITE WHITE TEFLON LUBRIC
STECO TAP MAGIC CUTTING FLUID
SAFETAP
SAFETY RED PAINT
SAFETY YELLOW AEROSOL PAINT 03
STAR BRITE, LUBRICANT, STAR BRIT
SUPER AGITENE
SUPER HPO MOTOR OIL SAE lOW
SCOTCH-WELD DP-100 PLUS (A) CL
SCOTCH-WELD DP-100 PLUS (B) CL
SCOTCH-WELD DP-100 PLUS 2-PART
TELLUS 100 OIL (IBM 10)
TEXWIPE MICRO-DUSTER TX1O4, TX
TORQUE SEAL F-900 ALL COLORS
TRIDENT JETWRITE INK
TEMPO BLACK ULTRA-HIGH TEMPERA
TEXACO CAPELLA OIL
TC-208 THERM. COND. GREASE

<PAGE>

                                   SCHEDULE B
                                                                     Page 5 of 5
                               APPROVED CHEMICALS

TX 2500 THRU 2504 MICRODUSTER
ULTRAJET 2000, FREEZIT 2000, ES1
VALVOLINE SAE 140 OIL
WD-40 OIL
WL-24529A IBM TAIWAN T UP ECOL
YELLOW 77 WIRE PULLING LUBRICANT

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