Document:

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                                                       BASIC LEASE INFORMATION

                 LEASE DATE:             June 4, 1999

                 LANDLORD:               RIGGS & COMPANY, a division of Riggs
                                         Bank N.A., as trustee of the Multi-
                                         Employer Property Trust, a trust
                                         organized under 12 C.F.R. Section 9.18

                 ADDRESS OF LANDLORD:    c/o Trammell Crow Company
                                         8930 SW Gemini Drive
                                         Beaverton, Oregon 97008-7123

                 TENANT:                 Advanced Materials, Inc.
                                         a California corporation

                 PREMISES:               9400 S.W. Tualatin Sherwood Road
                                         Tualatin, Oregon 97062

PARAGRAPH 1      "Premises" approximately 14,585 square feet in Building A of
                 approximately 37,219 square feet (computed from measurements
                 to the exterior of outside walls of the building and to the
                 center of interior walls), such premises being shown and
                 outlined on the plan attached hereto as Exhibit A, and being
                 part of the real property described in Exhibit B attached
                 hereto.

PARAGRAPH 1      Lease Term: Commencing on the "Commencement Date" as
                 hereinafter defined and ending 25 months thereafter except
                 that in the event the Commencement Date is a date other
                 than the first day of a calendar month, such term shall
                 extend for said number of months in addition to the
                 remainder of the calendar month following the Commencement
                 Date.

PARAGRAPH 1      Scheduled Term Commencement Date:             August 1, 1999

PARAGRAPH 2      Monthly Base Rent:                                 $7,514.00

PARAGRAPH 2B     Security Deposit:                                  $4,041.50

PARAGRAPH 4A     Tenant's Initial Monthly Escrow Payment
                 for Taxes, Assessments and Other Charges:            $727.00

PARAGRAPH 7      Tenant's Initial Monthly Common Area
                 Maintenance Charge:                                  $999.00

PARAGRAPH 13B    Tenant's Initial Monthly Insurance
                 Escrow Payment                                        $80.00

                 Tenant's Initial Monthly Payment Total:            $9,320.00

                 The foregoing Basic Lease Information is hereby incorporated
                 into and made a part of this Lease. Each reference in this
                 Lease to any of the Basic Lease Information shall mean the
                 respective information herein above set forth and shall be
                 construed to incorporate all of the terms provided under the
                 particular Lease paragraph pertaining to such Basic Lease
                 Information. In the event of any conflict between any Basic
                 Lease Information and this Lease, the former shall control.

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                              LEASE AGREEMENT

THIS LEASE AGREEMENT, made and entered into by and between RIGGS BANK N.A.,
as trustee of the Multi-Employer Property Trust, a trust organized under 12
C.F.R. Section 9.18 hereinafter referred to as "Landlord", and Advanced
Materials, Inc., a California corporation, hereinafter referred to as
"Tenant";

                                 WITNESSETH

1.   PREMISES AND TERM.

     A.  In consideration of the obligation of Tenant to pay rent as herein
     provided, and in consideration of the other terms, provisions and
     covenants hereof, Landlord hereby demises and leases to Tenant, and
     Tenant hereby takes and leases from Landlord those certain Premises as
     outlined on Exhibit "A" attached hereto (hereinafter referred to as the
     "Premises"), together with all rights, privileges, easements,
     appurtenances, and amenities belonging to or in any way appertaining to
     the Premises and together with the buildings, sidewalks, curbs,
     driveways, and other improvements situated or to be situated upon land
     described in Exhibit B attached hereto (the "Project").

     B.  TO HAVE AND TO HOLD the same for a term commencing on the
     "Commencement Date", as hereinafter defined, and ending thereafter as
     specified in the Basic Lease Information (the "Lease Term"); provided,
     however, that, in the event the "Commencement Date" is a date other than
     the first day of a calendar month, such term shall extend for the
     number of months in addition to the remainder of the calendar month
     following the "Commencement Date".

     C.  The "Commencement Date" shall be the earlier of: (i) the Scheduled
     Term Commencement Date shown in the Basic Lease Information, or (ii) the
     date upon which the Premises shall have been substantially completed in
     accordance with the plans and specifications described in Exhibit "C"
     attached hereto. If the Premises shall not have been substantially
     completed by the Scheduled Term Commencement Date and the delay in
     substantially completing the Premises is not caused in whole or in part
     by any act or omission of Tenant, or Tenant's agents, employees,
     contractors or subcontractors, Tenant's obligations to pay rent under
     this Lease shall commence on the date the Premises are substantially
     completed. In no event shall Landlord be liable to Tenant for any loss or
     damage resulting from any delay for any reason whatsoever in the
     substantial completion of the Premises. Landlord shall notify Tenant in
     writing as soon as Landlord deems the Premises to be substantially
     completed and ready for occupancy. If Tenant believes that the Premises
     have not in fact been substantially completed, Tenant shall notify
     Landlord in writing of Tenant's objections within three (3) days of
     Landlord's notice to Tenant that the Premises are substantially
     complete. Landlord shall have a reasonable time after delivery of such
     notice in which to take such corrective action as Landlord, in its sole
     discretion, seems appropriate, and shall notify Tenant in writing as
     soon as Landlord deems that such corrective action has been completed so
     that the Premises are substantially completed and ready for occupancy.
     In the event of any dispute as to the substantial completion of work
     required to be performed by Landlord, the certificate of Landlord's
     architect or general contractor shall be conclusive. The taking of
     possession by Tenant of any portion of the Premises for any reason shall
     be deemed conclusively to establish that the Premises have been
     substantially completed in accordance with the plans and specifications
     and that the Premises are in good and satisfactory condition as of when
     possession was so taken. Tenant acknowledges that no representations as
     to the condition or repair of the Premises have been made by Landlord,
     unless such are expressly set forth in this Lease. After the
     Commencement Date, Tenant shall, upon demand, execute and deliver to
     Landlord a letter of acceptance of delivery of the Premises, specifying
     the Commencement Date.

2.   BASE RENT AND SECURITY DEPOSIT:

     A.  Tenant agrees to pay to Landlord Monthly Base Rent for the Premises,
     in advance, without demand, deduction, or set off, for the entire Lease
     Term at the rate specified in the Basic Lease Information, and Addendum
     A payable in monthly installments. The first monthly installment shall

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     be due and payable on the date hereof and thereafter monthly
     installments of Monthly Base Rent shall be due and payable on the first
     day of each calendar month succeeding the Commencement Date during the
     Lease Term, except that the payment of Monthly Base Rent for any
     fractional calendar month at the commencement or end of this Lease shall
     be prorated on the basis of a 30-day month.

     B.  In addition, Tenant agrees to deposit with Landlord on the date
     hereof a security deposit in the amount specified in the Basic Lease
     Information, which sum shall be held by Landlord, without obligation for
     interest, as security for the performance of Tenant's covenants and
     obligations under this Lease, it being expressly understood and agreed
     that such deposit is not an advance rental deposit, not the last month's
     rent and not a measure of Landlord's damages in the event of Tenant's
     default. Upon the occurrence of any default by Tenant under this Lease,
     Landlord may, from time to time, without prejudice to any other remedy
     provided herein or provided by law, use such deposit to the extent
     necessary to make good any arrears of rent or other payment due Landlord
     hereunder, and any other damage, injury, expense or liability caused by
     such event of default; or to perform any obligation required of Tenant
     under this Lease; and Tenant shall pay to Landlord on demand the amount
     so applied in order to restore the security deposit to its original
     amount. Although the security deposit shall be deemed the property of
     Landlord, any remaining balance of such deposit shall be returned by
     Landlord to Tenant within thirty (30) days of the date following the
     termination of this Lease that all of Tenant's obligations under this
     Lease have been fulfilled. Tenant may not mortgage, assign, transfer or
     encumber the Security Deposit and any such act on the part of Tenant
     shall be without force or effect. In the event any bankruptcy,
     insolvency, reorganization or other creditor-debtor proceedings shall be
     instituted by or against Tenant, the Security Deposit shall be deemed to
     be applied first to the payment of Monthly Base Rent, Additional Rent
     and all other sums payable under this Lease to Landlord for all periods
     prior to the institution of such proceedings and the balance, if any,
     may be retained by Landlord and applied against Landlord's damages.

3.   USE.  The Premises shall be used only for THE PURPOSE OF GENERAL OFFICE,
     RECEIVING, STORAGE, SHIPPING, ASSEMBLY, LIGHT MANUFACTURING, AND SELLING
     (OTHER THAN RETAIL) PRODUCTS, MATERIALS AND MERCHANDISE MADE AND/OR
     DISTRIBUTED BY TENANT AND FOR SUCH OTHER LAWFUL PURPOSES AS MAY BE
     INCIDENTAL THERETO and for no other purpose whatsoever without Landlord's
     prior written consent. Outside storage, including, without limitation,
     trucks and other vehicles, is prohibited without Landlord's prior
     written consent. Tenant shall at its own cost and expense obtain and
     maintain any and all licenses, permits, and other approval necessary or
     appropriate for its use, occupation or operation of the Premises.
     Tenant's inability to obtain or maintain any such license, permit or
     approval necessary or appropriate for its use, occupation or operation
     of the Premises shall not relieve it of its obligations under this
     Lease, including the obligation to pay Base Rent and additional rent.
     Tenant shall comply with all governmental laws, ordinances, rules and
     regulations applicable to the use and condition of the Premises, and
     shall promptly comply with all governmental orders and directives
     including, but not limited to, those regarding the correction,
     prevention and abatement of nuisances in or upon, or connected with, the
     Premises, all at Tenant's sole expense. Without limiting the generality
     of the foregoing, Tenant shall comply with the requirements of the
     Americans with Disabilities Act and all other laws, regulations, orders,
     codes, ordinances and governmental laws pertaining to the Premises and
     Tenant's use thereof at Tenant's sole cost and expense. Tenant shall not
     commit or allow to be committed or exist: (a) any waste upon the
     Premises, (b) any public or private nuisance, (c) any objectionable or
     unpleasant odors, smoke, dust, gas, noise or vibrations to emanate from
     the Premises, or (d) any act or condition which disturbs the quiet
     enjoyment of any other tenant in the Building, violates any of
     Landlord's contracts affecting any or all of the land or Building,
     creates or contributes to any work stoppage, strike, picketing, labor
     disruption or dispute, interferes in any way with the business of
     Landlord or any other tenant in the Building or with the rights or
     privileges of any contractors, subcontractors, licensees, agents,
     concessionaires, subtenants, servants, employees, customers, guests,
     invitees or visitors or any other persons lawfully in and upon the land
     or Building, or causes any impairment or reduction of the good will or
     reputation of the land or Building. In addition to any other remedies
     Landlord may have for a breach by Tenant of the terms of this Paragraph
     3, Landlord shall have the right to have Tenant evicted from the
     Premises. Without Landlord's prior written consent, Tenant shall not
     receive, store or otherwise handle any product, material or merchandise
     which is explosive, highly inflammable, hazardous or a pollutant.
     Tenant will not permit the Premises to be used for any purpose or in any
     manner (including, without limitation, any method of storage) which
     would render the insurance thereon void or the insurance risk more
     hazardous or cause the State Board of Insurance or other insurance
     authority to disallow any sprinkler credits. In the event Tenant's use of

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     Premises shall result in an increase in insurance premiums, Tenant shall
     be solely responsible for such increase.

4.   TAXES AND OTHER CHARGES.

     A.  Tenant agrees to pay its proportionate share of any and all real and
     personal property taxes, regular and special assessments (including, but
     not limited to, local improvement district assessments to finance the
     costs of streets, sewers, traffic lights and other utilities), license
     fees and other charges of any kind and nature whatsoever, payable as a
     result of any public or quasi-public authority, private party, or
     owner's association levy, assessment or imposition against, or arising
     out of Landlord's ownership of or interest in, the Project, together
     with the building and the grounds, parking areas, driveways, roads, and
     alleys around the building in which the Premises are located, or any
     part thereof (hereinafter collectively referred to as the "Charges").
     During each month of the Lease Term, Tenant shall make a monthly escrow
     deposit with Landlord (the "Escrow Payment") equal to 1/12 of its
     proportionate share of the Charges which Landlord estimates will be due
     and payable for that particular calendar year. Tenant authorizes
     Landlord to use the funds deposited by Tenant with Landlord under this
     Paragraph 4 to pay the Charges. Each Escrow Payment shall be due and
     payable, as additional rent, at the same time and in the same manner as
     the payment of Monthly Base Rent as provided herein. The amount of the
     initial monthly Escrow Payment will be specified in the Base Lease
     Information. The initial Escrow Payment is based upon Tenant's
     proportionate share of the estimated Charges for the year in question,
     and the monthly Escrow Payment is subject to increase or decrease as
     determined by Landlord to reflect an accurate escrow of Tenant's
     estimated proportionate share of the Charges. The Escrow Payment account
     of Tenant shall be reconciled annually. If the Tenant's total Escrow
     Payments are less than Tenant's actual proportionate share of the
     Charges, Tenant shall pay to Landlord upon demand the difference; if the
     Tenant's total Escrow Payments are more than Tenant's actual
     proportionate share of the Charges, Landlord shall retain such excess
     and credit it to Tenant's Escrow Payment account for the successive
     year's Charges. Tenant's proportionate share of the Charges shall be
     computed by multiplying the Charges by a fraction, the numerator of
     which shall be the number of gross leasable square feet of floor space
     in the Premises and the denominator of which shall be the total
     applicable gross leasable square footage or such other equitable
     apportionment as Landlord may adopt.

     B.  If Tenant should fail to pay any Escrow Payments, taxes,
     assessments, licensee fees or other charges required to be paid by
     Tenant hereunder, in addition to any other remedies provided herein,
     Landlord may, if it so elects, pay such Escrow Payments or taxes,
     assessments, license fees and other charges. Any sums so paid by
     Landlord shall be deemed to be additional rental owing by Tenant to
     Landlord and due and payable upon demand as additional rental together
     with interest at the rate of eighteen percent (18%) per annum from the
     date of payment by Landlord until repaid by Tenant.

     C.  (1)  If at any time during the Lease Term, the present method of
     taxation shall be changed so that in lieu of the whole or any part of
     any taxes, assessments, fees or charges levied, assessed or imposed on
     real estate and the improvements thereon, there shall be levied,
     assessed or imposed on Landlord a capital levy or other tax directly on
     the rents received therefrom and/or a franchise tax, assessment, levy or
     charge measured by or based, in whole or in part, upon such rents or the
     present or any future building or buildings, then all such taxes,
     assessments, fees or charges, or the part thereof so measured or based,
     shall be deemed to be included within the term "Charges" for the
     purposes of this Lease.

         (2)  Tenant may, at its sole cost and expense, in its own name,
     dispute and contest any Charges by appropriate proceedings diligently
     conducted in good faith, but only after Tenant in such contest has
     deposited with Landlord the amount so contested and unpaid, which shall
     be held by Landlord without obligation for interest until the
     termination of the proceedings, at which time the amount(s) deposited
     shall be applied by Landlord toward the payment of the items held valid
     (plus any court costs, interest, penalties and other liabilities
     associated with the proceedings), and Tenant's share of any excess shall
     be returned to Tenant. Tenant further agrees to pay to Landlord upon
     demand all court costs, interest, penalties and other liabilities
     relating to such proceedings. Tenant agrees to indemnity, protect,
     defend and hold harmless the Indemnified Parties (as defined below) from
     and against any claims, liabilities, costs, damages or expenses
     (including attorneys' fees) in connection with any such proceedings.

         (3)  Any payment to be made pursuant to this Paragraph 4 with
     respect to the calendar year in which this Lease commences or terminates
     shall bear the same ratio to the

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     payment which would be required to be made for the full calendar year as
     that part of such calendar year covered by the Lease Term bears to a
     full calendar year.

     D.  Tenant shall be liable for all taxes levied against personal
     property and trade fixtures placed by Tenant in the Premises. If any
     such taxes are levied against Landlord or Landlord's property and if
     Landlord elects to pay the same or if the assessed value of Landlord's
     property is increased by inclusion of personal property and trade
     fixtures placed by Tenant in the Premises and Landlord elects to pay
     the taxes based on such increase, Tenant shall pay to Landlord upon
     demand that part of such taxes for which Tenant is primarily liable
     hereunder.

5.   TENANT'S MAINTENANCE.

     A.  Tenant shall at its own cost and expense keep and maintain all parts
     of the Premises (except those for which Landlord is expressly
     responsible under the terms of this Lease) in good condition, promptly
     making all necessary or prudent repairs and replacements, including, but
     not limited to, windows, glass and plate glass, doors, any special
     office entry, interior walls and finish work, floor and floor covering,
     downspouts, gutters, heating and air conditioning systems, dock boards,
     truck doors, dock bumpers, paving, and plumbing work and fixtures.
     Tenant shall also perform termite and pest extermination, regularly
     remove trash and debris, keep the parking areas, driveways, alleys and
     the whole of the Premises in a clean and sanitary condition, replace
     light fixtures and bulbs and, in all other respects, maintain the
     Premises in good working order and condition. Tenant shall repair all
     wind damage to glass.

     B.  Tenant shall not damage any wall or disturb the integrity and
     support provided by any wall and shall, at its sole cost and expense,
     promptly repair any damage or injury to any wall caused by Tenant or its
     employees, agents, licensees or invitees.

     C.  Tenant and its employees, agents, licensees and invitees shall have
     the right to use the parking areas, if any, as may be designated by
     Landlord in writing, subject to such reasonable rules and regulations as
     Landlord may from time to time prescribe and subject to rights of
     ingress and egress of other tenants. Landlord shall not be responsible
     for enforcing any exclusive parking rights granted to against any third
     parties. If Tenant can be clearly identified as being responsible for
     obstructions or stoppage of a common sanitary sewage line, then Tenant
     shall pay the cost of repairing such sewage line, upon demand as
     additional rent.

     D.  Tenant shall, at its own cost and expense, enter into a regularly
     scheduled preventive maintenance/service contract with a maintenance
     contractor for servicing all heating and air conditioning systems and
     equipment within the Premises.

     E.  If Tenant fails to maintain or repair the Premises in accordance
     with this paragraph, then Landlord may, but shall not be required to,
     enter the Premises upon two (2) business days prior written notice to
     Tenant (or immediately without any notice in the case of an emergency)
     to perform such maintenance or repair at Tenant's sole cost and expense.
     Tenant shall pay to Landlord the cost of such maintenance or repair plus
     a fifteen percent (15%) administration fee within ten (10) business days
     of written demand from Landlord.

6.   LANDLORD'S REPAIRS.  After written notice from Tenant, Landlord shall
     use commercially reasonable efforts to make such repairs to the roof,
     exterior walls and foundations as Landlord deems necessary, and Tenant
     shall pay its proportionate share of the costs of such repairs as
     provided in Paragraph 7. Tenant shall repair and pay for any damage to
     such items to be maintained by Landlord caused by any act, omission or
     negligence of Tenant, or Tenant's employees, agents, licensees or
     invitees, or caused by Tenant's default hereunder. The term "walls" as
     used herein shall not include windows, glass or plate glass, doors,
     special store fronts or office entries. Tenant shall immediately give
     Landlord written notice of any defect or any need for repairs, after
     which Landlord shall have a reasonable opportunity and time to repair
     same or cure such defect. Landlord's liability with respect to any
     defects, repairs or maintenance for which Landlord is responsible under
     any of the provisions of this Lease shall be limited solely to the cost
     of such repairs or maintenance or the curing of such defect. In no event
     will Landlord be responsible for paying incidental or consequential
     damages resulting from Landlord's failure to cure such defects.

7.   MONTHLY COMMON AREA MAINTENANCE CHARGE.  Tenant agrees to pay, as an
     additional charge each month, its proportionate share of the cost of the
     operation, maintenance, improvement, repair and replacement of the
     "Common Area", which shall be defined from time to time by Landlord. The
     term Common Area may include any property not owned by Landlord which is
     located beyond the boundaries of the Project to the extent

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     Landlord is obliged to pay certain costs of operation and maintenance or
     to contribute to the cost of operation and maintenance. Common Area
     costs which may be incurred by Landlord at its discretion, may include,
     but shall not be limited to those costs incurred for lighting, water,
     sewage, trash removal, exterior painting, exterior window cleaning,
     sweeping, management, accounting, policing, inspecting, sewer lines,
     plumbing, paving, landscape maintenance, plant material replacement and
     other like charges, and Landlord's fee for supervision and
     administration of the items set forth in this Paragraph, currently at
     10%. The proportionate share to be paid by Tenant of the cost of
     operation, maintenance, improvement, repair and replacement of the
     Common Area shall be computed on the ratio that the gross leasable
     square footage of the Premises bears to the total applicable gross
     leasable square footage or such other equitable apportionment as
     Landlord may adopt. Landlord shall make monthly or other periodic
     charges based upon the estimated annual cost of operation and
     maintenance of the Common Area, payable in advance but subject to
     adjustment after the end of the year on the basis of the actual cost for
     such year. Any such periodic charges shall be due and payable upon
     delivery of notice thereof. The initial Common Area Maintenance Charge,
     subject to adjustment as provided herein, shall be due and payable, as
     additional rent, at the same time and in the same manner as the time and
     manner of the payment of Monthly Base Rent as provided herein. The
     amount of the initial monthly Common Area Maintenance Charge shall be as
     specified in the Basic Lease Information.

8.   ALTERATIONS.  Tenant shall not make any alterations, additions or
     improvements to the Premises (including, but not limited to, roof and
     wall penetrations or alterations, additions or improvements affecting
     building, mechanical or electrical systems or equipment) without the
     prior written consent of Landlord, which consent may be withheld in its
     sole discretion or may be conditioned on, among other things, proof of
     insurance coverage, payment and performance bonds, in forms, amounts
     and by companies acceptable to Landlord, and Landlord's review of
     Tenant's plans and specifications, Tenant's contractor and Tenant's
     building permit. Tenant may, without the consent of Landlord, but at its
     own cost and expense and in a good workmanlike manner erect such
     shelves, bins, machinery and trade fixtures as it may deem advisable,
     without altering the basic character of the building or improvements and
     without overloading or damaging such building or improvements, and in
     each case complying with all applicable governmental laws, ordinances,
     regulations and other requirements. All alterations, additions,
     improvements and partitions erected by Tenant shall be and remain the
     property of Tenant during the Term of this Lease and Tenant shall,
     unless Landlord otherwise elects as hereinafter provided, remove all
     alterations, additions, improvements and partitions erected by Tenant
     and restore the Premises to their original condition by the date of
     termination of this Lease or upon earlier vacating of the Premises;
     provided, however, that if Landlord so elects prior to termination of this
     Lease or upon earlier vacating of the Premises, such alterations,
     additions, improvements and partitions shall become the property of
     Landlord as of the date of termination of this Lease or upon earlier
     vacating of the Premises and shall be delivered up to the Landlord with
     the Premises. All shelves, bins, machinery and trade fixtures installed by
     Tenant may be removed by Tenant prior to the termination of this Lease if
     Tenant so elects, and shall be removed by the date of termination of this
     Lease or upon earlier vacating of the Premises if required by Landlord;
     upon any such removal Tenant shall restore the Premises to their original
     condition. All such removals and restoration shall be accomplished in good
     workmanlike manner so as not to damage the buildings and other
     improvements situated on the Premises. Landlord shall have the right at
     any time and from time to time to make changes or alterations to any
     portion of the Project other than the Premises and Landlord shall not be
     subject to any liability with respect to such alterations.

9.   SIGNS.  Tenant shall not install signs upon the Premises without
     Landlord's prior written approval, and any such signage shall be subject
     to any applicable governmental laws, ordinances, regulations and other
     requirements. Tenant shall remove all such signs by the expiration or
     sooner termination of this Lease. Such installations and removals shall
     be made in such a manner as to avoid injury or defacement of the
     building and other improvements, and Tenant shall repair any injury or
     defacement, including, without limitation, discoloration, caused by such
     installation and/or removal.

10.  INSPECTION/SURRENDER OF POSSESSION.

     A.  Landlord and Landlord's agents and representatives shall have the
     right to enter and inspect the Premises at any reasonable time during
     business hours, for the purpose of ascertaining the condition of the
     Premises or in order to make such repairs as may be required or permitted
     to be made by Landlord under the terms of this Lease or for any other
     lawful purpose. During the period that is six (6) months prior to the end
     of the Term hereof,

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     Landlord and Landlord's agents and representatives shall have the right
     to enter the Premises at any reasonable time during business hours for
     the purpose of showing the Premises and shall have the right to erect on
     the Premises a suitable sign indicating the Premises are available.

     B.   Tenant shall, at the expiration  or earlier termination of this
     Lease, surrender and deliver the Premises to Landlord in as good
     condition as when received by Tenant from Landlord or as later improved,
     reasonable use and wear excepted.

     C.   Tenant shall give written notice to Landlord at least thirty (30)
     days prior to vacating the Premises and shall arrange to meet with
     Landlord for a joint inspection of the Premises  prior to vacating. In
     the event of Tenants's failure to give such notice or arrange such joint
     inspection, Landlord's inspection at or after Tenant's vacating the
     Premises shall be conclusively deemed correct for purposes of
     determining Tenant's responsibility for restoring the Premises to the
     condition required hereunder.

11.  UTILITIES.  Landlord agrees to provide at its cost water, electricity
     and gas service connections into the Premises; but Tenant shall pay for
     all water, gas, heat, light, power, telephone, sewer, sprinkler charges
     and other utilities and services used on or from the Premises, together
     with any taxes, penalties, surcharges or the like pertaining thereto and
     any maintenance charges for utilities and shall furnish all electric
     light bulbs and tubes. If any such services are not separately metered
     to Tenant, Tenant shall pay a reasonable proportion as determinded by
     Landlord of all charges jointly metered with other Premises. Landlord
     shall not be liable for any loss, injury, damage to property, or other
     consequences caused by or resulting from any variation, interruption, or
     failure of utilities ore services in the Building due to any cause
     whatsoever. However, in the event of such variation, interruption or
     failure, Landlord shall use reasonable diligence to restore such service
     to a normal operating condition. No temporary interruption, variance, or
     failure of such services incident to the making or repairs, strike,
     extreme weather conditions, or the conditions or events beyond
     Landlord's reasonable control shall be deemed an eviction of Tenant or
     relieve Tenant from any of Tenant's obligations hereunder.

12.  ASSIGNMENT AND SUBLETTING.

     A.  Tenant shall not have the right, voluntarily or involuntarily, to
     assign, convey, transfer, mortgage or sublet the whole or any part of
     the Premises under this Lease without the prior written consent of
     Landlord. If Tenant is a partnership, corporation or limited liability
     company, the transfer, assignment, sale or other change in ownership
     interest in excess of 33% (in the aggregate) shall be deemed an
     assignment within the meaning of this Paragraph. In the event Tenant
     applies to Landlord for consent to assign, convey, transfer or sublet
     the Premises, Landlord may condition such consent on, among other
     things, the right to receive one-half of the profit, if any, which
     Tenant may realize on account of such assignment, conveyance, transfer
     or sublease of the Premises or any other condition. For purposes of this
     paragraph, "profit" shall mean any sum which the assignee, sublessee or
     transferee is required to pay, or which is credited to Tenant as rent in
     excess of the rents required to be paid by Tenant to Landlord under this
     Lease. Landlord also reserves the right to recapture the Premises or
     applicable portion thereof in lieu of responding to Tenant's transfer
     request by notice of Landlord's exercise of its recapture right given to
     Tenant within twenty (20) days after receipt of Tenant's written
     request for assignment or subletting. Such recapture shall terminate
     this Lease as to the applicable space effective on the prospective date
     of assignment or subletting, which shall be the last day of a calendar
     month and not earlier than sixty (60) days after receipt of Tenant's
     request hereunder. Nothing contained in this Lease shall prohibit
     Landlord from entering into a new lease with Tenant's proposed assignee
     or sublessee. In the event that Landlord shall not elect to recapture
     the Premises or the applicable portion thereof, Tenant shall pay
     Landlord a reasonable fee, not to exceed $500.00, to reimburse Landlord
     for processing costs incurred in connection with considering whether to
     consent to Tenant's sublease or assignment request, and shall also
     reimburse Landlord for Landlord's reasonable attorneys' fees.

     B.  Notwithstanding any permitted assignment or subletting, Tenant shall
     at all times remain directly, primarily and fully responsible and liable
     for the payment of the rent and all other charges under this Lease and
     for compliance with all of its other obligations under the terms,
     provisions and covenants of this Lease. Upon the occurrence of an "event
     of default" as hereinafter defined, if the Premises or any part thereof
     are then assigned or sublet, Landlord, in addition to any other remedies
     herein provided, or provided by law, may at its option collect directly
     from such assignee or subtenant all rents becoming due to Tenant under
     such assignment, transfer or sublease and apply such rent against any
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     Landlord from Tenant hereunder, and no such collection shall be
     construed to constitute a novation or a release of Tenant from the
     further performance of Tenant's obligations here under.

13.  INSURANCE, FIRE AND CASUALTY DAMAGE.

     A.  Landlord shall maintain casualty insurance covering the building of
     which the Premises are a part in an amount equal to the "replacement
     cost" thereof, insuring against the perils covered by the extended
     coverage policy and any other perils elected to be covered by the
     Landlord. Coverages and endorsements shall be as selected by the Landlord
     and such insurance shall be for the sole benefit of Landlord and all
     insurance proceeds shall remain under its sole control. Such insurance
     may be effectuated, in whole or in part, by a blanket policy covering
     the building in which the Premises are located and other buildings. In
     the event the insurance policy is subject to a deductible, Tenant shall
     be liable for and shall pay all or its proportionate share, as
     appropriate, of any deductible withheld from insurance proceeds or
     payables under the terms of the insurance policy procured by Landlord in
     the event of a claim or insured loss with respect to the building in
     which the Premises are located. Landlord may, in its discretion, require
     that Tenant, at its sole cost and expense, maintain on all of its
     personal property, tenant improvements and alterations in, or on about
     the Premises a policy of casualty insurance to the extent of the full
     replacement value without any deduction for depreciation.

     B.  Tenant shall pay its proportionate share of Landlord's costs of
     procuring and maintaining: (i) the insurance coverage described in
     Subparagraph 13A, (ii) liability insurance with respect to the Project
     and the operations thereon, and (iii) any other insurance coverage
     procured by Landlord and pertaining or relating to the Premises in any
     way. In the event any insurance coverage is on a blanket basis, the
     premium shall be equitably apportioned to the buildings and improvements
     located within the Project before determining Tenant's proportionate
     share. During each month of the term of this Lease, Tenant shall make a
     monthly escrow deposit with Landlord (the "Insurance Escrow Payment")
     equal to one-twelfth of its proportionate share of Landlord's cost of
     procuring and maintaining the insurance described in Subparagraphs 13A
     and 13B which will be due and payable for that particular year. Tenant
     authorizes Landlord to use the funds deposited by Tenant with Landlord
     under this paragraph to pay the cost of such insurance. Each Insurance
     Escrow Payment shall be due and payable, as additional rent, at the same
     time and manner of the payment of the Monthly Base Rent as provided
     herein. The initial monthly Insurance Escrow Payment is subject to
     increase or decrease as determined by Landlord to reflect an accurate
     monthly escrow of Tenant's estimated proportionate share of this
     insurance. The Insurance Escrow Payment account of Tenant shall be
     reconciled annually. If the Tenant's total Insurance Escrow Payments are
     less than Tenant's actual proportionate responsibility for such
     insurance, Tenant shall pay to Landlord upon demand the difference; if the
     total Insurance Escrow Payments of Tenant are more than Tenant's actual
     proportionate responsibility for such insurance, Landlord shall retain
     such excess and credit it to the next monthly payment payable by Tenant
     or if this Lease has expired, refund such excess to Tenant. Tenant's
     cost of insurance shall be computed by multiplying the cost of Insurance
     by a fraction, the numerator of which shall be the number of gross
     leasable square feet of floor space in the Premises and the denominator
     of which shall be the total applicable gross leasable square footage.
     The amount of the initial monthly Insurance Escrow Payment will be as
     specified in the Basic Lease Information.

     C.  Tenant shall, throughout the Lease Term, at its own expense, procure
     and maintain in full force and effect: (a) A policy of comprehensive
     general liability insurance, including a contractual liability
     endorsement covering Tenant's obligations under the paragraph captioned
     "Indemnification", insuring against claims of bodily injury and death
     or property damage or loss with a combined single limit at the
     Commencement Date of this Lease of not less than Three Million Dollars
     ($3,000,000.00), which limit shall be reasonably increased during the
     Lease Term at Landlord's request to reflect both increases in liability
     exposure arising from inflation as well as from changing use of the
     Premises or changing legal liability standards, which policy shall be
     payable on an "occurrence" rather than a "claim made" basis, and which
     policy names Landlord and manager and, at Landlord's request Landlord's
     mortgage lender(s) or investment advisors, as additional insureds;
     (b) A policy of extended property insurance (which is commonly called
     "at risk") covering Tenant Improvements, Tenant Alterations, and any
     and all furniture, fixtures, equipment, inventory, improvements and
     other property in or about the Premises which is not owned by Landlord,
     for one hundred percent (100%) of the then current replacement value of
     such property; and (c) Business interruption insurance in an amount
     sufficient to cover costs, damages, lost income, expenses, Base Rent,
     additional

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     rent and all other sums payable under this Lease, should any or all of
     the Premises not be usable for a period of up to twelve (12) months. All
     insurance policies required under this paragraph shall be with companies
     reasonably approved by Landlord authorized to do business in the State
     of Oregon and each policy shall provide that it is not subject to
     cancellation or reduction in coverage except after thirty (30) days'
     written notice to Landlord. Tenant shall deliver to Landlord and, at
     Landlord's request Landlord's mortgage lender(s), prior to the
     Commencement Date and from time to time thereafter, certificates
     evidencing the existence and amounts of all such policies. If Tenant fails
     to acquire or maintain any insurance or provide any certificate required
     by this paragraph, Landlord may, but shall not be required to, obtain such
     insurance or certificates and the costs associated with obtaining such
     insurance or certificates shall be payable by Tenant to Landlord on
     demand. Such policies shall be primary insurance (and not "excess over"
     or contributory with any other valid, existing and applicable insurance
     in force for or on behalf of Landlord) and such policies shall not
     eliminate cross-liability and shall contain a severability of interest
     clause. Certified copies of such policies, together with receipt
     evidencing payment of premiums therefor, shall be delivered to Landlord
     prior to the commencement date of this Lease. Not less than fifteen (15)
     days prior to the expiration date of any such policies, certified copies
     of the renewals thereof (bearing notations evidencing the payment of
     renewal premiums) shall be delivered to Landlord.

     D.  If the building of which the Premises are a part should be damaged
     or destroyed by fire, tornado or other casualty, Tenant shall give
     immediate written notice thereof to Landlord.

     E.  If the building of which the Premises are a part should be totally
     destroyed by fire, tornado or other casualty, or if it should be so
     damaged thereby that rebuilding or repairs cannot in Landlord's
     estimation be completed within two hundred (200) days after the date
     upon which Landlord is notified by Tenant of such damage, this Lease
     shall, at the option of Landlord, terminate and the rent shall be abated
     during the unexpired portion of this Lease, effective upon the date of
     the occurrence of such damage. Landlord shall give notice to Tenant in
     writing of its determination to terminate this Lease within ninety (90)
     days following the date of the occurrence of such damage.

     F.  If the building of which the Premises are a part should be damaged
     only to such extent that rebuilding or repairs can in Landlord's
     estimation be completed within two hundred (200) days after the date
     upon which Landlord is notified by tenant of such damage, this Lease
     shall not terminate, and Landlord shall at its sole cost and expense
     (but only to the extent of insurance proceeds received by Landlord)
     thereupon proceed with reasonable diligence to rebuild and repair such
     building to substantially the condition in which it existed prior to
     such damage, except that Landlord shall not be required to rebuild,
     repair or replace any part of the partition, fixtures, additions, and
     other improvements which may have been placed in, or about the Premises
     by Tenant. If the Premises are untenantable in whole or in part
     following such damage, the rent payable hereunder during the period in
     which they are untenantable shall be reduced to such extent the Premises
     are unusable.

     G.  Notwithstanding anything herein to the contrary, in the event the
     holder of any indebtedness secured by a mortgage or deed of trust
     covering the Premises requires that the insurance proceeds be applied to
     such indebtedness, the Landlord shall have the right to terminate this
     Lease by delivering written notice of termination to Tenant within
     fifteen (15) days after such requirement is made by any such holder,
     whereupon all rights and obligations hereunder shall cease and
     terminate, except that Tenant shall remain liable to Landlord for the
     payment of any rents or other charges already accrued.

     H.  Each of Landlord and Tenant hereby releases the other from any loss
     or damage to property caused by fire or any other perils insured through
     or under them by way of subrogation or otherwise for any loss or damage
     to property caused by fire or any other perils insured in policies of
     insurance covering such property, even if such loss or damage shall have
     been caused by the fault or negligence of the other party, or anyone for
     whom such party may be responsible; provided, however, that this release
     shall be applicable and in force and effect only with respect to loss or
     damage occurring during such times as the releaser's policies shall
     contain a clause or endorsement to the effect that any such release
     shall not adversely affect or impair said policies or prejudice the
     right of the releaser to recover there under and then only to the extent
     of the insurance proceeds payable under such policies. Each of the
     Landlord and Tenant agrees that it will request its insurance carriers
     to include in its policies such a clause or endorsement. If extra cost
     shall be charged therefor, each party shall advise the other thereof and
     of the amount of the extra cost, and the other party, at its election,
     may pay the same, but shall not be obligated to do so.

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14.  LIABILITY.  Landlord shall not be liable to Tenant or Tenant's
     employees, agents, servants, guests, invitees, incensees, or
     visitors, or to any other person whomsoever, for any injury to person or
     damage to property on or about the Premises, resulting from and/or
     caused in part or whole by the act, omission, negligence or misconduct
     of Tenant, its employees, agents, servants, guests, invitees, licenses,
     or visitors, or of any other person entering upon the Premises, or
     caused by the building and improvements located on the premises becoming
     out of repair, or caused by leakage of gas, oil, water or steam or by
     electricity emanating from the Premises, or due to any cause whatsoever,
     and Tenant hereby covenants and agrees that it will at all times
     indemnify, protect, defend and hold safe and harmless the property, the
     Landlord (including, without limitation, the trustee and beneficiaries
     if Landlord is a trust), Landlord's employees, agents, servants, guests,
     invitees, licensees and visitors (collectively, the "indemnified
     parties") from any loss, liability, claims, suits, costs, expenses,
     including, without limitation, attorneys' fees, and damages, both real
     and alleged, arising out of: (a) the use or occupancy of the Premises,
     (b) any failure of Tenant to comply with the terms of this Lease, and
     (c) the acts of omissions or Tenant and its employees, agents, servants,
     guests, invitees, licensees and visitors; except injury to person or
     damage to property the sale cause of which is the gross negligence of
     Landlord. In no event shall the Indemnified Parties be liable for
     consequential damages. If and to the extent that Tenant is obligated to
     indemnify, defend or hold harmless Landlord and Landlord's agents from any
     claims arising from its use of the Premises or any act or failure to act
     by Tenant or Tenant's Agents or otherwise, Tenant expressly waives, to and
     in favor of Landlord and Landlord's agents, its statutory
     workers compensation act employers immunity relative to any injury to an
     employee or employees of Tenant.

15.  CONDEMNATION.

     A.  If the whole or any substantial part of the Premises should be taken
     for any public or quasi-public use under governmental law, ordinance or
     regulation, or by right of eminent domain, or by private purchase in
     lieu thereof and the taking would prevent or materially interfere with
     the use of the Premises for the purpose for which they are being used as
     determined by Landlord, this Lease shall terminate and the rent shall be
     abated during the unexpired portion of this Lease, effective when the
     physical taking of said Premises shall occur.

     B.  If part of the premises shall be taken for any public or
     quasi-public use under any governmental law, ordinance or regulation, or
     by right of eminent domain, or by private purchase in lieu thereof, and
     this Lease is not terminated as provided in Subparagraph 15(A), this
     Lease shall not terminate but the rent payable hereunder during the
     unexpired portion of this Lease shall be reduced to such extent as the
     premises are not useable.

     C.  In the event of any such taking or private purchase in lieu thereof,
     Landlord shall be entitled to receive the entire award, Tenant shall be
     entitled to make a claim for a separate award for Tenant's relocation
     expenses in any condemnation proceedings so long as Tenant's claim does
     not reduce the amount of Landlord's award.

16.  HOLDING OVER.  Tenant will, at the termination of this Lease by lapse of
     time of otherwise, yield up immediate possession to Landlord.  If
     Landlord agrees in writing that Tenant may hold over after the
     expiration or termination of this Lease, unless the parties hereto
     otherwise agree in writing on the terms of such holding over, the hold
     over tenancy shall be subject to termination by Landlord at any time
     upon not less than five (5) days advance written notice, or by Tenant at
     any time upon not less than thirty (30) days advance written notice, and
     all of the other terms and provisions of this Lease shall be applicable
     during that period, except that Tenant shall pay Landlord from time to
     time upon demand, as rental for the period of any hold over, an amount
     equal to one and one-half (1-1/2) the Monthly Base Rent in effect on the
     termination date, plus all additional rental as defined herein, computed
     on a daily basis for each day of the hold over period.  No holding over
     by Tenant, whether with or without consent of Landlord, shall operate to
     extend this Lease except as otherwise expressly provided.  The preceding
     provision of this Paragraph 16 shall not be construed as Landlord's
     consent for Tenant to hold over.

17.  QUIET ENJOYMENT.  In the event this Lease is a sublease, then Tenant
     agrees to take the Premises subject to the provisions of the prior
     leases.  Landlord covenants that Tenant, upon paying the rental herein
     set forth and performing its other covenants and agreements herein set
     forth, shall peaceably and quietly have, hold and enjoy the Premises for
     the term hereof without hindrance from Landlord, subject to the terms
     and provisions of this Lease.

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18.  EVENTS OF DEFAULT.  The following events shall be deemed to be events of
     default by Tenant under this Lease:

     A.  Tenant shall fail to pay any installment of the rent herein reserved
     when due, or any payment with respect to taxes hereunder when due, or
     any other payment or reimbursement to Landlord required herein when due,
     and such failure shall continue for a period of five (5) days from the
     date such payment was due.

     B.  Insolvency of Tenant; an assignment by Tenant for the benefit or
     creditors; the filing by Tenant of a voluntary petition in bankruptcy;
     an adjudication that Tenant is bankrupt or the appointment of a receiver
     of the properties of Tenant; the filing of an involuntary petition of
     bankruptcy and failure of Tenant to secure a dismissal of the petition
     within thirty (30) days after filing; attachment of or the levying of
     execution on the leasehold interest and failure of Tenant to secure
     discharge of the attachment or release of the levy of execution within
     ten (10) days.  If Tenant consists of two or more individuals or
     business entities, the events of default specified in this Paragraph 18
     shall apply to each individual unless within ten (10) days after the
     event of default occurs, the remaining individuals produce evidence
     satisfactory to Landlord that they have unconditionally acquired the
     interest of the one causing the default.  If this Lease has been
     assigned, the events of default so specified shall apply only with
     respect to the one then exercising the rights of Tenant under this Lease.

     C.  Tenant shall vacate or abandon any substantial portion of the
     Premises.  Failure of Tenant for ten (10) days or more to occupy the
     Premises for one or more of the purposes permitted under this Lease,
     unless such failure is excused under other provisions of this Lease,
     shall be an abandonment of the property.

     D.  If any information furnished by or on behalf of Tenant to Landlord
     in connection with the entry of this Lease is determined to have been
     materially false, misleading or incomplete when made.

     E.  Tenant shall fail to comply with any term, provision, condition or
     covenant of this Lease (other than the foregoing in this Paragraph 18),
     and shall not cure such failure within twenty (20) days after written
     notice thereof to Tenant.  If the default is of such a nature that it
     cannot be completely remedied within the 20-day period, this provision
     shall be complied with if Tenant begins correction of the default
     within the 20-day period and thereafter proceeds with reasonable
     diligence and in good faith to effect the remedy as soon as practicable.
     Landlord shall not be required to give such written notice more than
     once during any single twelve (12) month period for the failure to
     perform the same covenant and upon the second failure, Landlord may, at
     this option, deem such failure as an automatic event of default, without
     notice to Tenant.

19.  REMEDIES.  Upon the occurrence of any such events of default described
     in Paragraph 18 hereof, Landlord shall have the option to pursue any one
     or more of the following remedies without any notice or demand whatsoever.

     A.  Landlord may accelerate all rent payments due hereunder, the present
     value of which shall then become immediately due and payable.

     B.  Terminate this Lease, in which event Tenant shall immediately
     surrender the Premises to Landlord, and if Tenant fails so to do,
     Landlord may, without prejudice to any other remedy which it may have
     for possession or rearranges in rent, enter upon and take possession of
     the Premises and expel or remove Tenant and any other person who may be
     occupying such Premises or any part thereof, by force if necessary,
     without being liable for prosecution or any claim of damages therefor,
     and Tenant shall pay to Landlord on demand the amount of all-loss and
     damage which Landlord may suffer by reason of such termination, whether
     through inability to relet the Premises on satisfactory terms or
     otherwise.  Landlord's right to any and all damages shall survive
     termination of the lease.

     C.  Enter upon and take possession of the Premises and expel or remove
     Tenant and any other person who may be occupying such Premises or any
     part thereof, by force if necessary, without being liable for prosecution
     or any claim for damages therefor, and relet the Premises for such terms
     ending before, on or after the expiration date of the Lease Term, at such
     rentals and upon such other conditions (including concessions and prior
     occupancy periods) as Landlord in its sole discretion may determine, and
     receive the rental therefor; and Tenant agrees to pay to the Landlord on
     demand any deficiency that may arise by reason of such reletting
     together with all costs incurred by Landlord in connection with such
     reletting.  Landlord shall have no obligation to relet the Premises or
     any part thereof in advance of any

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     other available space controlled by Landlord and shall not be liable
     refusal or failure to relet or in the event of reletting for refusal or
     failure to collect any rent due upon such reletting.  In the event
     Landlord is successful in reletting the Premises at a rental in excess
     of that agreed to be paid by Tenant pursuant to the terms of this Lease,
     Landlord and Tenant each mutually agree that Tenant shall not be
     entitled, under any circumstances, to such excess rental, and Tenant
     does hereby specifically waive any claim to such excess rental.

     D.  Enter upon the Premises, by force if necessary, without being liable
     for prosecution or any claim for damages therefor, and do whatever
     Tenant is obligated to do under the terms of this Lease; and Tenant
     agrees to reimburse Landlord on demand for any expenses which Landlord
     may incur in thus effecting compliance with Tenant's obligations under
     this Lease, and Tenant further agrees that Landlord shall not be liable
     for any damages resulting to the Tenant from such action, whether cause
     by the negligence of Landlord or otherwise.

     E.  Whether or not Landlord retakes possession or relets the Premises,
     Landlord shall have the right to recover unpaid rent and all damages
     caused by Tenant's default, including attorney's fees.  Damage shall
     include, without limitation: all rentals lost; all legal expenses and
     other related costs incurred by Landlord following Tenant's default; all
     costs incurred by Landlord in restoring the Premises for reletting; all
     costs, including, without limitation, any brokerage commissions; and the
     value of Landlord's time; plus interest thereon at the rate of eighteen
     percent (18%) per annum from date of expenditure until fully repaid.

     F.  In the event Tenant fails to pay any installment of rent, additional
     rent or other charges hereunder as and when such installment is due, to
     help defray the additional cost to Landlord for processing such late
     payments Tenant shall pay to Landlord on demand a late charge in an
     amount equal to five percent (5%) of such installment.  The provision
     for such late charge shall be in addition to all of Landlord's other
     rights and remedies hereunder or at law and shall not be construed as
     liquidated damages or as limiting Landlord's remedies in any manner.
     The parties agree that such late charge is a reasonable amount to defray
     Landlord's costs arising out of Tenant's late payment.

     G.  Landlord may sue periodically to recover damages during the period
     corresponding to the remainder of the Lease Term, and no action for
     damages shall bar a later action for damages subsequently occurring.

     H.  Pursuit of any of the foregoing remedies shall not preclude pursuit
     of any of the other remedies herein provided or any other remedies
     provided by law, such remedies being cumulative and nonexclusive, nor
     shall pursuit of any remedy herein provided constitute a forfeiture or
     waiver of any rent due to Landlord hereunder or of any damages accruing
     to Landlord by reason of the violation of any of the terms, provisions,
     conditions, and covenants herein contained.  No act or thing done by
     Landlord or its agents shall be deemed a termination of this Lease or an
     acceptance of the surrender of the Premises, and no agreement to
     terminate this Lease or accept a surrender of the Premises shall be
     valid unless in writing signed by Landlord.  No waiver by Landlord of
     any violation or breach of any of the terms, provisions and covenants
     herein contained shall be deemed or construed to constitute a waiver of
     any other violation or breach of any of the terms, provision,
     conditions, and covenants herein contained.  Landlord's acceptance of
     the payments of rental or other payments hereunder after the occurrence
     of an event of default shall not be construed as a waiver of such
     default, unless Landlord so notifies Tenant in writing.  Forbearance by
     Landlord to enforce one or more of the remedies herein provided upon an
     event of default shall not be deemed or construed to constitute a waiver
     of such default or of Landlord's right to enforce any such remedies with
     respect to such default or any subsequent default.

20.  ATTORNEY'S FEES.  In the event it becomes necessary for either party to
     enforce any rights incident to this Lease, in a court of law or equity,
     the prevailing party shall be entitled to recover reasonable attorney's
     fees (including those on appeal) in additional to damages or other
     appropriate relief.  If Landlord places any amounts owing under this
     Lease in the hands of an attorney or other party for collection or
     enforcement of the covenants contained herein, as a consequence of a
     default, as defined herein, the party in default agrees to pay
     reasonable fees and expenses so incurred, even though no suit or action
     is instituted.

21.  LANDLORD'S LIEN.  In addition to any statutory lien for rent in
     Landlord's favor, Landlord shall have and Tenant hereby grants to
     Landlord a continuing security interest for all rentals and other sums
     of money becoming due hereunder from Tenant, upon all goods, wares,
     equipment, fixtures, furniture, inventory, accounts, contract rights,
     chattel paper and other personal property of Tenant situated on the
     Premises, and such property shall not be removed

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     therefrom without the consent of Landlord until all arrearages in rent
     as well as any and all other sums of money then due to Landlord
     hereunder shall first have been paid and discharged. In the event of a
     default under this Lease, Landlord shall have, in addition to any other
     remedies provided herein or by law, all rights and remedies under the
     Uniform Commercial Code or other applicable law, including, without
     limitation, the right to sell the property described in this Paragraph
     21 at public or private sale. Tenant hereby agrees to execute such
     financing statements and other instruments necessary or desirable in
     Landlord's discretion to perfect the security interest hereby created.
     Any statutory lien for rent is not hereby waived, the express contractual
     lien herein granted being in addition and supplementary thereto.

22.  MORTGAGES.  Tenant accepts  this Lease subject and subordinate to any
     mortgage(s) and/or deed(s) of trust now or at any time  hereafter
     constituting a lien or charge upon the Premises or the improvements
     situated thereon; provided, however, that if the mortgagee, trustee, or
     holder of any such mortgage or deed of trust elects to have Tenant's
     interest in this Lease superior to any such instrument, then by notice
     to Tenant from such mortgagee, trustee or holder, this Lease shall be
     deemed superior to such lien, whether this Lease was executed before or
     after said mortgage or deed of trust. This provision shall be self
     operative, and no further instrument of subordination shall be necessary.
     In confirmation thereof, Tenant shall at any time hereafter on demand
     execute any instruments, releases or other documents which may be
     required by any mortgagee for the purpose of subjecting and
     subordinating this Lease to the lien of any such mortgage and confirming
     such other information as such mortgagee may reasonably require. Upon
     written request, Tenant shall provide Landlord with financial statements
     certified by Tenant as accurate and up to date, showing with reasonable
     detail Tenant's financial condition.

23.  BROKER'S COMMISSIONS.  Except for _________________________("Tenant's
     Broker"), Tenant represents and warrants that it has not engaged any
     broker, agent or finder who would  be entitled to any commission or fee
     in connection with the negotiation and execution of this Lease. Tenant
     shall indemnify, protect, defend and hold the Indemnified Parties
     harmless against any and all claims for any brokerage commissions and all
     costs, expenses and liabilities in connection therewith, including
     attorneys' fees and expenses arising out of any charge or claim for a
     commission or fee by any broker, agent or finder on the basis of any
     agreements made or alleged to have been made by or on behalf of Tenant
     except for Tenant's Broker and any brokers with whom Landlord has an
     express written  brokerage agreement.

24.  CONSTRUCTION LIENS.  Tenant shall have no authority, express or implied,
     to create or place any lien or encumbrance of any kind or nature
     whatsoever upon, or in any manner to bind, the Premises or to charge the
     rentals payable hereunder for any claim in favor of any person dealing
     with Tenant, including those who may furnish materials or perform labor
     for any construction or repairs. Tenant covenants and agrees that it
     will pay or cause to by paid all sums legally due and payable by it on
     account of any labor performed or materials furnished in connection with
     any work performed on the Premises on which any lien is or can be
     validly and legally asserted against its leasehold interest in the
     Premises or the improvements thereon and that it will indemnify,
     protect, defend and hold the Indemnified Parties harmless from any and
     all claims, liabilities, losses, costs or expenses (including attorneys'
     fees) based on or arising out of asserted claims or liens against the
     right, title and interest of the Landlord in the Premises or under the
     terms of this Lease.

25.  NOTICES.  Each provision of this instrument or of any applicable
     governmental laws, ordinances, regulations and other requirements with
     reference to the sending, mailing or delivery of any notice or the
     making of any payment by Landlord to Tenant or with reference to the
     sending, mailing or delivery of any notice or the making of any payment
     by Tenant to Landlord shall be deemed to be compiled with when and if
     the following steps are taken:

     A.  All rent and other payments required to be made by Tenant to
     Landlord hereunder shall be payable to Landlord at the address herein
     below set forth or at such other address as Landlord may specify from
     time to time by written notice delivered in accordance herewith.
     Tenant's obligation to pay rent and any other amounts to Landlord under
     the terms of this Lease shall not be deemed satisfied until such rent
     and other amounts have been actually received by Landlord.

     B.  All payments required to be made by Landlord to Tenant hereunder
     shall be payable to Tenant at the address herein below set forth, or at
     such other address within the continental United States as Tenant may
     specify from time to time by written notice delivered in accordance
     herewith.

                                       13
<PAGE>

     C.  Any notice or document required or permitted to be delivered
     hereunder shall be deemed to be delivered  whether actually received or
     not when deposited in the United States Mail, postage prepaid, Certified
     or Registered Mail, addressed to the parties hereto at the respective
     addresses set out below, or at such other address as they have
     theretofore specified by written notice delivered in accordance herewith:

                 LANDLORD:                              TENANT:

          RIGGS & COMPANY, a division of       Advanced Materials, Inc.
          RIGGS BANK N.A., as trustee of       9400 S.W. Tualatin Sherwood Road
          the Multi-Employer Property Trust    Tualatin, Oregon 97062

     c/o  Trammell Crow Company
          8930 SW Gemini Drive
          Beaverton, Oregon 97008-7123

     If and when included within the term "Landlord", as used in this
     instrument, there are more than one person, firm or corporation, all
     shall jointly arrange among themselves for their joint execution of such
     a notice specifying some individual at a specific address for the
     receipt of notices and payments to Landlord. If and when included within
     the term "Tenant", as used in this instrument, there are more than one
     person, firm or corporation, all shall jointly arrange among themselves
     for their joint execution of such a notice specifying some individual at
     a specific address within the continental United States for the receipt of
     notices and payments to Tenants. All parties included within the terms
     "Landlord" and "Tenant", respectively, shall be bound by notices given in
     accordance with the provisions of this paragraph to the same effect as if
     each had received such notice.

26.  MISCELLANEOUS.

     A.  Words of any gender used in this Lease shall be held and construed to
     include any other gender, and words in the singular number shall be held
     to include the plural, unless the context otherwise requires.

     B.  The terms, provisions and covenants and conditions contained in this
     Lease shall apply to, inure to the benefit of, and be binding upon,
     the parties hereto and upon their respective heirs, legal
     representatives, successors and permitted assigns, except as otherwise
     herein expressly provided. Landlord shall have the right to assign any
     of its rights and obligations under this Lease.

     C.  Each party agrees to furnish to the other, promptly upon demand, a
     corporate resolution, proof of due authorization by partners, or other
     appropriate documentation evidencing the due authorization of such
     party to enter into this Lease. If Tenant is a partnership, company,
     corporation or other entity, each individual executing this Lease on
     behalf of Tenant represents and warrants to Landlord that he or she is
     duly authorized to so execute and deliver this Lease and that all
     partnership, company, corporation or other entity actions and consents
     required for execution of this Lease have been given, granted or
     obtained.

     D.  The captions inserted in this Lease are for convenience only and in
     no way define, limit or otherwise describe the scope or intent of this
     Lease, or any provision hereof, or in any way affect the interpretation
     of this Lease.

     E.  Tenant agrees from time to time within ten (10) days after request
     of Landlord, to deliver to Landlord, or Landlord's designee, an estoppel
     certificate stating that this Lease is in full force and effect,  the
     date to which rent has been paid, the unexpired term of this Lease and
     such other matters pertaining to this Lease as may be requested by
     Landlord, Landlord's lender, a prospective lender or a prospective
     purchaser. It is understood and agreed that Tenant's obligation to
     furnish such estoppel certificates in a timely fashion is a material
     inducement for Landlord's execution of this Lease. If Tenant fails to
     respond within ten (10) business days of its receipt of a written request
     by Landlord as provided in this paragraph, such shall be a breach of
     this Lease and Tenant shall be deemed to have admitted the accuracy of
     any information supplied by Landlord to a prospective purchaser,
     mortgagee or assignee. The estoppel certificate Tenant shall be required
     to execute may be in, but is not limited to, the form attached hereto as
     Exhibit D.

     (a) the date this Lease was executed and the date it expires; (b) the
     date Tenant entered into occupancy of the Premises; (c) the amount of
     monthly Base Rent and Additional Rent and the date to which such Base
     Rent and Additional Rent have been paid; and (d) certifying that (1)

                                       14

<PAGE>

     this Lease is in full force and effect and has not been assigned,
     modified, supplemented or amended in any way (or specifying the date of
     the agreement so affecting this Lease); (2) Landlord is not in breach of
     this Lease (or, if so, a description of each such breach) and that in no
     event, omission or condition has occurred which would result, with the
     giving of notice or the passage of time, in a breach of this Lease by
     Landlord; (3) this Lease represents the entire agreement between the
     parties with respect to the Premises; (4) all required contributions by
     Landlord to Tenant on account of Tenant Improvements have been
     received;(5) on the date of execution, there exist no defenses or
     offsets which the Tenant has against the enforcement of this Lease by
     the Landlord; (6) no Base Rent, Additional Rent or other sums payable
     under this Lease  have been paid in advance except for Base Rent and
     Additional Rent for the then current month; (7) no security has been
     deposited with Landlord (or, if so, the amount of such security); (8) it
     is intended that any Tenant's statement may be relied upon by
     a prospective purchaser or mortgagee of Landlord's interest or an
     assignee of any such mortgagee; (9) the representations in the paragraph
     captioned "ERISA REPRESENTATIONS" remain true and correct; and (10) such
     other information as may be reasonably requested by Landlord.

     F.  This Lease may not be altered, changed, modified or amended except
     by an instrument in writing signed by both parties hereto.
     Notwithstanding anything contained in the Lease to the contrary, including
     without limitation, Landlord's agents, only officers of Riggs Bank N.A.,
     are authorized to amend, renew or terminate this Lease, or to compromise
     any of Landlord's claims under this Lease or to bind Landlord in any
     manner. Without limiting the effect of the previous sentence, no
     property manager or broker shall be considered an authorized agent of
     Landlord to amend, renew or terminate this Lease or to compromise any of
     Landlord's claims under this Lease or to bind Landlord in any manner.

     G.  All indemnity obligations and all other obligations of Tenant
     hereunder not fully performed as of the expiration or earlier
     termination of the term of this Lease shall survive the expiration or
     earlier termination of the Term hereof, including, without limitation, all
     payment obligations with respect to taxes and insurance and all
     obligations concerning the condition of the Premises. Upon the
     expiration or earlier termination of the Term hereof, and prior to
     Tenant vacating the Premises, Tenant shall pay to Landlord any amount
     reasonably estimated by Landlord as necessary to put the Premises,
     including, without limitation, all heating and air conditioning systems
     and equipment therein, in good condition and repair pursuant to
     Paragraph 10(B) hereof. Tenant shall also, prior to vacating the
     Premises, pay to Landlord the amount, as estimated by Landlord, of
     Tenant's obligation hereunder for real estate taxes and insurance
     premiums for the year in which the Lease expires or terminates. All such
     amounts shall be used and held by Landlord for payment of such
     obligations of Tenant hereunder, with Tenant being liable for any
     additional costs therefor upon demand by Landlord, or with any excess
     to be returned to Tenant after all such obligations have been determined
     and satisfied, as the case may be. Any security deposit held by Landlord
     shall be credited against the amount payable by Tenant under this
     Paragraph 26(G).

     H.  If any clause or provision of this Lease is illegal, invalid or
     unenforceable under present or future laws effective during the Term of
     this Lease, then and in that event, it is the intention of the parties
     hereto that the remainder of this Lease shall not be affected thereby,
     and it is also the intention of the parties to this Lease that in lieu of
     each clause or provision of this Lease that is illegal, invalid or
     unenforceable, there be added as part of this Lease contract a clause or
     provision as similar in terms to such illegal, invalid or unenforceable
     clause or provision as may be possible and be legal, valid and enforceable.

     I.  Because the Premises are on the open market and are presently being
     shown, this Lease shall be treated as an offer with the Premises being
     subject to prior lease and such offer subject to withdrawal or
     non-acceptance by Landlord or to other use of the Premises without
     notice, and this Lease shall not be valid or binding unless and until
     accepted by Landlord in writing and a fully executed copy delivered to
     both parties hereto.

     J.  All references in this Lease to "the date hereof" or similar
     references shall be deemed to refer to the last date, in point of time,
     on which all parties hereto have executed this Lease.

     K.  Tenant represents to Landlord that with the exception of this Lease,
     neither the Tenant nor any affiliate of the Tenant is a tenant under a
     lease or any other tenancy arrangement (1) with (a) Riggs & Company, a
     division of Riggs Bank N.A., as trustee of the Multi-Employer Property
     Trust; (b) The Riggs Bank N.A., as trustee of the Multi-Employer
     Property Trust; (c) the Multi-Employer Property Trust; (d) the National
     Bank of Washington Multi-Employer  Property Trust, the previous name of
     the Multi-Employer Property Trust; (e) The Riggs National Bank of
     Washington, D.C., as trustee of the Multi-Employer Property Trust; (f)

                                       15
<PAGE>

     Alameda Industrial Properties Joint Venture; (g) Harman International
     Business Campus Joint Venture; (h) Beaverton-Redmond Tech Properties;
     (i) Corporate Drive Corporation as trustee of the Corporate Drive
     Nominee Realty Trust; (j) Goldbelt Place Joint Venture; (k) BOCA 1515, a
     joint venture; (l) Arboretum Lakes-I, L.L.C., a Delaware limited
     liability company; (m) Village Green of Rochester Hills Associates,
     L.L.C.; (n) Pine Street Development, L.L.C.; or (o) MEPT Realty LLC; or
     (2) involving any property in which any one or more of the entities
     named in clauses (1)(a) through (d) are known by the Tenant to have an
     ownership interest.

     L.  Tenant shall not, and shall not cause or allow any other party to,
     construct, use, deposit, store, dispose, place, or locate on or about
     the Premises or the Project any hazardous substances (as later defined)
     without the prior written consent of Landlord, which shall not be
     unreasonably withheld as long as Tenant demonstrates to Landlord's
     reasonable satisfaction that: (a) the nature and quality of any
     hazardous material is necessary, useful, and appropriate to Tenant's
     business conducted at the Premises; (b) the hazardous material will be
     used, kept, and stored with the highest degree of care and in a manner
     that complies with all governmental laws, ordinances, regulations,
     orders, and policies regulating any such hazardous material so brought
     upon or used or kept in or about the Premises; (c) such hazardous
     substances are disposed of off the Premises and the Project, in a
     disposal site licensed or designated for such hazardous substances, with
     the utmost care and caution and in a manner consistent with applicable
     governmental laws, ordinances, regulations, orders and policies; (d)
     Tenant pays as additional rent any increase in the premiums charged
     Landlord for insurance coverage by reason of Tenant's storage,
     placement, location, or use of hazardous substances or any premiums for
     additional insurance coverages deemed appropriate by Landlord because of
     the presence of such hazardous substances; and (e) Tenant procures any
     insurance coverages demanded by Landlord and naming the Landlord and
     such other parties as Landlord requires as additional insureds.

     Tenant shall indemnify, defend, and hold the Indemnified Parties
     harmless from any and all claims, judgments, damages, penalties, fines,
     costs, liabilities, or losses (including, without limitation, diminution
     in value of the Premises, damages for the loss or restriction on use of
     rentable or usable space or of any amenity of the Premises, damages
     arising from any adverse impact on marketing of space, and sums paid in
     settlement of claims, attorneys' fees, consultant fees, and expert fees)
     which arise during or after the Lease Term as a result of contamination
     to the Premises by hazardous substance during the term of this Lease or
     to the Property as a result of an act or omission of Tenant, and
     Tenant's agents or employees. This indemnification of Landlord by Tenant
     includes, without limitation, costs incurred in connection with any
     investigation of site conditions or any cleanup, remedial, removal, or
     restoration work required by any federal, state, or local governmental
     agency or political subdivision because of hazardous substances present
     in the soil or ground water on or under the Premises. Without limiting
     the foregoing, if the presence of any hazardous substances on the
     Premises occurs during the term of this Lease, Tenant shall promptly
     take all actions at its sole expense as are necessary to return the
     Premises to the condition existing prior to the release of any such
     hazardous substances to the Premises, provided that Landlord's approval
     of such actions shall first be obtained, which approval shall not be
     unreasonably withheld so long as such actions would not potentially have
     any material adverse long-term or short-term effect on the Premises. The
     foregoing indemnity shall survive the expiration or earlier termination
     of this Lease.

     The term "hazardous substances" shall include (a) any chemical,
     material, element, compound, solution, mixture, substance, or other
     matter of any kind whatsoever which is a hazardous substance as defined
     in, or related by the Federal Comprehensive Environmental Response
     Compensation and Liability Act, 42 USC Section 9601 et seq., as amended;
     the regulations promulgated from time to time thereunder; the wastes
     listed in the United States Department of Transportation Hazardous
     Materials Table (49 CFR 172.101); the United States Environmental
     Protection Agency Hazardous Substances (40 CFR Part 302), and amendments
     thereto; environmental laws and regulations administered by the
     Environmental Protection Agency or its delegees, similar laws and
     regulations of the State of Oregon, City of Tualatin, or any state or
     local governmental organization or agency, or additional or substitute
     laws or regulations with respect to the same subject matter enacted or
     promulgated by the federal, state, local, or quasi-governmental
     organization or agency; and (b) asbestos or materials containing
     asbestos, petroleum products, or such other substances, materials, and
     wastes that are or become regulated under the applicable local, state,
     or federal laws, whether or not within clause (a). The above
     notwithstanding, Tenant shall not be liable for hazardous substances
     contamination of the Premises occuring prior to the Commencement Date of
     the Lease. The Landlord represents and warrants to its actual knowledge
     that the Premises are not contaminated by any hazardous substances as of
     the Commencement Date.

     M.  This Lease shall be governed by and construed in accordance with the
     laws of the State of Oregon.

                                       16
<PAGE>

     N.  For any litigation, action or dispute arising out of or in
     connection with the agreement, the matter shall be tried and determined
     by a judge alone, WITHOUT A JURY. All parties shall submit to the
     jurisdiction of an appropriate court in the State of Oregon, with venue
     in the County of Washington. Tenant irrevocably consents to the service
     of process of any action or proceeding at the address of the Premises.

     O.  If Tenant fails to perform any obligation under this Lease, Landlord
     shall have the option to do so after thirty (30) days written notice to
     Tenant. All of Landlord's expenditures to correct the default shall be
     reimbursed by Tenant on demand with interest at a rate of one and
     one-half percent (1-1/2%) per month from the date of expenditure by
     Landlord.

     P.  If Tenant shall request Landlord's consent under this Lease and
     Landlord shall fail or refuse to give such consent, Tenant shall not be
     entitled to any damages for any withholding by Landlord of its consent.
     Tenant's sole remedy shall be an action for specific performance or
     injunction and that remedy shall be available only in those instances
     where Landlord has expressly agreed in writing not to unreasonably
     withhold Landlord's consent.

     Q.  This Lease shall not be recorded without the consent in writing of
     Landlord. If Landlord consents, Landlord shall execute and acknowledge a
     memorandum of this Lease in a form suitable for recording, and Tenant
     may record the memorandum.

     R.  This Lease contains the entire agreement between the parties
     concerning the subject matter and supersedes any prior agreements or
     understandings related thereto. There are merged herein all prior and
     collateral representations, promises, and conditions in connection with
     the subject matter hereof. This Lease supersedes and is in lieu of all
     existing agreements or arrangements between the parties relating to the
     Premises identified herein.

     S.  No payment by Tenant or receipt by Landlord of an amount less than
     the Base Rent or additional rent or any other sum due and payable under
     this Lease shall be deemed to be other than a payment on account of the
     Base Rent, additional rent or other such sum, nor shall any endorsement
     or statement on any check or any letter accompanying any check or
     payment be deemed an accord and satisfaction, nor preclude Landlord's
     right to recover the balance of any amount payable or Landlord's right
     to pursue any other remedy provided in this Lease or at law.

     T.  The waiver by Landlord of any covenant or condition contained in
     this Lease shall not be deemed to be a waiver of any subsequent breach
     of such covenant or condition nor shall any custom or practice which may
     develop between the parties in the administration of this Lease be
     construed to waive or lessen the rights of Landlord to insist on the
     strict performance by Tenant of all of the covenants and conditions of
     this Lease. No act or thing done by Landlord or Landlord's Agents during
     the Lease Term shall be deemed an acceptance or a surrender of the
     Premises, and no agreement to accept a surrender of the Premises shall
     be valid unless made in writing and signed by Landlord. The mention in
     this Lease of any particular remedy shall not preclude Landlord from any
     other remedy it might have, either under this Lease or at law, nor shall
     the waiver of or redress for any violation of any covenant or condition
     in this Lease or in any of the rules or regulations attached to this
     Lease or later adopted by Landlord, prevent a subsequent act, which
     would have originally constituted a violation, from having all the force
     and effect of an original violation. The receipt by Landlord of Base
     Rent, additional rent or any other sum payable under this Lease with
     knowledge of a breach of any covenant or condition in this Lease shall
     not be deemed a waiver of such breach. The failure of Landlord to
     enforce any of the rules and regulations attached to this Lease or later
     adopted, against Tenant or any other tenant in the Building, shall not
     be deemed a waiver. Any waiver by Landlord must be in writing and signed
     by Landlord to be effective.

     U.  In the event that Landlord shall be delayed, hindered in or
     prevented from the performance of any act or obligation required under
     this Lease by reason of acts of God, strikes, lockouts, labor troubles
     or disputes, inability to procure or shortage of materials or labor,
     failure of power or utilities, delay in transportation, fire, vandalism,
     accident, flood, severe weather, other casualty, governmental
     requirements (including mandated changes in the Plans and Specifications
     or the Tenant Improvements resulting from changes in pertinent
     governmental requirements or interpretations thereof), riot,
     insurrection, civil commotion, sabotage, explosion, war, natural or
     local emergency, acts or omissions of others, including Tenant, or other
     reasons of a similar or dissimilar nature not solely the fault of, or
     under the exclusive control of, Landlord, then performance of such act
     or obligation shall be excused for the period of the delay

                                       17
<PAGE>

     and the period for the performance of any such act or obligation shall
     be extended for the period equivalent to the period of such delay.

     V.  Time is of the essence with respect to the performance of every
     covenant and condition of this Lease.

27.  LIABILITY OF LANDLORD. Landlord has executed this Lease by its trustee
     signing solely in a representative capacity. Notwithstanding anything
     contained in this Lease to the contrary, Tenant confirms that the
     covenants of Landlord are made and intended, not as personal covenants
     of the trustee, or for the purpose of binding the trustee personally,
     but solely in the exercise of the representative powers conferred upon
     the trustee by its principal. Liability with respect to the entry and
     performance of this Lease by or on behalf of Landlord, however it may
     arise, shall be asserted and enforced only against the Landlord's estate
     and interest in the Building and Landlord shall have no personal
     liability in the event of any claim against Landlord arising out of or
     in connection with this Lease, the relationship of Landlord and Tenant
     or Tenant's use of the Premises. Further, in no event whatsoever shall
     any Landlord's Agent have any liability or responsibility whatsoever
     arising out of or in connection with this Lease, the relationship of
     Landlord and Tenant or Tenant's use of the Premises. Any and all
     personal liability, if any, beyond that which may be asserted under this
     paragraph, is expressly waived and released by Tenant and by all persons
     claiming by, through or under Tenant.

28.  ACCESS LAWS.

     A.  As used in this Paragraph, the term "Access Laws" shall mean the
     Americans with Disabilities Act of 1990 (including the Americans with
     Disabilities Act Accessibility Guidelines for Buildings and Facilities),
     the Fair Housing Amendments Act of 1988, all state and local laws or
     ordinances related to handicapped access, or any statute, rule,
     regulation, ordinance, order of governmental bodies or regulatory
     agencies, or order or decree of any court adopted or enacted with
     respect to any of the foregoing. The term Access Laws shall include all
     Access Laws now in existence or hereafter enacted, adopted or applicable.

     B.  Landlord makes no representations regarding the compliance of the
     Premises or the Project with Access Laws; provided that, if any
     improvements or alterations constructed by Landlord do not comply with
     Access Laws, Landlord shall be responsible for correcting such defects
     if and to the extent required by law.

     C.  Tenant agrees to notify Landlord immediately if Tenant becomes aware
     of: (i) any condition or situation in or on the Premises which would
     constitute a violation of any Access Laws, or (ii) any threatened or
     actual lien, action or notice of the Premises not being in compliance
     with any Access Laws. Tenant shall inform Landlord of the nature of any
     such condition, situation, lien, action or notice and of the action
     Tenant proposes to take in response thereto.

     D.  Tenant shall not alter or permit any assignee or subtenant or any
     other person to alter the Premises in any manner which would violate any
     Access Laws or increase Landlord's responsibilities for compliance with
     Access Laws, without the prior approval of the Landlord. In connection
     with any such approval, Landlord may require a certificate of compliance
     with Access Laws from an architect, engineer or other person acceptable
     to Landlord. Tenant agrees to pay the reasonable fees incurred by such
     architect, engineer or other third party in connection with the issuance
     of such certificate of compliance. Landlord's consent to any proposed
     Tenant alteration shall (a) not relieve Tenant of its obligations or
     indemnities contained in this paragraph or this Lease or (b) be
     construed as a warranty that such proposed alternation complies with any
     Access Law.

     E.  Tenant shall be solely responsible for all costs and expenses
     relating to or incurred in connection with bringing the Premises, the
     building in which the Premises are located and the common areas of the
     Project into compliance with the Access Laws if and to the extent such
     costs and expenses arise out of or relate to Tenant's use of the
     Premises or Tenant's modifications, improvements or alterations to the
     Premises after the date of this Lease.

     F.  Tenant agrees to indemnify, defend, protect and hold the Indemnified
     Parties harmless from and against any and all claims, demands, damages,
     losses, liens, liabilities, penalties, fines, lawsuits, and other
     proceedings and costs and expenses (including attorneys' fees) arising
     directly or indirectly from or out of, or in any way connected with, any
     activity on or use of the Premises or the Project by Tenant, its agents,
     employees, contractors, invitees, or any subtenant or concessionaire put
     into possession of all or any part of the Premises by Tenant, which
     activity or use results in the Premises violating any applicable Access
     Laws.

                                       18
<PAGE>

     G.  The provisions in this Paragraph shall supersede any other
     provisions in this Lease regarding Access Laws to the extent
     inconsistent with the provisions of this Paragraph. The provisions in
     this Paragraph shall survive the expiration of the Term or the
     termination of this Lease for any other reason whatsoever.

29.  ADDITIONAL PROVISIONS.

     Paragraph 30, attached hereto, is by this reference incorporated herein.

     LANDLORD:

     RIGGS & COMPANY, a division of RIGGS BANK N.A.,
     as trustee of the Multi-Employer Property Trust, a trust organized
     under 12 C.F.R. Section9.18

     By: /s/ Leanne Tobias
         ----------------------
     Name:  Leanne Tobias
     Title: Managing Director
     Date:  6/30/99

     TENANT:

     ADVANCED MATERIALS, INC., a California corporation
     9400 S.W. Tualatin Sherwood Road
     Tualatin, Oregon 97062

     By: /s/ David A. Lasnier
         --------------------
     Name:  David A. Lasnier
     Title: Sr. Vice President
     Date:  6/21/99

                                      19

<PAGE>

                            TENANT ACKNOWLEDGEMENT

STATE OF CALIFORNIA    )
                            SS.
County of Los Angeles  )

     BE IT REMEMBERED, That on this 21st day of JUNE, 1999, before me, the
undersigned a Notary Public in and for said County and State, personally
appeared the within name DAVID A. LASNIER known to me to be SENIOR VICE
PRESIDENT, ADVANCED MATERIALS who executed the within instrument and
acknowledged to me that he executed the same freely and voluntarily.

                       IN TESTIMONY WHEREOF, I hereunto set my hand and affixed
                           my official seal the day and year last above written.

[SEAL]                         /s/ SUZANNE COOLEY
                                   ----------------------------------------
                                   Notary Public for CALIFORNIA
                                   My commission expires SEPTEMBER 21, 2001

                           LANDLORD ACKNOWLEDGEMENT

DISTRICT OF COLUMBIA )
                       SS.

      BE IT REMEMBERED, That on this 30th day of JUNE, 1999, before me, the
undersigned a Notary Public in and for said County and State, personally
appeared the within name, LEANNE TOBIAS known to me to be MANAGING DIRECTOR
who executed the within instrument and acknowledged to me that he executed
the same freely and voluntarily.

                       IN TESTIMONY WHEREOF, I hereunto set my hand and affixed
                           my official seal the day and year last above written.

   [SEAL]                      /s/ DENISE HART-GAMBLE
                                   -------------------------------------------
                                   Notary Public for DISTRICT OF COLUMBIA
                                   My commission expires MARCH 31, 2003

<PAGE>

             ADDENDAS AND ADDITIONAL PROVISIONS TO LEASE AGREEMENT

                               DATED JUNE 4, 1999

                                    BETWEEN

                                RIGGS & COMPANY,
  A DIVISION OF RIGGS BANK N.A., AS TRUSTEE OF THE MULTI-EMPLOYER PROPERTY TRUST
                                  ("LANDLORD")

                                      AND

                             ADVANCED MATERIALS, INC.
                             A CALIFORNIA CORPORATION
                                   ("TENANT")

                __________________________________________________

ADDENDUM TO PARAGRAPH 2 - MONTHLY BASE RENT. The Monthly Base Rent as
provided for in Paragraph 2 of the Lease shall be as follows:

<TABLE>
<CAPTION>

                          Months                $/Month
                          ------                -------
                          <S>                   <C>
                              1                 $7,514.00
                            2-8                 $7,715.00
                           9-25                 $8,083.00
</TABLE>

ADDITIONAL PARAGRAPH 30, OPTION TO EXTEND. While this Sublease is in full
force and effect, provided that Tenant is not in material default of any of
the terms, covenants and conditions thereof, Landlord grants to Tenant one
(1) option to extend the term of the Sublease for a period of three (3)
years, commencing upon the termination of the original Lease term,
exercisable by giving Landlord notice in writing not later than one hundred
eighty days (180) days prior to the commencement date of the applicable
option term. Such extension or renewal of the term shall be on the same
terms, convenants or conditions as provided for in the original or
immediately preceding term except that the monthly base rent during the
extended term shall be at the fair market rental then in effect on equivalent
properties, of equivalent size, in equivalent areas determined in the manner
set forth below.

     Landlord shall provide Tenant with written notification of Landlord's
determination of such fair market rental within thirty (30) days after
Tenant's extension notice. For purposes of this Paragraph 30, in the event
Landlord and Tenant are unable to agree upon the fair market rental within
thirty (30) days thereafter ("Negotiation Period"), the fair market rental
shall be established as follows: Within ten (10) days after the expiration of
the Negotiation Period, Landlord shall, in writing, designate an appraiser.
Within ten (10) days after the date of Landlord's written designation, Tenant
shall either accept Landlord's appraiser or shall provide Landlord with the
name of a second appraiser. If Tenant designates a second appraiser, the two
designated appraisers shall designate a third appraiser within ten (10) days
thereafter. The three appraisers shall then each determine fair market rental
within ten (10) days following the designation of the third appraiser (or
Tenant's acceptance of the appraiser designated by Landlord). For purposes of
this Paragraph 30, fair market rental shall be the average of the two closest
determinations by such appraisers. Tenant shall have ten (10) days following
determination of fair market rental to rescind its extension notice. Any
appraiser designated pursuant to this Paragraph 30 shall be an MAI appraiser
with at least five (5) years' experience in valuing commercial real estate
rental values in the Greater Portland area. All costs in connection with the
appraisal described in this Paragraph 30 shall be shared equally by the
parties. However, in no event shall the rental in the renewal term be below
the rental in the primary term of the Lease. In the event the demised
Premises is sublet or assigned this renewal option will be null and void and
of no further effect.

<PAGE>

                                 EXHIBIT A

                                 PREMISES

                                  [GRAPH]

________________________________________________________________________________

                                  [GRAPH]
<PAGE>

                                   EXHIBIT B

                               LEGAL DESCRIPTION

A tract of land situated in the S.W. 1/4 of Section 23, T.2S., R.1W., W.M.,
City of Tualatin, Washington County, Oregon, being more particularly
described as follows:

Commencing at the south 1/4 corner of said Section 23; thence, along the east
line of the southeast quarter of the southwest quarter of said Section 23,
North 0 degrees 15'13" West, 32.89 feet to the true point of beginning;
thence, along the south line of that tract of land conveyed to Earl J. Itel,
recorded July 16, 1969, in book 750, Page 279, South 89 degrees 37'46" West,
1292.79 feet to the southwest corner of said Itel tract: thence, along the
west line of said Itel tract, North 0 degrees 01'38" East, 141.35 feet to a
point on the southerly right-of-way line of the Burlington Northern Railroad
(formerly Spokane, Portland, and Seattle Railroad); thence, along said
southerly right-of-way, being 25.00 feet from the centerline of the tracks,
when measured at right angles, North 56 degrees 01'15" East, 48.57 feet;
thence, continuing along said right-of-way and along the arc of a 165.0 foot
offset spiral curve to the right, offset 25.0 southerly, having a centerline
angle of 2 degrees 28'30", (chord bears North 57 degrees 01'09" East, 163.90
feet) to a point of spiral to curve; thence, continuing along said
right-of-away and along the arc of a 1884.86 foot radius curve to the right,
through a central angle of 20 degrees 33'00" (chord bears North 68 degrees
46'15" East, 672.42 feet) a distance of 676.03 feet to a point of curve to
spiral; thence, along the arc of a 165.0 foot offset spiral curve to the
right, offset 25.0 feet southerly, having a centerline spiral angle of 2
degrees 28'30" (chord bears North 80 degrees 31'21" East, 163.90 feet), to a
point of spiral; thence, North 81 degrees 31'15" East, 48.67 feet to a point
on the east line of that tract of land conveyed by deed to Earl J. Itel,
recorded in Book 750, Page 279, Washington County Deed Records; thence, along
the east line of said Itel tract, South 0 degrees 07'32" West, 100.00 feet to
the southeast corner thereof; thence, along the south line of said Itel
tract, North 89 degrees 52'28" West, 85.12 feet to a point on the east line
of the southeast quarter of the southwest quarter of said Section 23; thence,
along said east line, South 0 degrees 15'13" East, 593.31 feet; thence, South
44 degrees 17'29" East, 107.89 feet to a point that is 30.00 feet, when
measured at right angles, from the south line of said 1/4 said Section 23;
thence, parallel with the south line of said N.E. 1/4, South 89 degrees
29'45" West, 75.00 feet to a point on the west line of said N.E. 1/4; thence,
along said West line, North 0 degrees 15'13" West, 2.89 feet to the true
point of beginning.

Contains 677,845 square feet (15.56 acres).

<PAGE>

                                    EXHIBIT C

                           PLANS AND SPECIFICATIONS

This Exhibit C is intentionally left blank

<PAGE>

                                   EXHIBIT D
                          TUALATIN CORPORATE CENTER
                        TENANT'S ESTOPPEL CERTIFICATE

TO:  Riggs & Company, a division of Riggs Bank, N.A., as Trustee of the
     Multi-Employer Property Trust

            c/o   Kennedy Associates Real Estate Counsel, Inc.
                  2400 Financial Center Building
                  Seattle, Washington 98161

THIS IS TO CERTIFY:

     1.  That the undersigned is the Tenant under that certain Lease
dated __________________, and, if applicable, amended on ___________________,
by and between ____________________, a __________________________ limited
partnership ("Landlord") and the undersigned ("Tenant") covering those certain
premises located as shown on the drawing made part of the Lease (the
"Premises").

     2.  That said Lease is in full force and effect and, except as noted in
Paragraph 1, above, has not been modified, changed, altered or amended in any
respect, and is the only lease or agreement (oral or written) between the
Tenant and Landlord affecting the Premises.

     3.  To the best of Tenant's knowledge, the information set forth below
is true and correct:

         (a)  Square footage of the Premises: _______________

         (b)  Annual rent as of the commencement of Lease: $_______________

         (c)  Current annual rent (if different than at
              commencement): $_______________

         (d)  Lease term commenced:______________

         (e)  Lease termination date: ______________

         (f)  Rent is paid to and including: _____________

         (g)  Security Deposit: $______________

         (h)  Prepaid rent for and in amount of: $_____________

         (i)  Amount of current monthly Escrow payment obligations with
              respect to taxes and other charges under Paragraph 4 of the
              Lease and with respect to insurance under Paragraph 13 of the
              Lease:

              Taxes:          $_______________

              Insurance:      $_______________

         (j)  Amount of current monthly payments due under Paragraph 7 of the
              Lease with respect to Common Area Maintenance
              charges: $_______________

         (k)  Dates through which Tenant has paid monthly Escrow Payments and
              Common Area Maintenance charges:

              Escrow Payment for Taxes:_______________

              Escrow Payment for Insurance: _______________

              Common Area Maintenance: _______________

     4.  The Tenant, unless otherwise stated in Exhibit A, now occupies the
Premises, accepts the Premises in their current condition subject only to
those punch list items shown on Exhibit A, if any, and is not aware of any
defect in the Premises except as shown on Exhibit A, if any.  No rent has
been collected in the current month other than as disclosed in Paragraph 3.
No free rent or other concessions, benefits, or inducements other than as
specified in the Lease have been granted to Tenant or undertaken by the named
Landlord.  All required contributions by Landlord to Tenant on account of
tenant improvements have been made or received as applicable.

     5.  The Tenant has not been granted any renewal, expansion or purchase
options and has not been granted any rights of first refusal except as
disclosed in writing in the Lease.

<PAGE>

     6.  Neither Tenant nor Landlord is in default under the Lease and there
has not occurred any event, which by notice or lapse of time or both or
otherwise, will result in any default.  As of the date hereof and except as
set forth in the Lease, the undersigned is entitled to no credit, offset or
deduction in the rent.  Tenant knows of no liabilities or obligations of
Landlord which have accrued but are unsatisfied under the Lease as of the
date of this Certificate.

     7.  Tenant is required, under Paragraph 7 of the Lease, to pay a
proportionate share of certain costs associated with the "Common Area which
shall be defined from time to time by Landlord."

     8.  To the best of Tenant's knowledge, there are no actions, whether
voluntary or otherwise, pending against the undersigned under the bankruptcy
laws or other laws for the relief of debtors of the United States or any
state thereof.

     9.  No party-in-interest relationship exists between one or more of the
pension plans identified in Section 26K of the Lease and the Tenant such that
the Lease will become a non-exempt, prohibited transaction under ERISA on
purchase of the Premises by the addressee.

    10.  The term "party-in-interest" shall have the meaning assigned to it
in Section 3(14) of ERISA.  ERISA shall mean the Employee Retirement Income
Security Act 0f 1974, as amended.

                DATED this 21st day of June, 1999

                                     TENANT: /s/  [ILLEGIBLE]
                                             -------------------------------

<PAGE>

                                   EXHIBIT E

                   LIST OF APPLICABLE EMPLOYEE BENEFIT PLANS

Participants whose holdings in the Multi-Employer Property Trust constitute
5% or more of net assets, as of 1/1/90:

         -  NATIONAL AUTOMATIC SPRINKLER INDUSTRY PENSION FUND

         -  PLUMBERS AND PIPEFITTERS NATIONAL PENSION FUND<PAGE>

                              EMPLOYMENT AGREEMENT

Agreement made this 01st day of August, 1999 between Advanced Materials Group,
Inc., a Nevada corporation (the "Company") and David A. Lasnier, Laguna Niguel,
California ("Employee").

                                   WITNESSETH:

WHEREAS, the parties acknowledge that Employee has abilities and expertise that
are unique and valuable to the Company; and

WHEREAS, in view of such abilities and expertise, the Company desire to retain
Employee as Senior Vice President/General Manager; and

WHEREAS, the Company and Employee have determined that such engagement of
Employee be subject to a mutually acceptable written agreement;

NOW THEREFORE, in consideration of the mutual agreements contained herein and
intending to be legally bound, the parties hereto agree as follows:

1.        SERVICES

          (a)  The Company hereby employs Employee and Employee hereby accepts
               such employment on the terms and conditions set forth herein. In
               this regard, Employee shall perform and discharge well and
               faithfully the duties and responsibilities that are commensurate
               with his position.

          (b)  Employee is not and shall not be engaged directly or indirectly
               in any other business activity, or previously have contracted to
               perform such activity at a future date which would prevent the
               performance of the obligations hereunder or involve activities
               which would result in a breach of any provision of this
               Agreement.

2.        TERM

          (a)  The term of this Agreement shall begin on the date hereof and
               shall cease and terminate upon the earliest of (i) the close of
               business on the 1st day of August, 2001, (ii) the death of
               Employee; (iii) termination by the Company, at its option, for
               "cause" as defined in subdivision (b) of this Section 2; or (iv)
               termination by mutual agreement between the parties.

          (b)  As used in this Section, "cause" shall mean and be limited to
               gross negligence or willful misconduct of Employee in the
               performance of his duties, or conviction of a felony or a crime
               involving moral turpitude.

          (c)  In the event of a permanent disability, the contract will remain
               in effect until the start of long-term disability insurance
               coverage (3 months).

<PAGE>

3.        COMPENSATION

          (a)  The Company shall pay to Employee a base salary of $135,000 per
               year, payable in weekly installments.

          (b)  During the term of his employment, Employee shall be entitled to
               participate in employee benefit plans or programs of the Company,
               if any, to the extent his position, tenure, salary, age, health
               and other qualifications makes him eligible to participate,
               subject to the rules and regulations applicable thereto, which
               plans or programs will include, without limitation, health
               insurance benefits, performance-based options, an appropriate
               automobile allowance, and bonus programs, consistent with the
               reasonable past practices of the Company.

          (c)  The Company reserves the right to increase the compensation of
               the Employee, specified in this instrument, at any time or times
               hereafter and no such increase or adjustment shall operate as a
               cancellation of this Agreement, but merely as an amendment to
               Section 3, and all the other terms, provision, and conditions of
               this Agreement shall continue in force and effect as herein
               provided.

          (d)  The Company will review this contract for consideration of a one
               (1) year extension when contract is 60 days from expiration.

4.        EXPENSES

          The Company will reimburse Employee for direct out-of-pocket expenses
          properly incurred by him in his performance of this Agreement and
          provided that a written accounting is made to the Company by Employee.

5.        CONFIDENTIALITY AND NON-COMPETITION

          (a)  Employee acknowledges that as a consequence of his relationship
               with the Company, he has been and will continue to be given
               access to confidential information which may include the
               following types information: financial statements and related
               financial information with respect to the Company, trade secrets,
               computer programs, certain methods of operation, procedures,
               improvements, systems, customer lists, supplier lists and
               specifications, and other private and confidential materials
               concerning the Company's business (collectively, "Confidential
               Information"). Employee agrees that he shall maintain any
               Confidential Information in strictest confidence and shall not
               disclose any Confidential information to third parties during the
               terms of this agreement and after the termination hereof, however
               such termination shall occur, unless previously approved by the
               President or Chairman of AMG in writing.

               Notwithstanding the foregoing, nothing herein shall be construed
               as prohibiting Employee from disclosing any Confidential
               Information
<PAGE>

         (a) which, at the time of disclosure, Employee can demonstrate either
         was in the public domain and generally available to the public or
         thereafter became a part of the public domain and generally available
         to the public by publication or otherwise through no act of Employee;
         (b) which Employee can establish was independently developed by a third
         party who developed it without the use of the Confidential Information
         and who did not acquire it directly or indirectly from Employee under
         an obligation of confidence; (c) which Employee can show was received
         by him after the termination of this Agreement from a third party who
         did not acquire it directly or indirectly from the Company under an
         obligation of confidence; or (d) to the extent that Employee can
         reasonably demonstrate such disclosure is required by law or in any
         legal proceeding, governmental investigation, or other similar
         proceeding.

    (b)  Employee covenants and agrees that, in order to protect the company's
         interest in its business, operations and assets during the term of
         this Agreement and for a period of one (1) year following the
         termination of this Agreement, however the same shall occur, he will
         not, without prior written consent of the Company, directly or
         indirectly:

         (i)       engage anywhere in the United States, whether by virtue of
                   stock ownership, management responsibilities or otherwise,
                   in companies, business, organizations and/or ventures which
                   are directly or indirectly competitive with the business of
                   the Company as presently conducted or contemplated (the
                   "Business"); or
         (ii)      become interested, directly or indirectly, whether as
                   principal, owner, stockholder, partner, agent, officer,
                   director, employee, salesman, joint venture, consultant,
                   advisor, independent contractor or otherwise, in any person,
                   firm, partnership, association, venture, corporation or
                   entity engaging anywhere in the United State in the Business
                   or directly or indirectly in competition with the Company.

6.  INVENTIONS

    (a) Employee hereby sells, transfers and assigns to the Company, or to
        any person or entity designated by the Company, all of the entire right,
        title and interest of Employee in and to all inventions, ideas,
        disclosures and improvements, whether patented or unpatented, and
        copyrightable materials, made or conceived by Employee, solely or
        jointly, or in whole or in part, during or before the term hereof which
        (i) relate to methods, apparatus, designs, products, processes or
        devices sold, leased, used or under construction or development by the
        Company, or (ii) otherwise relate, pertain or are useful to the
        business, functions or operations of the Company as presently conducted
        or to be conducted by the Company, or (iii) arise (wholly or partly)
        from the efforts of Employee since 16th of August, 1991 or otherwise
        during the term hereof.

<PAGE>

    (b)  Employee shall communicate promptly and disclose to the Company, in
         such form as the Company requested, all information, details and data
         pertaining to the aforementioned inventions, ideas, disclosures and
         improvements; and whether during the term hereof or thereafter,
         Employee shall execute and deliver to the company such formal transfers
         and assignments and such other papers and documents as may be required
         of the Employee to permit the company or any person or entity
         designated by the Company to file and prosecute the patent applications
         and, as to copyrightable material, to obtain copyright thereon. Any
         invention by Employee within one year following the termination of this
         Agreement shall be deemed to fall within the provisions of this
         paragraph unless proved by Employee to have been first conceived and
         made following such termination.

7.  NO WAIVER

         The failure of any party to insist upon the strict performance of
         any of the terms, conditions or provisions of this Agreement shall not
         be construed as a waiver of relinquishment of future compliance
         therewith, and said terms, conditions and provisions shall remain in
         full force and effect. No interpretation, changes, modifications,
         terminations or waivers of any of the provisions of this Agreement
         shall be binding upon the Company or Employee unless in writing and
         signed by the person to be bound.

8.  RIGHTS, OBLIGATIONS AND ASSIGNMENT

         The rights and obligations of the Company under this Agreement
         shall inure to the benefit of, and shall be binding upon, its
         successors and assigns. The duties of Employee to any such successor
         entity shall not be greater than duties performed for the Company
         prior to such succession. Employee is prohibited from making any
         assignment of this Agreement.

9.  ENTIRE AGREEMENT

         This Agreement and the exhibits hereto embody the entire understanding
         between the parties hereto pertaining to the subject matter hereto and
         supersedes all prior agreements and understanding of the parties in
         connection therewith.

10. SEVERABILITY

         If any of the provisions of this Agreement shall for any reason be
         adjudged by any court of competent jurisdiction to be invalid or
         unenforceable, such judgement shall not affect, impair, or invalidate
         the remainder of this Agreement, but shall be confined in its
         operations to the provision of this Agreement directly involved in the
         controversy in which such judgment shall have been rendered.

<PAGE>

11. NOTICES

         Notices, other communications or deliveries required or permitted
         under this Agreement shall be in writing directed as follows:

         (a)       TO THE COMPANY AT:
                   Advanced Materials Group, Inc.
                   20211 South Susana Road
                   Rancho Dominguez, CA 90221
                   Attn: Steve Scott

         (b)       TO EMPLOYEE:
                   David A. Lasnier
                   30042 Happy Sparrow Lane
                   Laguna Niguel, CA 92677

                   WITH A COPY TO:
                   None

         The Parties may designate by notice to each other any new address
         for the purpose of this Agreement. Useless otherwise specified in this
         Agreement, all notices shall be effective when mailed postage prepaid
         by registered or certified mail, return receipt requested.

12. APPLICABLE LAW

         This Agreement shall be enforced and construed in accordance with
         the laws of the State of California.

13.  DISPUTES

         In the event any party brings legal proceedings to resolve a dispute
         hereunder, the prevailing party shall have the right to recover
         reasonable attorneys' fees and costs from the other. The term "legal
         proceedings" shall include appeals from the lower court judgment.

14.  PAYMENT ON TERMINATION

         If the Company terminates this Agreement other than for cause as
         defined in Section 2(b) of this Agreement, it shall pay Employee an
         amount equal to the amount set forth in Section 3(a) as an annual
         base salary divided by twelve and multiplied by the number of months
         remaining until the 1st day of August, 2001.

<PAGE>

15. HEADINGS

         The captions and headings contained in this Employment Agreement are
         for reference purposes only and shall not affect the interpretation or
         meaning of this Agreement.

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

ADVANCED MATERIALS GROUP, INC.

By: /s/ Steve Scott
   -------------------------------------
        Steve Scott

EMPLOYEE

By:  /s/ David A. Lasnier
    ------------------------------------
         David A. Lasnier

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