Document:

<PAGE>

                                                                   EXHIBIT 10.11

                                    SUBLEASE.

1.      PARTIES

This "SUBLEASE" is entered into as of May 1, 2000, by and between Fairchild
Technologies USA, Inc. ("SUBLESSEE"), and TCI International, Inc. ("SUB
LESSEE"), as a Sublease under the Lease dated September 17, 1997 (the "MASTER
LEASE") by and between Wells Capital (as successor in interest to Rose Ventures
V, Inc. and Thomas G. Haury and Carleen S. Haury) ("LESSOR") and the Sublessor
as "LESSEE". A copy of the Master Lease is attached hereto as Exhibit "A".
Unless otherwise defined herein, all capitalized terms in this Sublease shall
have the same meanings as in the Master Lease.

2.      PREMISES

a.      Sublessor leases to Sublessee and Sublessee hires from Sublessor the
following described premises together with the appurtenances (including the
security system) situated in the City of Fremont, County of Alameda, State of
California, commonly know and described as: 47320 Kato Road, Fremont, an
industrial building of approximately 58,424 square feet (the "PREMISES").

         The existing telephone numbers for the Premises shall continue to be
the property of Sublessor (and Convac Technologies).

[EDITORIAL NOTE FROM TCI TO FAIRCHILD:

         WE WILL NOTIFY YOU NO LATER THAN 10 DAYS BEFORE THE SUBLEASE
COMMENCEMENT DATE WHETHER WE WANT TO ASSUME THE MITEL LEASE.]

         The Premises shall consist of two areas (with different sublease
commencement dates): (1) the "EXCLUDED SPACE," which is defined as Sublessor's
"Sub-Assembly and `Manufacturing Area" on the first floor of the Building,
consisting of approximately 2,132 2,900 sq. ft. and an adjoining storage area of
approximately 152 sq. ft.; and (ii) the "INITIAL Space", which is defined as the
balance of the Premises.

b.       Subject to the repairs described in EXHIBIT "B" hereto, to be performed
by and at the sole expense of Sublessor, and subject to the representations made
in this Sublease, the Premises are accepted by Sublessee "AS IS, WHERE IS,"
without any further representation or warranty of any kind by Lessor or
Sublessor.

c.       Exhibit C hereto identifies certain furniture (collectively referred to
herein as the "Furniture"). In addition, Sublessor has installed certain
moveable interior partitions within the Premises (the "Partitions"). Sublessor
will have no obligation to remove any of the Furniture or the Partitions and
shall deliver possession of the Premises together with the Furniture and the
Partitions to Sublessee, and Sublessee may use, remove oL dispose of the
Furniture and Partitions as Sublessee sees fit.

<PAGE>

d.       Sublessee has submitted to Sublessor (and through Sublessor to Lessor)
the plans dated February 8, 2000 showing the proposed tenant improvements for
the Premises, to be performed at Sublessee's sole expense. Subject to Lessor's
consent, Sublessor has approved the alterations and agreed that none of such
alterations shall be subject to removal or restoration at the termination of
this Sublease. Sublessor's consent shall be null and void in the event Lessor
does not give its consent. Sublessee shall submit such additional plans,
specifications and additional information as Lessor may reasonably require to
grant its consent.

3.       TERM

The term of this Sublease shall be as follows (THE "SUBLEASE COMMENCEMENT DATE")

For the Excluded Space, the period commencing on the date Sublessor no longer
occupies such space (AS EVIDENCED BY A WRITTEN ACKNOWLEDGEMENT OF THE SURRENDER
OF THE EXCLUDED SPACE SIGNED by the Sublessee and ending on November 30, 2004.

For the Initial Space, the period commencing on May 1, 2000 and ending on
November 30, 2004.

Commencing on the dates specified on Exhibit C D hereto, Sublessee shall have
the right to | enter upon the Premises prior to the Sublease Commencement Date
to commence tenant improvement work to be performed by Sublessee at its expense,
subject to the following terms and conditions: [INCORPORATE TERMS AND CONDITIONS
IN PRIOR DRAFT LETTER AGREEMENT].

4.       RENTAL

a.       Sublessee shall pay to Sublessor as base monthly rent, the sum of Forty
Three Thousand Two Hundred Thirty Three and 76/100 Dollars ($43,233.76) per
month, on or in advance of the first day of each month, in lawful money of the
United States of America, commencing on the first day of May 2000. In the event
that the Sublease should commence or end on a day other than the first or the
last day of a calendar month, respectively, the base monthly rent shall be
prorated accordingly. On each yearly anniversary of the Sublease Commencement
Date, the base monthly rent shall be adjusted upward by a three percent (3%)
increase. The schedule of base monthly rent for the term shall be as follows:

<TABLE>
<CAPTION>
Months                                     Base Monthly Rent
------                                     -----------------
<S>                                        <C>
1-12                                        $43,233.76
13-24                                       $44,530.77
25-36                                       $45,866.69
37-48                                       $47,242.69
49-5655                                     $48,659.97
</TABLE>

<PAGE>

Until such time as Sublessor delivers possession of the Excluded Space,
Sublessee shall receive a credit of $200.00 per month DAY for such space
starting from the Sublease COMMENCEMENT DATE. AFTER 30 DAYS, THE CREDIT WILL BE
INCREASED TO $300.00 PER DAY, AND AFTER 60 DAYS, THE CREDIT WILL BE INCREASED TO
$400.00 PER DAY.

b.       In addition to base monthly rent, Sublessee shall pay taxes, insurance
and maintenance to the extent provided for as a Lessee obligation under the
Master Lease (collectively, "Operating Expenses"). Sublessor represents to
Sublessee that current estimated Operating Expenses paid by Sublessor under the
terms of the Prime Lease have been $12 Sublessor makes no representation or
warranty as to what Operating Expenses shall be in the future, nor is
Sublessee's obligation to pay Operating Expenses subject to any caps or similar
limitations.

c.       All payments due by Sublessee under this Section 4, together with such
additional sums as may be due from time to time by Sublessee under the terms of
this Sublease, are collectively referred to herein as "Rent".

5.       Possession

         Sublessor shall use reasonable commercial ITS BEST efforts to deliver
possession of the | Initial Space by May 1, 2000, and to give early access to
Sublessee as per the Schedule set forth|on Exhibit D.

         Notwithstanding said commencement and early access dates, if for any
reason Sublessor cannot deliver possession or early access of the Premises to
Sublessee on said dates, Sublessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease or the
obligations of Sublessee hereunder or extend the term hereof, but in such case
Sublessee shall not be obligated to pay rent until possession of the Premises
is tendered to Sublessee; provided, however, that if Sublessor shall not have
delivered possession of the Premises within sixty (60) days from said
commencement date, Sublessee may, at Sublessee's option, by notice in writing
to Sublessor within ten (10) days thereafter, cancel this Sublease. If
Sublessee cancels the Sublease, Sublessor shall return promptly the security
deposit and first month's Rent previously paid by Sublessee and thereafter the
parties need no longer perform their respective obligations under the Sublease.

         No Rent shall be payable by Sublessee for the early occupancy period
prior to the Sublease Commencement Date.

[EDITORIAL NOTE FROM FAIRCHILD TO TCI: WE WILL NOT PAY ANY DAMAGES AS PROPOSED
IN YOUR DRAFT FOR FAILURE DELIVER OR GIVE EARLY ACCESS.  WE WILL USE REASONABLE
COMMERCIAL EFFORTS TO ABIDE BY SUCH DATES.]

<PAGE>

6.       SECURITY DEPOSIT

a.       Sublessee shall deposit with Sublessor upon the execution hereof
$43,233.76 as security for Sublessee's faithful performance of Sublessee's
obligations hereunder. If Sublessee fails to pay rent or other charges due
hereunder, or otherwise defaults with respect to any portion of this Sublease,
Sublessor may use, apply or retain all or any portion of said deposit for the
payment of any rent or other charge in default or for the payment of any other
sum to which Sublessor may become obligated by reason of Sublessee's default, or
to compensate Sublessor for any loss or damage which Sublessor may suffer
thereby.

b.       If Sublessee performs all of Sublessee's obligations hereunder, said
deposit or so much thereof as has not heretofore been applied by Sublessor,
shall be returned to Sublessee at the expiration of the term hereof, and within
ten (10) days after Sublessee has vacated the Premises.

[EDITORIAL NOTE FROM FAIRCHILD TO TCI: WE WILL NOT PAY INTEREST ON THE SECURITY
DEPOSIT. WE NOTE THAT FAIRCHILD HAS NO SECURITY DEPOSIT WITH THE OWNER, AND
THAT FAIRCHILD REQUIRED NO SECURITY DEPOSIT FROM SAGANTEC OR CONVAC. WE HAVE
ALREADY AGREED TO GIVE YOU A SECURITY DEPOSIT TO GUARANTEE OUR OBLIGATIONS, BUT
IT IS INEQUITABLE FOR FAIRCHILD TO RETAIN THE INTEREST ON THIS MONEY. PLEASE
REINSERT THE INTEREST WORDING.

7.      USE

Subject to complying with all applicable zoning laws and other governmental
regulations, Sublessee shall use the Premises for office, manufacturing and
warehouse (the "AGREED USE,"). Sublessee shall be responsible for determining
compliance with zoning and other regulations.

 8.      PROVISIONS CONSTITUTING SUBLEASE

a.       This Sublease is subject to all of the terms and conditions of the
Master Lease in Exhibit "A" and except as otherwise provided in this Sublease,
Sublessee shall assume and perform the obligations of the Lessee in said Master
Lease arising after the date Sublessee obtains possession of the Premises and
only to the extent said terms and conditions are applicable to the Sublease.
Sublessee shall not commit, or permit to be committed on the Premises any act or
omission which shall violate any term or condition of the Master Lease.

b.       Except for the Excluded Paragraphs (as defined below) and limitations
contained in this Sublease, all of the terms and conditions contained in the
Master Lease are incorporated herein as terms and conditions of this Sublease
(with each reference therein to "Lessor" and "Lessee" to be deemed to refer to
"Sublessor" and "Sublessee" respectively). Such incorporated terms of the Master
Lease, together with all terms set forth herein, shall be the complete terms and
conditions of this Sublease. In the event of any inconsistency or discrepancy
between the Master Lease and this document, the latter shall govern.

c.       The following terms of the Master Lease are not incorporated into the
Sublease (the "EXCLUDED PARAGRAPHS"): Section 1.3 and Article 3 (Term); Section
1.4 (Early Possession); Section 1.5, Section 1.6 and Article 4 (Rent); Section
1.7 and Article 5 (Security Deposit); Section 1.8 (Agreed Use); Section 1.10
(Real Estate Brokers); Section 1.11 and Article 37

<PAGE>

("Guarantor") Sections 2. 1, and 2.2 (Letting; Conditions;); Article 12
(Assignment and Subletting); Article 39 (Options); and Addendum Paragraphs 50,
51, 52, 53, 56, 59, 62, 64 and 65.

[EDITORIAL NOTE FROM FAIRCHILD TO TCI: WE WILL NOT PASS THROUGH RENEWAL OPTIONS
SINCE FAIRCHILD WANTS OFF THE LEASE AT THE END OF THE INITIAL TERM. ANY RENEWAL
OPTIONS WILL HAVE TO BE NEGOTIATED BETWEEN TCI AND THE LESSOR. WITH RESPECT TO
SUBLESSEE'S ASSIGNMENT AND SUBLEASE RIGHTS, THESE SHALL BE AS SET FORTH IN
SECTION 9 OF THIS SUBLEASE, AND NOT AS PROVIDED IN THE PRIME LEASE.]

d.       LESSOR FOR PURPOSES OF INDEMNIFICATION BY TENANT: The term "LESSOR"
used in any incorporated provision of the Master Lease pursuant to which the
Sublessee is required to indemnify, hold harmless, pay attorneys fees, damages
or losses of the "Lessor" shall mean both the Lessor under the Master Lease and
the Sublessor under this Sublease.

e.       LESSOR FOR PURPOSES OF LESSOR OBLIGATIONS UNDER THE MASTER LEASE: The
term "LESSOR" used in any incorporated provision of the Master Lease pursuant to
which the Lessor has maintenance, repair, reconstruction, indemnification,
insurance, or similar obligations shall mean only the Lessor under the Master
Lease, and shall not include the Sublessor under this Sublease. The Sublessor
covenants that it shall use its reasonable commercial efforts (upon Sublessee's
written request) to require Lessor to comply promptly with all Lessor
obligations and shall provide promptly to Sublessee all notices, requests or
other communications received from Lessor affecting the Premises.

9.      ASSIGNMENT OF SUBLEASE

Sublessee shall not assign this Sublease or any interest therein or sublet the
premises or any part thereof or any right or privilege appurtenant thereto nor
permit the occupancy or use of any part thereof by any person without the
written consent of Sublessor first had and obtained, which consent shall not be
unreasonably withheld or delayed, provided that no such assignment or subletting
shall release Sublessor from its obligations hereunder. Any such assignment,
further subletting, occupancy or use without the prior written consent of the
Sublessor shall at the option of the Sublessor terminate this Sublease.
Notwithstandin g the foregoing, the assignment or subletting of all or any part
of the Premises to affiliates or successors of Sublessee shall be permitted
without need for further consent from Sublessor or Lessor, provided that: (i)
Sublessee obtains Lessor's consent; (ii) Sublessee give Sublessor not less than
thirty (30) days prior written notice; (ii) the "affiliate" is not less than
7450% owned by Sublessee, and Sublessee presents | reasonable evidence of such
affiliation to Sublessor; (iv) the "successor" has a net worth not less than
that of the Sublessee, and has acquired substantially all assets of the
Sublessee, and Sublessee provides reasonable evidence of such facts to the
Sublessor; (v) the proposed use of the Premises by the sublessee or assignee
shall be in compliance with all terms of this Sublease; (vi) the sublessee or
assignee shall take subject to all terms of this Sublease, and shall execute and
deliver a sublease or assignment in form reasonably acceptable to the Sublessor;
and (vii) no such assignment or subletting shall release Sublessor from its
obligations hereunder.

<PAGE>

10.      SUBLESSOR'S REPRESENTATIONS AND COVENANTS

Sublessor represents, warrants and covenants to Sublessee as follows:

a.       The Master Lease attached as Exhibit "A" has not been amended or
supplemented and is in full force and effect. During the term of the Sublease,
Sublessee shall not enter into any amendment, supplement, or early termination
of the Master Lease without the prior written consent of the Sublessee.

b.       There are no defaults by Sublessor under the Master Lease and to the
best knowledge of Sublessor, there are no defaults by Lessor under the Master
Lease. Sublessor is not aware of any actions, proceedings, or claims by third
parties instituted or threatened against the Premises. DURING THE TERM of the
Sublease, Sublessor shall pay the Base Rent required to be paid by Lessee under
the Master Lease on or before the due date and shall perform all other
obligations not otherwise expressly delegated to Sublessee under this Sublease.
Sublessor shall commit no default under the Master Lease, which may cause Lessor
to terminate the Master Lease and this Sublease (unless such default is due to
or caused by Sublessee's default under the terms of this Sublease). IN THE EVENT
OF ANY BREACH BY SUBLESSOR OF THE MASTER LEASE, SUBLESSOR SHALL | PROMPTLY CURE
SUCH BREACH AND IN ANY EVENT SHALL INDEMNIFY SUBLESSEE AND HOLD SUBLESSEE|
HARMLESS FROM THE CONSEQUENCES OF SUCH BREACH, (UNLESS SUCH DEFAULT IS DUE TO OR
CAUSED BY| SUBLESSEE'S DEFAULT UNDER THE TERMS OF THIS SUB] |

c.       To the best of Sublessor's knowledge there are no Hazardous Substance
on, in or under the Premises. Should Sublessor, its employees or agents
introduce any Hazardous Substance into the Premises, then Sublessor shall
indemnify and hold Sublessee, its employees and lenders, harmless from and
against any and all environmental damages, including but not limited to any
remediation cost and the cost and expenses of any litigation or consultants.

d.       ALL OF THE TENANT IMPROVEMENT WORK AT THE PREMISES PERFORMED BY OR WITH
SUBLESSOR'S CONSENT PRIOR TO THE SUBLEASE COMMENCEMENT DATE COMPLIES WITH
APPLICABLE LAWS AND HAVE BEEN APPROVED BY LESSOR, AND NONE OF SUCH TENANT
IMPROVEMENT WORK NEED BE REMOVED AT THE EXPIRATION OR TERMINATION OF THE MASTER
LEASE. IN THE EVENT THAT LESSOR SHALL REQUIRE SUBLESSEE TO REMOVE ANY TENANT
IMPROVEMENT AT THE PREMISES THAT HAD BEEN PUT IN PLACE BY SUBLESSOR, THEN
SUBLESSOR SHALL PROMPTLY PROCEED TO REMOVE THE SAME AND SHALL INDEMNIFY
SUBLESSEE AND HOLD SUBLESSEE HARMLESS FOR ALL COSTS AND EXPENSES WHICH MAY BE
INCURRED BY SUBLESSEE INCURRED ANY SUCH WORK ON BEHALF OF SUBLESSOR.

[EDITORIAL NOTE FROM TO TO FAIRCHILD - WE WILL ACCEPT RESPONSIBILITY FOR
ANYTHING tHAT WE DO TO THE BUILDING. WE ARE SEEKING AGREEMENT FROM THE OWNER AS
A PART OF THE CONSENT TO SUBCONTRACT THAT THE CHANGES THAT WE HAVE PROPOSED TO
MAKE NEED NOT BE RESTORED OR REMOVED AT THE END OF THE SUBLEASE.

<PAGE>

IT IS OUR UNDERSTANDING THAT FAIRCHILD DOESN'T HAVE TO RESTORE ANY TI'S THAT YOU
MADE AT THE TERMINATION OF THE MASTER LEASE. WE DON'T INTEND TO PERFORM ANY TI'S
ON THE BUILDING OTHER THOSE IDENTIFIED IN THE 8 FEB DRAWINGS. ALL THIS SHOULD BE
CLEARLY STATED IN THE SUBLEASE]

[EDITORIAL NOTE FROM FAIRCHILD TO TCI:

WITH RESPECT TO YOUR PARAGRAPH 10(B) WE HAVE BEEN INFORMED BY THE LESSOR THAT
THERE ARE NO MORTGAGES ON THE PROPERTY.

WITH RESPECT TO YOUR PARAGRAPH 10(C), THE REPRESENTATIONS AND WARRANTIES YOU ARE
ASKING ARE INCONSISTENT WITH THE DEAL THAT YOU ARE TAKING THE PROPERTY 66AS
IS.99]

WITH RESPECT TO YOUR PARAGRAPH 10(F), WE ARE NOT ASSIGNING RENEWAL OPTIONS.

WITH RESPECT TO THE "DAMAGES" LANGUAGE AT THE END OF YOUR PARAGRAPH 10(B), WE
WILL NOT AGREE TO SUCH LANGUAGE. DAMAGES AND CLAIMS SHALL BE AS ARE AVAILABLE AT
LAW, AND WE WILL NOT AGREE TO A DIFFERENT STANDARD.]

11.      Notices

All notices and demands which may or are required or permitted to be given
hereunder shall be in writing, in the manner provide in Article 23 of the Master
Lease, sent to the following address (or to such other address as each party may
designate from time to time):

If to Sublessor: 45025 Aviation Drive, Suite 400, Dulles, VA 20166.

If to Sublessee: To the Premises.

12.      CONSENT BY LESSOR

This Sublease shall be of no force or effect unless consented to by Lessor
within ten (10) days after execution hereof, if such consent is required under
the terms of the Master Lease.

IN WITNESS WHEREOF, THE PARTIES HERETO HAVE EXECUTED THIS SUBLEASE

SUBLESSEE: TCI International, inc.

By:

Name and Title:

Date:

<PAGE>

SUBLESSOR: Fairchild Technologies USA, Inc.

By:

Name and Title:

Date:

CONSENT TO SUBLEASE

Without releasing Lessee in the Master Lease from the obligations hereunder, the
undersigned hereby consents to the foregoing Sublease provided that this consent
shall not be construed as a consent to any further subletting. Subject to such
improvements being made at Sublessee's sole expense and in compliance with all
applicable laws, codes, and ordinances, Lessor consents to Sublessee's proposed
tenant improvements as identified in the tenant improvement plans dated 8
February 2000, and such alterations shall not be subject to removal or
restoration at the termination of occupancy.

LESSOR:  Wells Capital (as successor in interest to Rose Ventures V, Inc. and
         Thomas G. Haury and Carleen S. Haury)

By:

Name and Title:

Date:

<PAGE>

                                   EXHIBIT B"
                      REPAIRS TO BE PERFORMED BY SUBLESSOR

1)       All damage to southwest comer of the Premises, including, but not
         limited to walls, windows and structural components, as well as any
         damage to landscaping and irrigation in the same general area, shall be
         repaired to the satisfaction of the Lessor and the Sublessee prior to
         the commencement of the Sublease. [EDITORIAL NOTE FROM FAIRCHILD TO
         TCI: THIS IS TENTATIVELY OK, SUBJECT TO FURTHER REVIEW OF WHAT IS
         INVOLVED. JOHN FLYNN WILL ADVISE.]

2)       The HVAC units identified as requiring maintenance or repair in
         Peninsula Air Inspection Report No. _________dated _______, which forms
         attachment 1 to this Exhibit B, shall be repaired to the satisfaction
         of the Sublessee prior to the commencement of the Sublease. [EDITORIAL
         NOTE FROM FAIRCHILD TO TCI: WHAT IS THE REPORT YOU ARE REFERRING TO? WE
         NEED TO SEE A COPY BEFORE | DISCUSSING THIS POINT FURTHER. TCI - THE
         REPORT WILL BE AVAILABLE ON | MONDAY AND WILL BE PROMPTLY FAXED TO |

3)       The cracks and potholes in the parking areas of the Premises identified
         on the drawing which forms attachment 2 to this Exhibit B shall be
         sealed or repaired to the satisfaction of the Sublessee, prior to the
         commencement of the Sublease. [EDITORIAL NOTE FROM FAIRCHILD TO TCI: WE
         NEED TO SEE THE DRAWINGS YOU ARE REFERRING TO BEFORE DISCUSSING THIS
         POINT FURTHER OK - THIS WILL| BE FAXED TO YOU ON MONDAY. THE WORK IS
         MINOR. |

4)       Sublessor shall make available to Sublessee any maintenance records and
         inspection reports that are in Sublessor's possession with respect to
         the operating systems in the Premises (such as the roof, HVAC,
         electrical, elevator, plumbing, etc.) Nothing herein shall be deemed to
         detract from Sublessee's full acceptance of the premises :AS IS, WHERE
         IS-" UNLESS SUBLESSEE NOTIFIES SUBLESSOR OF ANY SYSTEMS NOT IN GOOD
         WORKING | ORDER WITHIN 10 DAYS OF RECEIPT THEREOF, AND SUCH DEFECTS
         SHALL BE REPAIRED BY SUBLESSOR TO| THE SATISFACTION OF THE SUBLESSEE
         PRIOR THE COMMENCEMENT OF THE SUBLEASE. |

<PAGE>

Exhibit C

Furniture

5 Long wood tables
15 Office chairs
2 Desks
17 Four drawer short filing cabinets
3 Tall book cases
5 Locking cabinets
32 Wipe boards
20 Cubicles assembled
FURNITURE
         QTY      DESCRIPTION
         5        Long folding tables
         15       Office chairs
         1        Desk
         0        Round tables
         2        Wood filinja cabinets
         3        5-drawer long filin cabinets
         17       4-drawer short filing cabinets
         3        2-drawer short filin cabinets
         3        3-drawer long filinR cabinets
         3        Tall book cases
         5        Locking cabinets
         10       Manufacturing tables
         32       Wipe boards
         20       Rolling 4-shelf carts
         15       Warehouse racking shelves
         4        LARGE TOOLBOXES
         20       CUBICLES ASSEMBLED
         5        CUBICLES UNASSEMBLED
                  MISCELLANEOUS KITCHEN APPLIANCES/CABINETS

[TCI EDITORIAL NOTE - THE ABOVE LIST WAS PROVIDED TO TCI BY FAIRCHILD (Bill
Hamilton) ON 2/17 LABELLED "DESIGNATED FOR TCI". WE BELIEVE THAT THIS IS THE
CURRENT AND CORRECT LIST.]
Other Furniture:

Miscellaneous furniture in the "Storage" room located on the Southwest comer of
the first floor (identified by the hand-written number "27 in TENANT'S
SUBLESSEE'S construction plans dated February 8, 2000).

<PAGE>

                                   EXHEBIT "D"
                             EARLY OCCUPANCYSCHEDULE

For purposes of tenant improvement preparation prior to the commencement of the
Sublease, Sublessee will be given access to the Premises as follows:

1)   to the entire second floor (other than the office area presently occupied
     by Lam Le and Convac Technologies, on the Northeast comer of the second
     FLOOR, EXCEPT FOR THE ITEMS 6 & 8 ON SUBLESSEE'S CONSTRUCTION-PLANS DATED
     FEBRUARY 8, 2000, WHICH SUBLESSEE MAY PROCEED TO PERFORM ON A
     NON-INTERFERENCE BASIS) upon execution of this Lease; as to the balance of
     the second floor, beginning on May 1, 2000.

(EDITORIAL NOTE FROM TCI - LAM LE SAID THAT THIS WAS OK]
--------------------------------------------------------
2)   to all first floor areas, excepting the Convac Technology lab and storage
     space and the Sagantec office area,  beginning Monday, 6 March, 2000.

3)   to the Sagantec office area, beginning Saturday, 1 April 2000.

4)   to the Convac Technology lab and storage space, beginning May 1, 2000.

NOTWITHSTANDING SUCH DATES OF EARLY OCCUPANCY: Sublessee shall not commence any
demolition work or other work which may raise dust particles, prior to such time
as Sublessor has completed sealing off (bubble-rap) the Excluded Space.
Sublessor shall commence such sealing off (bubble-rap) process upon execution of
this Sublease.Prepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.27  

    [Oxboro Medical, Inc. Letterhead] 

October 12,
2000 

Mr. Matthew
E. Bellin 

Dear
Matthew: 

    This
letter confirms our acceptance of your resignation as President at Oxboro Medical, Inc. ("Company" or "Oxboro") effective September 18, 2000, and your employment
effective October 6, 2000. The purpose of this letter ("Agreement") is to set forth the specific benefits Oxboro will provide you in exchange for your agreement to the terms and conditions set
forth below. 

    Compensation.  We will pay you your regular biweekly paycheck of $4,615.39, subject to applicable withholding, through
December 1, 2000. 

    Insurance Benefits.  Pursuant to applicable state and federal law, you have the right to continue health and certain
other insurance coverages by paying the monthly premiums yourself. A notice detailing your rights to continue insurance coverage under COBRA will be sent to you. 

    Paid time Off (PTO).  We will pay you for your accumulated unused PTO through your last day of employment,
October 6, 2000. 

    Pension and 401(k).  You are entitled to the vesting of the Company's contributions made on your behalf to the Company's
401(k) as determined under the terms of the plan. 

    Nonqualified Stock Options.  You have the right to exercise options as set forth below: 

	a.
	Option
granted February 15, 1999 for 65,000 shares of common stock, 13,000 shares of which are vested as of October 6, 2000 and may be acquired pursuant to the terms
of your option agreement on or before April 6, 2001;

	b.
	Option
granted February 15, 1999 for 20,000 shares of common stock, 4,000 shares of which are vested and may be acquired pursuant to the terms of your option agreement on or
before January 6, 2001. 

    In
consideration for the benefits outlined above to which you may not otherwise have been entitled, you agree to the following: 

    Consulting Services.  You agree to perform general consulting services in conducting the business and affairs of the
Company upon the request of the company and as reasonable directed by the Company it its sole discretion through December 31, 2000. You will be an independent contractor, and shall not
participate in, or be eligible for any pension, 401(k), bonus, health insurance, or other fringe benefit plan provided by the Company to its employees, except in accordance with continuation of
coverage requirements under state of federal law because of your prior "employee" status with the Company. 

    Release.  You agree to release, agree not to sue, and forever discharge Oxboro, its officers, directors, agents and
employees (collectively, "Releasees") from any and all claims, actions, causes of action, administrative claims, liability, damages, claims for punitive or liquidated damages, claims for attorneys'
fees, costs and disbursements, individual or class action claims, or demands of any kind whatsoever that you may have against them. Through this release, you extinguish all claims against Releasees
through the date on which you sign this Agreement, including but not limited to, impairment of economic opportunity, contract claims, claims for intentional infliction of emotional distress,
defamation or any other tort, and all claims arising from any federal, state or municipal law or ordinance. This Release also extinguishes all potential claims of employment discrimination or any
other claims, whether known or unknown, in law or equity, contract or tort, arising out of or in 

connection with your employment with Oxboro, or the resignation of that employment, or otherwise, and however originating or existing, from the beginning of time arising from your employment with and
resignation from Oxboro specifically including all claims under the Minnesota Human Rights Act, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities, the Older Workers
Benefit Protection Act and the Age Discrimination in Employment Act. 

    You
affirm that you have not caused or permitted, and to the full extent permitted by law will not cause or permit to be filed (to the extent you are able to control such filing), any
charge, complaint, or action of any nature or type against Oxboro, and its successors and assigns, including but not limited to
any action or proceeding raising claims arising in tort or contract, or any claims arising under federal, state or local laws, including discrimination laws. 

    Consideration Period.  You have 21 days from the date you receive this Agreement to consider whether you wish to
sign it. You acknowledge that if you sign this Agreement before the end of the 21 day period, it is your voluntary decision to do so, and you waive the remainder of the 21 day period. 

    Recission.  You have the right to rescind this Agreement within 7 calendar days of signing this Agreement to reinstate
federal claims under the Age Discrimination in Employment Act and the right to rescind within 15 calendar days your release of claims in this Agreement arising under the Minnesota Human Rights Act,
Minnesota Statutes Chapter 363. In order to be effective, the rescission must 

	a.
	Be
in writing;

	b.
	Delivered
to Kenneth W. Brimmer, Oxboro Medical, Inc., 13828 Lincoln Street N.E., Ham Lake, MN 55304 by hand or mail within the required 7 or 15 day period;

	c.
	If
delivered by mail, the rescission must be postmarked within the required 7 or 15 day period, properly addressed to Kenneth W. Brimmer, and sent by certified mail,
return receipt requested. 

    This
Agreement will be effective upon the expiration of the 15-day period without recission. You understand that if you rescind this Agreement in accordance with this, you
will not receive additional consideration described herein. 

    Return of all Employer Property.  You acknowledge return of all company property, including keys, credit cards, security
access cards, codes, personal computers, cell phones, memoranda, data, records, notes and other information in your possession or under your control in any media form. 

    Proprietary Information.  By signing this Agreement, you acknowledge and agree that you have had access in your
employment with Oxboro to confidential and proprietary information of Oxboro and further acknowledge and agree that the release or disclosure of any confidential or proprietary information of Oxboro
will cause Oxboro irreparable injury. Bu signing this Agreement, you acknowledge that you have not used or disclosed, and agree that you will not at any time use or disclose, directly or indirectly to
any other entity or person, any confidential or proprietary information of Oxboro. For purposes of this Agreement, the term "confidential or proprietary information" shall include, but not be limited
to, customer lists and information pertaining to customer lists; contact lists; and information about the personal or business affairs of Oxboro's customers, vendors, or employees. 

    Confidentiality.  You also promise and agree not to disclose the contents and terms of this Agreement. You agree that
the only people with whom you may discuss this confidential information are your immediate family members, your legal and financial advisors and provided they agree to keep the information
confidential, or as otherwise required by law. Oxboro may disclose the terms of this Agreement to its partners, shareholders, officers and directors, outside auditors, and to employees or agents of it
who have a legitimate need to know the terms of the Agreement in the course of performing their duties. Other than as set forth above, the terms of the Agreement shall not be disclosed, except
pursuant to written authorization by the other party. 

    Non-disparagement.  You agree that you will not disparage or defame Oxboro in any respect or make any
negative comments concerning your employment relationship with Oxboro, the resignation thereof, or the matters contained in this Agreement. 

    Damages.  If you breach any term of this Agreement, Oxboro will be entitled to its available legal and equitable
remedies, including but not limited to suspending and recovering any and all payments made or to be made under this Agreement. If Oxboro seeks and/or obtains relief from an alleged breach of this
Agreement, all of the provisions of this Agreement shall remain in full force and effect. 

    No Admission.  This Agreement shall not in anyway be construed as an admission by Oxboro or you of ability or unlawful
conduct whatsoever. Both Oxboro and you specifically deny any liability or unlawful conduct. 

    Severability.  In the event that any provision of this Agreement is found to be illegal or unenforceable, such provision
shall be severed or modified to the extent necessary to make it enforceable, and as so severed or modified, the remainder of this Agreement shall remain in full force and effect. This Agreement shall
be governed and construed in accordance with laws in the state of Minnesota, other than its law dealing with conflicts of law. 

    Entire Agreement.  This Agreement contains the full agreement between you and Oxboro and may not be modified, altered,
or changed in any way except by written agreement signed by both parties. The parties agree that this Agreement supersedes and terminates any and all other written and oral agreements and
understandings between the parties. You are not eligible for any other payment or benefits except for those expressly described in this Agreement, provided that you sign and do not rescind this
Agreement. 

    Acknowledgment.  By signing this Agreement, you acknowledge that you have read this Agreement, including the release of
claims, and understand that the release of claims is a full and final release of
all claims you may have against Oxboro and the other entities and individuals covered by the release. By signing, you also acknowledge and agree that you have entered into this Agreement knowingly and
voluntarily. 

    Please
sign the original and copy, returning the original to me. You should keep the other copy for your records. 

Sincerely,

OXBORO
MEDICAL, INC. 

/s/ KENNETH W. BRIMMER  

Kenneth W. Brimmer
 Chief Executive Officer

    I
have read and understand and agree to the terms and conditions set forth above and have signed this Agreement dated October 12, 2000 freely, voluntarily and with full
knowledge and understanding of its meaning. 

Dated
October 12, 2000 

/s/ MATTHEW E. BELLIN  

Matthew E. Bellin 

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