Document:

AMERICAN PROPERTY MANAGEMENT
                    2154 N.E. Broadway Portland, Oregon 97232
             Mailing Address: P.O. Box 12127, Portland, Oregon 97212
                       Phone 503-284-2147 Fax 503-287-1587

                                  OFFICE LEASE

            This Lease ("LEASE"), dated for reference purposes only,
                                February 13, 2002
                             is made by and between
        AMERICAN PROPERTY MANAGEMENT CORP. as agent for and on behalf of
                    WESTON INVESTMENT CO. LLC ("LESSOR"), and
                Harry Kraus, Individually and OJI Surgical, Inc.,
                       an Oregon corporation ("LESSEE").
          AMERICAN PROPERTY MANAGEMENT CORP. Account #C-O1-238-6251-05
                  LESSOR hereby leases to LESSEE the following:
  Suite #102 consisting of approximately 704 rentable square feet ("Premises")
                                (See Standard of
                         Measurement Section 1.1) (This
                     measurement includes a load factor for
                              the Building of 10%)
                       in the 1730 Skyline Office Building
      located at 1730 SW Skyline Blvd., Portland, Oregon 97221 ("Building")
                         for a term commencing March 8,
                         2002 ("Commencement Date") and
                        continuing through March 31, 2005
                               ("Expiration Date")
           at a Base Rental of $880.00 (U.S.) per month ("Base Rent")
              payable in advance on the first day of each month at
           2154 N.E. Broadway, Suite #200, Portland, Oregon 97232-1561
                            commencing March 8, 2002.

LESSOR and LESSEE covenant and agree as follows:

1.1 STANDARD OF MEASUREMENT

         a.)      Useable Square Footage

                  Is that area from the center of the tenant demising wall to
                  the center of the opposite tenant demising wall which is
                  established by the American National Standard Method of
                  Measurement of Office Floor Space (ANSI 265.1-1980) and the
                  Building Owners and Manager Association (BOMA).

         b.)      Load Factor

                  Is a percentage of all the Building common areas such as
                  Building lobby, elevator lobbies, common hallways, common
                  restrooms, common utility service closets, common conference
                  room, common canteen/kitchen lounge areas and designated
                  smoking areas. Not calculated is vertical floor penetrations
                  such as stairways, elevator shafts or mechanical shafts.

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         c.)      Rentable Square Footage

                  Is the calculated useable square footage plus a percentage of
                  the common area of the Building. The total of the two equal
                  rentable square footage.

                  Formula: 640 useable square feet + 10% Load Factor = 704
                  rentable square feet

                  Note: The actual common area square footage may exceed the
                  Load Factor of this Lease.

         d.)      These square footages are approximations only and may vary
                  from the actual square . footage. Prior to occupancy LESSEE
                  may inspect and measure the Premises to confirm the square
                  footage. As of occupancy LESSEE shall be deemed to have
                  accepted the Premises, and will be deemed to have waived any
                  objection to the square footage approximations set forth
                  herein.

2.1 DELIVERY OF POSSESSION

Should LESSOR be unable to deliver possession of the Premises on the date fixed
for the Commencement Date of the term, the Commencement Date will be deferred
and LESSEE shall owe no rent until receiving notice from' LESSOR tendering
possession to LESSEE. If possession is not so tendered within 90 days following
the Commencement Date of the term, then LESSEE may elect to cancel this LEASE by
providing written notice to LESSOR within 10 days following expiration of the 90
day period. LESSOR shall have no liability to LESSEE for delay in delivering
possession, nor shall such delay extend the term of this LEASE in any manner.

2.2 EARLY POSSESSION

If LESSEE occupies the Premises prior to said Commencement Date, such occupancy
shall be subject to all provisions of this LEASE, such occupancy shall not
advance the Expiration Date, and LESSEE shall pay rent for such period at the
initial monthly rates set forth above.

2.3 ACCEPTANCE OF PREMISES

Except as may be provided for in any exhibit, appendix or rider hereto,
occupancy shall be construed to mean that LESSEE expressly acknowledges that it
has fully inspected the Premises and accepts the Premises in their present
condition. LESSEE further acknowledges LESSOR shall not be responsible for any
alterations, improvements or repairs unless by written agreement of the parties,
attached to and made a part of this LEASE.

3.1 RENT PAYMENT

Upon LESSEE'S execution of the LEASE, LESSEE shall pay the Base Rent for the
first calendar month of the LEASE term for which rent is payable. LESSEE shall
pay the Base Rent for the Premises and any additional charges provided herein
without deduction or offset. Rent for any partial month during the lease term
shall be prorated to reflect the number of days during the month that LESSEE
occupies the Premises based on a thirty (30) day month/360 day year. Rent or any
additional charges not paid when due shall bear interest at the rate of
one-and-one-half percent (1 1/2%) per month until paid in full. LESSOR may at
its option impose a late charge of .10 for each $1 due or $50.00, whichever is
greater, for rent or other additional charges paid made more than 10 days after
its due date in lieu of interest for the first month of delinquency, without
waiving any other remedies available for default.

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4.1 SECURITY DEPOSIT

Concurrently with the execution of this LEASE by the LESSEE, LESSEE shall
deliver to LESSOR NINE HUNDRED SEVENTY DOLLARS AND 20/100'S ($970.20) as
security for the full, timely and faithful performance by LESSEE of every
covenant and condition of this LEASE. It is expressly understood and agreed the
security deposit is not an advance of rental deposit or 'a measure of LESSOR'S
damages in the case of a default. This deposit shall not bear interest. The
security deposit shall not be considered a trust fund. LESSOR does not represent
that LESSOR is acting as a trustee or in any fiduciary capacity in controlling
or using LESSEE'S security deposit as provided for herein. If LESSEE shall
default with respect to any covenant or condition of this LEASE, LESSOR may
apply the whole or part of such security deposit to the payment of any sum in
default or any other sum which LESSOR may be required to spend by reason of
LESSEE'S default. In such event, LESSEE shall upon demand immediately pay to
LESSOR the amount necessary to restore the security deposit to its original
amount. If LESSEE, complies with all of the covenants and conditions of this
LEASE, the security deposit or any balance thereof shall be returned to the
LESSEE within sixty (60) days after the Expiration Date of the lease term.

5.1 USE

LESSEE shall use the Premises for professional business office use only with no
retail sales or manufacturing and for no other purpose without LESSOR'S consent.
In connection with its use, LESSEE shall at its expense promptly comply with all
applicable laws, ordinances, rules and regulations of any public authority and
shall not annoy, obstruct, or interfere with the rights of the other tenants of
the Building. LESSEE shall create no nuisance nor allow any objectionable fumes,
noise, or vibrations to be emitted from the Premises. LESSEE shall not conduct
any activities that will increase LESSOR'S insurance rates for any portion of
the Building or that will in any manner degrade or damage the reputation of the
Building.

6.1 EQUIPMENT

LESSEE shall install in the Premises only such office equipment as is customary
for general office use and shall not overload the weight capacity of the floors
or the capacity of the electrical circuits of the Premises or Building or alter
the plumbing or wiring of the Premises or Building. LESSOR must approve, in
advance, the location and manner of installing any electrical, heat generating
or communication equipment or exceptionally heavy articles. Any additional air
conditioning required because of heat generating equipment or special lighting
installed by the LESSEE shall be installed and maintained at LESSEE'S expense.
LESSOR shall have no obligation to permit the installation of equipment by any
telecommunications provider whose equipment is not then servicing the building.

7.1 SIGNS

No signs, awnings, antennas, or other apparatus shall be painted on or attached
to the Building or anything placed on any glass or woodwork of the Premises or
positioned so as to be visible from outside the Premises without LESSOR'S
written approval as to design, size, location and color. All signs installed by
LESSEE shall comply with LESSOR'S standards for signs and all applicable codes
and ordinances and all signs and sign hardware shall be removed upon termination
of this LEASE with the sign location restored to its former state unless LESSOR
elects to retain all or any portion thereof. LESSOR shall provide and install
building standard signage in the name of the LESSEE as it appears in this LEASE
for the Building lobby and suite entry. LESSEE shall be responsible for all
signage expense if the LEASE term is twelve months or less. Any changes
thereafter requested by LESSEE and approved by LESSOR shall be at LESSEE'S sole
expense.

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8.1 UTILITIES AND SERVICES

LESSOR shall furnish heat, electricity, elevator service, and if the Premises
are air conditioned, air conditioning during the normal Buildings hours of 7:00
A.M. to 6:00 P.M., Monday through Friday, except holidays and 7:00 A.M. to 2:00
P.M. Saturdays, except holidays. The acceptable temperature range for the
Premises is between 67 degrees to 75 degrees Fahrenheit, as measured from the
thermostat level which is approximately sixty inches (60") above the floor,
unless there are extreme weather conditions which create an unusually hot or
cold condition. Janitorial service will be provided in accordance with the
regular schedule of the Building, which schedule and service may change from
time to time. LESSEE shall comply with all government laws and regulations
regarding the use or reduction of use of utilities on the Premises.
Interruption of services or utilities shall not be deemed an eviction or
disturbance of LESSEE'S use and possession of the Premises, render LESSOR liable
to LESSEE for damages, or relieve LESSEE from performance of LESSEE'S
obligations under this LEASE, but LESSOR shall take all reasonable steps to
correct any interruptions in service. Electrical service furnished will be 110
volts unless different service already exists in the Premises. The LESSOR shall
only provide repair and maintenance to building standard florescent light
fixtures. The LESSOR shall not be responsible for repair, maintenance (including
light bulb replacement) for non-building standard light fixtures. LESSEE shall
provide its own surge protection for power furnished to the Premises.

8.2 EXTRA USAGE

If LESSEE uses excessive amounts of LESSOR provided utilities and/or services of
any kind because of operation during normal Building hours and/or outside of
normal Building hours, high demands from office machinery and equipment,
nonstandard lighting or any other cause, LESSOR may impose a reasonable charge
for supplying such extra utilities and/or services, which charge shall be
payable monthly by LESSEE in conjunction with rent payments. In case of dispute
over any extra charge under this paragraph, LESSOR shall designate a qualified
independent engineer whose decision shall be conclusive on both parties. LESSOR
and LESSEE shall each pay one-half of the cost of such determination.

LESSEE shall be solely responsible for and promptly pay for the removal of all
debris, cardboard, all and any other refuse generated in LESSEE'S moving into
premises including the replacement of office furniture and equipment during
tenancy and in vacating the Premises. Upon request, LESSOR shall supply LESSEE
the name of a recycling company to remove recyclable items. LESSEE shall pay
such additional charge in full upon receipt of statement.

9.1 MAINTENANCE AND REPAIRS

LESSOR shall have no liability for failure to perform required maintenance and
repair unless written notice of the needed maintenance or repair is given by
LESSEE and LESSOR fails to commence efforts to remedy the problem in a
reasonable time and manner. LESSOR shall have the right to erect scaffolding and
other apparatus necessary for the purpose of making repairs, and LESSOR shall
have no liability for interference with LESSEE'S use because of repairs and
installations, nor shall LESSOR be required to provide LESSEE with advance
written notice of LESSOR'S access to the Premises. LESSEE shall have no claim
against LESSOR for any interruption or reduction of services or interference
with LESSEE'S occupancy, and no such interruption or reduction shall be
construed as a constructive or other eviction of LESSEE. Repair of damage caused
by negligent or intentional acts or breach of this LEASE by LESSEE, its
employees, or invitees shall be at LESSEE'S expense.

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The LESSOR shall only provide repair and maintenance to building standard
florescent light fixtures. The LESSOR shall not be responsible for repair,
maintenance (including light bulb replacement) for non-building standard light
fixtures.

10.1 ALTERATIONS

LESSEE shall not make any alterations, additions, or improvements to the
Premises, change the color or character of the interior, or install any wall or
floor covering without LESSOR'S prior written consent. Any such additions,
alterations, or improvements, except for removable machinery and unattached
moveable trade fixtures shall at once become part of the realty and belong to
LESSOR. LESSOR may at its option require that LESSEE remove any alterations and
restore the Premises to the original condition upon termination of this LEASE.
LESSOR shall have the right to approve the contractor used by LESSEE for any
work in the Premises, and to post notices of nonresponsibility in connection
with any work being performed by LESSEE in the Premises. LESSEE agrees that any
Building or fixture modifications within the LESSEE'S Premises that is required
to accommodate the LESSEE, employees or invitees of the LESSEE, as required by
the Americans with Disabilities Act (ADA), will be at the expense of the LESSEE.

The LESSEE shall not alter any lock or install a new or additional lock or any
bolt on any door of the Premises without prior written consent of the LESSOR. In
the event LESSEE desires to change or modify door locks on the Premises, LESSEE
shall notify LESSOR in advance and shall use LESSOR'S authorized locksmith and
LESSEE shall bear such cost.

11.1 INDEMNITY

LESSEE shall not allow any liens to attach to the Building or LESSEE'S interest
in the Premises as a result of its activities. LESSEE shall indemnify and defend
LESSOR from any claim, liability, damage, or loss occurring on the Premises,
arising out of any activity by LESSEE, its agents, or invitees or resulting from
LESSEE'S failure to comply with any term or condition of this LEASE. LESSOR
shall have no liability to LESSEE because of loss or damage caused by the acts
or omissions of other tenants of the Building, or by third parties.

12.1 INSURANCE

LESSEE shall carry liability insurance in the amount of no less than
$1,000,000.00 and which insurance shall have an endorsement naming LESSOR and
LESSOR'S agent, if any, as an additional insured and covering the liability
insured under Paragraph 11.1 of this LEASE. LESSEE shall furnish a certificate
evidencing such insurance which shall state that the coverage shall not be
canceled or materially changed without 10 days advance written notice to LESSOR
and LESSOR'S agent, if any, and a renewal certificate shall be furnished at
least 10 days prior to expiration of any policy. LESSEE is responsible for their
own fire insurance, see Section 14.1.

13.1 FIRE OR CASUALTY

"Major Damage" means damage by fire or other casualty to the Building or the
Premises which causes the Premises or any substantial portion of the Building to
be unusable, or which will cost more than 25 percent (25%) of pre-damage value
of the Building to repair, or which is not covered by insurance. In case of
Major Damage, LESSOR may elect to terminate this LEASE by notice in writing to
LESSEE within 60 days after such date. If this LEASE is not terminated following
Major Damage, LESSOR shall promptly restore the Premises to the condition
existing just prior to the damage. LESSEE shall promptly restore all damage to
tenant improvements or alterations installed or paid by LESSEE or pay the cost
of such restoration to LESSOR if LESSOR elects to do the restoration of such
improvements. Rent shall be reduced from the date of damage until the date
restoration work being performed by LESSOR is substantially complete, with the
reduction to be in proportion to the area of the Premises not useable by LESSEE.

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14.1 WAIVER OF SUBROGATION

LESSEE shall be responsible for insuring its personal property and trade
fixtures located on the Premises. Neither LESSOR nor LESSEE shall be liable to
the other for any loss or damage caused by fire, water damage, sprinkler
leakage, or any of the risks that are or could be covered by a standard all risk
insurance policy with an extended coverage endorsement, or for any business
interruption, and there shall be no subrogated claim by one party's insurance
carrier against the other party arising out of any such loss.

15.1 EMINENT DOMAIN

If a condemning authority takes title by eminent domain or by agreement in lieu
thereof to the entire Building or a portion sufficient to render the Premises
unsuitable for LESSEE'S use, then either party may elect to terminate this LEASE
effective on the date that possession is taken by the condemning authority. Rent
shall be reduced for the remainder of the term in an amount proportionate to the
reduction in the area of the Premises caused by the taking. All condemnation
proceeds shall belong to LESSOR, and LESSEE shall have no claim against LESSOR
or the condemnation award because of the taking.

16.1 ASSIGNMENT AND SUBLETTING

This LEASE shall bind and inure to the benefit of the parties, their respective
heirs, successors, and assigns, provided that LESSEE shall not assign its
interest under this LEASE or sublet all or any portion of the Premises without
first obtaining LESSOR'S consent in writing. This provision shall apply to all
transfers by operation of law including but not limited to mergers and changes
in control of LESSEE. No assignment or subletting shall relieve LESSEE of its
obligation to pay rent or perform other obligations required by this LEASE, and
no consent to one assignment or subletting shall be a consent to any further
assignment or subletting. LESSOR shall not unreasonably withhold its consent to
any assignment, or to subletting provided the subrental rate or effective rental
paid by the assignee is not less than the current scheduled rental rate of the
Building for comparable space and the proposed LESSEE is compatible with
LESSOR'S normal standards for the Building. If LESSEE proposes a subletting or
assignment to which LESSOR is required to consent under this paragraph, LESSOR
shall have the option of terminating this LEASE and dealing directly with the
proposed sublessee or assignee, or any third party. If an assignment or
subletting is permitted, any cash profit, or the net value of any other
consideration received by LESSEE as a result of such transaction shall be paid
to LESSOR promptly following its receipt by LESSEE. LESSEE shall pay any costs
incurred by LESSOR in connection with a request for assignment or subletting,
including reasonable attorneys' fees.

17.1 DEFAULT

                  Any of the following shall constitute a default by LESSEE
                  under this LEASE:

         (a)      LESSEE'S failure to pay rent or any other charge under this
                  LEASE within 10 days after it is due.

         (b)      LESSEE'S failure to comply with any other term or condition
                  within 10 days following written notice from LESSOR specifying
                  the noncompliance. If such noncompliance cannot be cured
                  within this 10 day period, the provision shall be satisfied if
                  LESSEE commences correction within such period and thereafter
                  proceeds in good faith and with reasonable diligence to effect
                  compliance as soon as possible. Time is of the essence in the
                  performance of this LEASE.

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         (c)      The making by LESSEE of any general assignment or general
                  arrangement for the benefit of creditors; or the filing by or
                  against LESSEE of a petition to have LESSEE adjudged a
                  bankrupt, or a petition or reorganization or arrangement under
                  any law relating to bankruptcy (unless, in the case of a
                  petition filed against LESSEE, the same is dismissed within
                  sixty (60) days); or the appointment of a trustee or a
                  receiver to take possession of substantially of all LESSEE'S
                  assets located at the Premises or of LESSEE'S interest in this
                  LEASE, where possession is not restored to LESSEE within
                  thirty (30) days; or the attachment, execution, or other
                  judicial seizure of substantially all of LESSEE'S assets
                  located at the Premises or of LESSEE'S interest in this LEASE,
                  where such seizure is not discharged within thirty (30) days.

         (d)      Assignment or subletting by LESSEE in violation of Paragraph
                  16.1.

         (e)      Vacation or abandonment of the Premises without the written
                  consent of LESSOR.

17.2 REMEDIES FOR DEFAULT

                  In case of default as described in Paragraph 17.1, LESSOR
                  shall have the right to the following remedies which are
                  intended to be cumulative and in addition to any other
                  remedies provided under applicable law:

         (a)      LESSOR may terminate the LEASE and retake possession of the
                  Premises. Following such retaking of possession, efforts by
                  LESSOR to relet the Premises shall be sufficient if LESSOR
                  follows its usual procedure for finding tenants for the space
                  at rates not less than the current rates for other comparable
                  space in the Building. If LESSOR has other vacant space in the
                  Building, prospective tenants may be placed in such other
                  space without prejudice to LESSOR'S claim to damages or loss
                  of rental from LESSEE.

         (b)      LESSOR may recover all damages caused by LESSEE'S default
                  which shall include an amount equal to rentals lost because of
                  the default, lease commissions paid for this LEASE, the
                  unamortized cost of any tenant improvements installed by
                  LESSOR to meet LESSEE'S special requirements and the cost of
                  any clean up, refurbishing, lock changes and removal of the
                  LESSEE'S property and fixtures. LESSOR may sue periodically to
                  recover damages as they occur throughout the lease tern, and
                  no action for accrued damages shall bar a later action for
                  damages subsequently accruing. LESSOR may elect in any one
                  action to recover accrued damages plus damages attributable to
                  the remaining tern of the LEASE. Such damages shall be
                  measured based upon the rent due under this LEASE for the
                  remainder of the term, discounted to the time of judgment at
                  the prevailing interest rates on judgments.

         (c)      LESSOR may make any payment or perform any obligation which
                  LESSEE has failed to perform, in which case LESSOR shall be
                  entitled to recover from LESSEE upon demand all amounts so
                  expended, plus interest from the date of the expenditure at
                  the rate of one-and-one-half percent (1 1/2%) per month. Any
                  such payment or performance by LESSOR shall not waive LESSEE'S
                  default.

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18.1 SURRENDER

On the Expiration Date or early termination of this LEASE, LESSEE shall deliver
all keys to LESSOR to avoid a minimum lock change charge of $80.00 per lock and
surrender the Premises broom clean and in the same condition as at the
commencement date of the term subject only to reasonable wear from ordinary use.
LESSEE shall remove all of its furnishings and trade fixtures that remain its
property and restore all damage resulting from such removal. Failure to remove
shall be an abandonment of the property and LESSOR may dispose of it in any
manner without liability and LESSEE shall pay a reasonable charge for such
removal and disposal. If LESSEE fails to vacate the Premises when required,
including failure to remove all its personal property, LESSOR may elect either:
(I) to treat LESSEE as a tenant from month to month, subject to all the
provisions of this LEASE except that rent shall be one-and-one-half (1 1/2)
times the total rent being charged when the lease term expired; or (2) to eject
LESSEE from the Premises and recover damages caused by wrongful holdover. During
the period of sixty (60) days prior to the termination date of this LEASE, the
LESSOR may post on said premises or in the windows thereof signs of appropriate
size notifying the public that the premises are "For Lease."

19.1 REGULATIONS

LESSOR shall have the right (but shall not be obligated) to make, revise and
enforce regulations or policies consistent with this LEASE for the purpose of
moving, use of common areas, prohibiting smoking or promoting safety, health,
order, economy, cleanliness, and good service to all tenants of the Building.
All such regulations and policies shall be complied with as if part of this
LEASE.

20.1 ACCESS

During times other than normal Building hours LESSEE'S officers and employees or
those having business with LESSEE may be required to identify themselves or show
passes in order to gain access to the Building. LESSOR shall have no liability
for permitting or refusing to permit access by anyone. LESSOR shall have the
right to enter upon the Premises at any time by passkey or otherwise to
determine LESSEE'S compliance with this LEASE, to perform necessary repairs to
the Building or the Premises, examine the condition of the Premises, to show the
Premises to any prospective tenant or purchasers or for any other lawful
purpose. Except in the case of emergency, such entry shall be at such times and
in such manner as to minimize interference with the reasonable business use of
the Premises by LESSEE.

21.1 FURNITURE AND BULKY ARTICLES

LESSEE shall move furniture and bulky articles in and out of the Building or
make independent use of the elevators only at times approved by LESSOR following
at least 24 hours' advance written notice to LESSOR of the intended move. Items
of 1,000 pounds or greater shall require LESSOR'S approval.

22.1 NOTICES

Notices between the parties relating to this LEASE shall be in writing,
effective when delivered, or facsimile, or if mailed, effective on the second
day following mailing, postage prepaid, to the address for the party stated in
this LEASE or to such other address as either party may specify by written
notice to the other. Notice to LESSEE may always be delivered to the Premises.
Rent shall be payable to LESSOR at the LESSOR'S address and in the same manner,
but shall be considered paid only when received.

23.1 SUBORDINATION

This LEASE shall be subject and subordinate to any mortgages, deeds of trust, or
land sale contracts (hereafter collectively referred to as encumbrances) now
existing against the Building. At LESSOR'S option this LEASE shall be subject
and subordinate to any future encumbrance hereafter placed against the Building
(including the underlying land) or any modifications of existing encumbrances,
and LESSEE shall execute such documents as may reasonably be requested by LESSOR
or the holder of the encumbrance to evidence this subordination.

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24.1 TRANSFER OF BUILDING

If the Building is sold or otherwise transferred by LESSOR or any successor,
LESSEE shall attorn to the purchaser or transferee and recognize it as the
LESSOR under this LEASE, and, provided the purchaser assumes all obligations
hereunder, the transferor shall have no further liability hereunder.

25.1 ESTOPPELS

Either party will within 20 days after written notice from the other execute,
acknowledge and deliver to the other party a certificate certifying whether or
not this LEASE has been modified and is in full force and effect; whether there
are any modifications or alleged breaches by any other party; the dates to which
rent has been paid in advance, and the amount of any security deposit, Lease
Consideration, or prepaid rent; and any other facts that may reasonably be
requested. Failure to deliver the certificate within the specified time shall be
conclusive upon the party of whom the certificate was requested that the lease
is in full force and effect and has not been modified except as may be
represented by the party requesting the certificate. If requested by the holder
of any encumbrance, or any ground lessor, LESSEE will agree to give such holder
or LESSOR notice of and an opportunity to cure any default by LESSOR under this
LEASE.

26.1 ATTORNEYS FEES

In any litigation arising out of this LEASE, the prevailing party shall be
entitled to recover, in addition to costs and disbursements, attorneys' fees at
trial and on any appeal. If LESSOR incurs attorneys' fees because of a default
by LESSEE, LESSEE shall pay all such fees whether or not litigation is filed.

27.1 QUIET ENJOYMENT

LESSOR warrants that so long as LESSEE complies with all terms of this LEASE,
'it shall be entitled to peaceable and undisturbed possession of the Premises
free from any eviction or disturbance by LESSOR. Neither LESSOR nor its managing
agent shall have any liability to LESSEE for loss or damages arising out of the
acts, including criminal acts, of other tenants of the Building or third
parties, nor any liability for any reason which exceeds the value of its
interest in the Building.

28.1 COMPLETE AGREEMENT

This LEASE and the attached Exhibits and Schedules constitute the entire
agreement of the parties and supersede all prior written and oral agreements and
representations. Neither LESSOR nor LESSEE is relying on any representations
other than those expressly set forth herein. There are no implied covenants or
other agreements between the parties except as expressly set forth in this
LEASE.

29.1 CHAIR MATS

LESSEE shall provide, at LESSEE'S expense, chair mats for all desk rolling
chairs within the leased space and will be responsible for carpet wear caused by
chairs which could have been avoided by the use of chair mats.

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30.1 PARKING

LESSEE shall have the nonexclusive use of three (3) parking spaces for every 640
useable square feet of leased space for the use during normal business hours.
LESSOR has sole control of parking and may designate areas for patrons of the
property/Building and assign LESSEE and employees of the LESSEE to designated
parking areas. LESSEE and employees shall park their cars only in these areas
designated for the purpose by the LESSOR. LESSEE shall furnish to LESSOR license
numbers of vehicles used by the LESSEE and the employees of the LESSEE, and
notify LESSOR of any changes within five (5) days. If LESSEE or its employees
fail to park their vehicles in designated parking areas, then LESSOR may charge
LESSEE twenty dollars ($20.00) per day per vehicle for each or partial day, in
any area other than those designated, or if the area is signed as a towing area,
to have the vehicle(s) towed at the LESSOR'S option and at the expense of the
LESSEE and its employees. LESSEE acknowledges and agrees that LESSOR shall not
be responsible for the enforcement of any parking rules or regulations in
connection with reserved parking spaces contained in this LEASE and/or in the
Building rules.

There shall be no overnight storage of vehicles or trailers in the parking areas
or outside of Premises. LESSOR may remove vehicle from property and LESSEE shall
bear the cost of such removal.

31.1 COMMON AREA

Where the Building has a common entrance or meeting room, the LESSEE may use
these facilities at no cost on a first-come, first-serve basis by contacting the
LESSOR and reserving the room in advance. Abusing the privilege of the rooms may
result in the loss of said use.

32.1 NOTICE TO OWNERS, BUYERS, AND TENANTS REGARDING HAZARDOUS WASTES OR
     SUBSTANCES UNDERGROUND STORAGE TANKS

Comprehensive Federal and State laws and regulations have been enacted in the
last few years in an effort to develop controls over the use, storage, handling,
cleanup, removal and disposal of hazardous wastes or substances. Some of these
laws and regulations, such as, for example, the so-called "Superfund Act",
provide for broad liability schemes wherein an owner, tenant or other user of
the property may be liable for cleanup costs and damages regardless of fault.
Other laws and regulations set standards for the handling of asbestos or
establish requirements for the use, modification, abandonment or closing of
underground storage tanks.

It is not practical or possible to list all such laws and regulations in this
LEASE. Therefore, owners, buyers and tenants are urged to consult legal counsel
to determine their respective rights and liabilities with respect to the issues
described in this notice as well as all other aspects of the proposed
transaction. If hazardous wastes or substances have been, or are going to be
used, stored, handled or disposed of on the property, or if the property has or
may have underground storage tanks, it is essential that legal and technical
advice be obtained to determine, among other things, what permits and approvals
have been or may be required, if any, the estimated costs and expenses
associated with the use, storage, handling, cleanup, removal or disposal of the
hazardous wastes or substances and what contractual provisions and protections
are necessary or desirable. It may also be important to obtain expert assistance
for site investigations as to the likelihood of hazardous wastes or substances,
or underground storage tanks being on the property.

Although LESSOR will disclose any knowledge it actually possesses with respect
to the existence of hazardous wastes or substances, or underground storage tanks
on the property, LESSOR has not made investigations or obtained reports
regarding the subject matter of this notice, except as may be described in a
separate written document signed by LESSOR. LESSOR makes no representations
regarding the existence or nonexistence of hazardous wastes or substances, or
underground storage tanks on the property. You should contact a professional,
such as a civil engineer, geologist, industrial hygienist or other persons with
experience in these matters to advise you concerning the property.

                                      -10-
<PAGE>

The term "hazardous wastes or substances" is used in this notice in its very
broadest sense and includes, but is not limited to petroleum base products,
paints and solvents, lead cyanide, DDT, printing inks, acids, pesticides,
ammonium compounds, asbestos, PCBs and other chemical products. Hazardous wastes
or substances and underground storage tanks may be present on all types of real
property. This notice is therefore meant to apply to any transaction involving
any type of real property, whether improved or unimproved.

33.1 MODIFICATION

This LEASE may not be modified except by endorsement in writing attached to this
LEASE, dated and signed by all the parties hereto, and LESSOR shall not be bound
by any oral or written statement of any servant, agent, or employee modifying
this LEASE.

34.1 PARTIES AFFECTED

The rights, liabilities and remedies provided for herein shall extend to the
heirs, legal representatives, successors and, so far as the terms of this LEASE
permit, assigns of the parties hereto, and the words "LESSOR" and "LESSEE" and
their accompanying verbs or pronouns, wherever used in this LEASE, shall apply
equally to all persons, firms, or corporations which may be or become parties
hereto.

35.1 SECURITY

LESSEE and not LESSOR, is responsible for security of the Premises. Any breach
in security of the Premises, common areas, common access doors, and/or elevators
shall not constitute an eviction of the LESSEE or relieve LESSEE from any of
LESSEE'S obligations under this LEASE. All tenants shall have the responsibility
for maintaining the security to common access. LESSOR may modify the type or
amount of security measures or services provided to the Building or the Premises
at any time without notice.

36.1 RIGHT TO RELOCATE

LESSOR hereby reserves the right at any time during the term hereof to change
the location of the Premises in the Building or other acceptable property as may
be required. In the event LESSOR elects to exercise the foregoing option it
shall advise LESSEE with sixty (60) days prior written notice of its intention.
If LESSEE does not accept relocation space this LEASE will terminate at end of
sixty (60) day notice period. LESSEE hereby agrees to be bound by its election
to relocate or terminate this LEASE and, further, to execute upon receipt from
LESSOR, whatever amendments or other instruments may be required to correctly
reflect the foregoing changes and/or alterations. LESSOR shall relocate LESSEE
at LESSOR'S sole expense. LESSEE shall be relocated to a premise of like kind
and quality.

37.1 COST-OF-LIVING ADJUSTMENT (CPI)

The Base Rental will be adjusted on the rental adjustment dates described in
Section 37.2 based on the following factors:

The percentage increase in the yearly Consumer Price Index for U.S. City average
(all urban consumers), as of January 2002 and the same Consumer Price Index as
of January 2003, and on the same month of each year of the LEASE term. Such
information will be secured from the U.S. Bureau of Labor Statistics. Said
increase shall be subject to a minimum annual increase of 3% and a maximum
annual increase of 5%.

                                      -11-
<PAGE>

37.2 RENTAL ADJUSTMENT DATES

April 1, 2003
April 1, 2004

37.3 UTILITY ADJUSTMENT

LESSEE shall pay as Additional Rent, one (1) time per year, LESSEE'S
proportionate share of any increase in basic utility costs for the Building.

The base period shall be FEBRUARY 2001 TO JANUARY 2002, during which time the
actual utility costs were $ TO BE DETERMINED (this amount shall be provided
after LEASE signing date). The comparison period shall be defined as the twelve
calendar month period directly following the base period and every consecutive
twelve calendar month period thereafter. The actual utility costs shall be
defined as all Building meter accounts paid by the Lessor. For the purposes of
the utility adjustment, the adjusted Building size is 19,474 square feet and the
LESSEE'S pro-rata share is 3.6%.

The one (1) time per year utility payment, if any, shall be paid by the LESSEE
EVERY APRIL 1 STARTING APRIL 1, 2003 and shall be calculated as follows:

First, before any comparison of utility costs is made, the adjusted actual
entire Building base period utility cost paid by the Lessor shall be increased
by the CPI percentage change for the same period (see Section 37.1) to create an
"adjusted" base amount. Next, the "adjusted" base period utility amount shall be
subtracted from the comparison period adjusted actual entire Building utility
cost. Last, the difference shall be multiplied by the LESSEE'S pro-rata share.
This amount will be due and payable as a one (1) time per year Additional Rent
charge paid by the LESSEE EVERY APRIL 1 STARTING APRIL 1, 2003. An example is as
follows:

EXAMPLE.
-------

1.)   Actual Building Size ..............................20,000 rentable sq. ft.

2.)       Building Tenants who pay their utilities direct
          on separate meters or separately read submeters
          ............................................... 2.500 rentable sq, ft.
3.)   Adjusted Building Size ............................17,500 rentable sq. ft.
4.)       LESSEE'S Premises =                             1,000 rentable sq. ft.
5.)       LESSEE'S pro-rata share =                                         5.7%
6.)       Actual Utility Costs during Base Period for
          Entire Building .............................$17,500.00 ($1.00/rsf/yr)
7.)   CPI Increase ........................................................ x 3%
8.)   "Adjusted" Utility Costs Base Period ...........................$18,025.00
9.)       Actual Utility Costs during Comparison Period
          for Entire Building .........................$19.609.00 (12% increase)
10.)      Difference between Comparison Period and
          Adjusted. Base Period.......................................$ 1,575.00
11.)  Tenant's annual Pro-rata Share 5.7% or $89.78, which is a one (1) time per
      year payment made by the LESSEE.

                                      -12-
<PAGE>

38.1 SMOKING -ENTIRE

NON-SMOKING BUILDING

The Building in which the Premises is located has been designated as an entire
NON-SMOKING Building. This includes a areas of the Building, both common areas
as well as individual tenant spaces. Thus, smoking in the Premises is not
permitted. Because of the fact that some tenants' leases were in existence prior
to the adoption of the entire building non-smoking policy, these tenants have
the right, if they choose, to smoke in their Premises only, but do have a LEASE
obligation to provide smokeless ashtrays and/or an air purification system that
will filter air within the space to the extent that it is economically feasible.
LEASES for all new tenants moving into the Building will incorporate the entire
non-smoking Building policy and will prohibit these new tenants under their
LEASE from smoking in all areas of the Building.

39.1 WAIVER

Any waiver by the LESSOR of any breach of any covenant herein contained to be
kept and performed by the LESSEE shall not be deemed or considered as a
continuing waiver, and shall not operate to bar or prevent the LESSOR from
declaring a forfeiture for any succeeding breach, either of the same condition
or covenant otherwise.

40.1 PERSONAL GUARANTY

See Exhibit "A"

The obligations of the LESSEE under this LEASE are being personally guaranteed
by HARRY KRAUS.

41.1 INTERIOR DESIGN & MODIFICATION

See Exhibit "B-1" and "B-2" Space Plan

42.1 LESSOR AGREED TENANT

IMPROVEMENTS

See Exhibit "C" Interior Space Work Agreement

If any provisions contained in this Exhibit "C" Interior Space Work Agreement
are inconsistent with any other provisions contained in this LEASE (ie: Exhibit
"B-1" or "B-2" Space Plan), the provisions contained in this

Exhibit "C" Interior Space Work Agreement shall control.

43.1 LESSEE AGREED IMPROVEMENTS

See Exhibit "D"
None Required

                                      -13-
<PAGE>

44.1 FLOOR PLAN

See Exhibit "E" Floor Plan

45.1 TELEPHONES

LESSEE agrees, at its expense, to provide voice and data wiring to the Premises
and appropriate common areas. LESSEE agrees to put any equipment associated with
LESSEE'S voice and data system in the Premises. LESSEE agrees that LESSOR shall
not be liable for any damages or other liability incurred by LESSEE or any other
parties as a result of LESSEE'S wiring the Premises for voice and data or the
existing condition of any voice and data wiring or system. LESSEE further agrees
to indemnify and hold harmless LESSOR from any and all liability or claims of
LESSEE or others arising or resulting from LESSEE'S wiring of the Premises for
voice and data communications.

46.1 TIME IS OF THE ESSENCE

LESSOR and LESSEE acknowledge that time is of the essence in the execution of
this LEASE in order to allow LESSOR adequate time to complete the agreed upon
Tenant Improvements. If the LEASE is not signed, returned (with Security Deposit
and prepaid rent) and accepted by the LESSOR before 12:00 noon FEBRUARY 15,
2002, then LESSEE understands that the Tenant Improvements described in Exhibit
"B-1" and "B-2" Space Plan and Exhibit "C" Interior Space Work Agreement may not
be completed by the Lease Commencement date and LESSEE shall not tale possession
of Premises until said Tenant Improvements are completed.

47.1 EXPIRATION OF OFFER

This offer to lease shall be null and void at the sole option of the LESSOR if
not returned to LESSOR signed by LESSEE in an acceptable form to LESSOR and
accompanied by appropriate funds by FEBRUARY 15, 2002.

In construing of this LEASE, it is understood that the LESSOR or the LESSEE may
be more than one person; that if the context so requires, the singular pronoun
shall be taken to mean and include the plural, the masculine, the feminine, and
the neuter, and that generally all grammatical changes shall be made, assumed
and implied to make the provisions hereof apply equally to corporations and to
individuals.

IN WITNESS WHEREOF, the respective parties have executed this instrument in
duplicate on this, the day, the month, and year first hereinbelow written, any
corporation signature being by authority of its Board of Directors.

LESSOR:                                             By:
AMERICAN PROPERTY MANAGEMENT CORP.                  Douglas D. Lindholm
as agent for and on behalf of
WESTON INVESTMENT CO.                               Vice President of Commercial
(Federal Tax IN 93-1173413*)                             Property
*Lessee need not supply Lessor a Federal 1099
 Form Address for Notices:
       P.O. Box 12127                               DATE:
       Portland, Oregon 97212-0127

                                      -14-
<PAGE>

LESSEE:                                             By:

Harry Kraus, Individually                            Harry Kraus, Individually
Address for Notices:                                 DATE:

1730 SW Skyline Blvd., Suite #102

Portland, Oregon 97221 NOTARY:
STATE OF                             )
                                ss.
County of                            )

The foregoing instrument was acknowledged before me this                  day of
                        , 200 , by the above

named
to be his/her voluntary act and deed.

Notary Public for My Commission Expires:

                                      -15-
<PAGE>

EXHIBIT "A"

                                PERSONAL GUARANTY

I, Harry Kraus, absolutely and unconditionally guaranty punctual payment of all
rent and prompt performance of all other obligations under the terms of this
LEASE, between AMERICAN PROPERTY MANAGEMENT CORP. as agent for and on behalf of
WESTON INVESTMENT CO. LLC, the LESSOR and HARRY KRAUS, INDIVIDUALLY AND OJI
Surgical, Inc., an Oregon corporation, the LESSEE, for the space located at 1730
SW Skyline Blvd., Suite #102, Portland, Oregon 97221, and it is understood and
agreed that LESSOR would not enter into this LEASE but for the execution of the
Guaranty by the undersigned Guarantor(s). It is further guaranteed and
represented that the undersigned is a shareholder, director, officer and/or is
financially interested in the entity which is the above named LESSEE. The
undersigned waives notice of acceptance by LESSOR and agrees to remain bound by
this Guaranty including any extension or renewals of the LEASE hereby
guaranteed.

By:

Harry Kraus

Drivers License #
State Issued:
Date of Birth:-/,

/                                      /

Social Security #

Date:

NOTARY:

STATE OF                               )

County of

      The foregoing instrument was acknowledged before me this
day of                         , 200_, by the above
named

to be his/her voluntary act and deed.

Notary Public for My Commission Expires:

                                      -16-
<PAGE>

                            EXHIBIT "B-1" SPACE PLAN
     Harry Kraus, Individually and OJI Surgical, Inc., an Oregon corporation
            1730 SW Skyline Blvd., Suite #102, Portland, Oregon 97221
                            Account #C-01-238-6251-05

1730 BUILDING
SUITE 102

1730 SW SKYLINE BLVD.
PORTLAND, OR 97221

Acct. #6251

640 USEABLE SQ.FT.

JUNE 11, 1996
SCALE: 1/8 = 1'

                                          [IMAGE]

Any changes to this Exhibit "B-1" Space Plan are subject to LESSOR'S approval.
Any changes to this plan shall be at LESSEE'S sole cost and expense, shall not
delay the Commencement Date, and may delay LESSEE'S occupancy.

If any provision contained in Exhibit "C" Interior Space Work Agreement is
inconsistent with any other provision contained in this LEASE (ie: Exhibit "B-1"
or "B=2" Space Plan), the provisions contained in Exhibit "C" Interior Space
Work Agreement shall control.

                                      -17-
<PAGE>

                            EXHIBIT "B-2" SPACE PLAN
     Harry Kraus, Individually and OJI Surgical, Inc., an Oregon corporation
            1730 SW Skyline Blvd., Suite #102, Portland, Oregon 97221
                            Account #C-O1-238-6251-05

           EXHIBIT "B-1" SPACE PLAN TO BE ATTACHED AFTER WALK THROUGH
               AND SIGN OFF BY LESSEE, LESSOR'S CONTRACTOR AND THE
                             PROPERTY ADMINISTRATOR.

Any changes to the Exhibit "B-1" Space Plan are subject to LESSOR'S approval.
Any changes shall be at LESSEE'S sole cost and expense, shall not delay the
Commencement Date, and may delay LESSEE'S occupancy.

Lessee Sign Off           Lessor's Contractor               Property Manager
X                         X                                 X
Date                      Date                              Date

                                      -18-
<PAGE>

                    EXHIBIT "C" INTERIOR SPACE WORK AGREEMENT
     HARRY KRAUS, INDIVIDUALLY AND OJI Surgical, Inc., an Oregon corporation
            1730 SW Skyline Blvd., Suite #102, Portland, Oregon 97221
                            Account #C-01-238-6251-05

<TABLE>
<CAPTION>
                                        ACCEPTED                           AGREED                             LESSOR       LESSEE
ITEM                                      AS-IS                         IMPROVEMENTS                          EXPENSE      EXPENSE
PAINTING:                                   -             Repaint Premises Stream Gray.
<S>                                      <C>             <C>                                                 <C>          <C>
(Building Standard Color)
FLOORCOVERING:                              -             Recarpet Premises using building standard              X
(Building Standard Direct Glue Down                       carpet. Color to be Rose Trellis. Cove
Carpet, Color/Cove Base Color)                            base #607.
VINYL FLOORCOVERING:                        X                               None
(Building Standard Vinyl)
LIGHTING:                                   -             Replace any burned out light tubes, replace

(Building Standard Fixtures)                             any broken light lenses, clean lenses as needed.
ELECTRICAL:                               -              Ensure all existing are operational, cover
(Building Standard I 10 Volt)                            plates on all.
CEILING:                                  _              Repaint ceiling using building standard
(Building Standard Acoustical Tile)                      color ceiling paint.
PARTITIONS:                               -              Remove partition per Exhibit "B-1" Space               X
(Building Standard Sheetrock)                            Plan.
DOORS/FRAMES:                             -              Remove door per Exhibit "B-1" Space
(Building Standard Quality)                              Plan. Oil suite entry door.
LOCKS/HARDWARE:                           -              All interior doors are to be supplied
(Building Standard Quality)                              with passage door knobs only (no locks).

LESSOR to provide four-(4) suite entry door keys.
LESSOR to provide three (3) mail box keys

RELIGHTS:                                 -              Remove relight per Exhibit "B-1" Space
(Building Standard Interior)                             Plan.
WINDOWCOVERING:                           -              Clean existing miniblinds, ensure all work.
(Building Standard Exterior)
TELEPHONE:                                ,X                               None
(Building Standard Mud Rings)
WOOD WINDOW SILLS:                        -              Restain window sills.                                 X
WATER SPIGOT:                             _              Remove per Exhibit "B-1" Space Plan.
EXTERIOR PHONE WIRES:                     -              Tuck up or remove dangling phone wires
                                                         outside window.
</TABLE>

EXTERIOR WINDOW SCREENS:- Wash and clean exterior windows.

                                      -19-
<PAGE>

If LESSEE is modifying the existing space layout, or expanding their Premises,
it is understood and agreed that all Lessor Agreed Tenant Improvement work may
be performed during normal business hours and will not be deemed as an
interruption of LESSEE'S business and that AMERICAN PROPERTY MANAGEMENT CORP.
assumes no liability for damage to any existing hidden electrical located in the
walls, ceiling and/or floors (i.e., electrical for phones, fax, computers,
office equipment, etc.) that is not indicated on this agreement and brought to
the attention of AMERICAN PROPERTY MANAGEMENT CORP. prior to the office remodel
or is not equipped with an appropriate power surge protection device.

If any provisions contained in this Exhibit "C" Interior Space Work Agreement
are inconsistent with any other provisions contained in this LEASE (ie: Exhibit
"B-I" or "B-2" Space Plan), the provisions contained in this Exhibit "C"
interior Space Work Agreement shall control.

(2U)
                                                   LESSOR INITIAL LESSEE INITIAL

                                      -20-
<PAGE>

                             EXHIBIT "E" FLOOR PLAN
     Harry Kraus, Individually and OJI Surgical, Inc., an Oregon corporation
            1730 SW Skyline Blvd., Suite #102, Portland, Oregon 97221
                            Account #C-01-238-6251-05

[IMAGE]

The above Floor Plan is meant to show the approximate location of the Premises
in relation to the rest of the floor only. It may not show an accurate as-built
drawing and is not meant for tenant improvement purposes.

                                      -21-
<PAGE>Exhibit 10.1

                          BUSINESS CONSULTING AGREEMENT

                  Made and entered this 3rd day of March, 1998

Between:

                  CSTI HI-TEC, LTD., a company incorporated
                  under the laws of the State of Israel,
                  3 Hamarpe street, Hotzivim,
                  Industrial Park Jerusalem, Israel

                                                    (Hereinafter: The "Company")

                                                                    ON ONE PART;
                                                                    ------------

and:

                  David Dahan,
                  55 Hashomer Street,
                  Rishon Le Zion, Israel

                                        (Hereinafter: The "Business Consultant")

                                                             ON THE SECOND PART;
                                                             -------------------

           WHEREAS, the Company is in a start up and development phase and
requires significant business consulting, advice, and expertise;

           WHEREAS, the Business Consultant has significant experience in the
areas of business development that will be of benefit to the Company in
completing its plans and goals;

           WHEREAS, the Company therefore desires to retain the Business
Consultant to assist the Company in providing those business consulting services
and advice relating to the development of the business and operations of the
Company, both domestically in Israel and internationally, including services
relating to the areas of Business Strategy, Marketing, Sales, Personnel, Finance
(including establishing banking relationships and lines of credit particularly
in Israel and In Europe), and other such services that may be requested by the
Company from time to time (Hereinafter: "Services");

          WHEREAS the Business Consultant has agreed to provide the Services to
the Company on the terms and conditions set forth in this Agreement.

          NOW THEREFORE in consideration of the premises and mutual agreements
and covenants hereinafter set forth, the parties hereto agree as follows:

                                    ARTICLE 1

1          BUSINESS CONSULTANT'S AGREEMENT

              SECTION 1.1     APPOINTMENT OF BUSINESS CONSULTANT. The Company
hereby appoints the Business Consultant to perform the Services for the benefit
of the Company and the Company hereby authorizes the Business Consultant to
exercise such powers as provided under this Agreement. The Business Consultant
accepts such appointment on the terms and conditions herein set forth and agrees
to provide the Services.

              SECTION 1.2 PERFORMANCE OF AGREEMENT. During the term of this
Agreement, the Business Consultant shall devote sufficient time, attention, and
ability to the business of the Company, and to any affiliate or successor
company, as is reasonably necessary for the proper performance of the Services
pursuant to this Agreement. Nothing contained herein shall be deemed to require
the Business Consultant to devote his exclusive time, attention and ability to
the business of the Company. During the term of this Agreement, the Business
Consultant shall, and shall cause each of his agents assigned to performance of
the Services on behalf of the Business Consultant, to:

<PAGE>

                      a. at all times perform the Services faithfully,
diligently, to the best of his abilities and in the best interests of the
Company;

                      b. devote such of his time, labor and attention to the
business of the Company as is necessary for the proper performance of the
Services hereunder, and;

                      c. refrain from acting in any manner contrary to the best
interests of the Company or contrary to the duties of the Business Consultant as
contemplated herein.

              SECTION 1.3 AUTHORITY OF BUSINESS CONSULTANT. The Business
Consultant shall have no right or authority, express or implied, to commit or
otherwise obligate the Company in any manner whatsoever except to the extent
specifically provided herein or specifically authorized in writing by the
Company.

              SECTION 1.4 INDEPENDENT BUSINESS CONSULTANT. In performing the
Services, the Business Consultant shall be an independent contractor and not an
employee or agent of the Company, except that the Business Consultant shall be
the agent of the Company solely in circumstances where the Business Consultant
must be the agent to carry out his obligations as set forth in this Agreement.
Nothing in this Agreement shall be deemed to require the Business Consultant to
provide the Services exclusively to the Company and the Business Consultant
hereby acknowledges that the Company is not required and shall not be required
to make any remittances and payments required of employers under Israel law on
the Business Consultant's behalf and the Business Consultant or any of his
agents shall not be entitled to the fringe benefits required by Israel law and
provided by the Company to its employees.

                                    ARTICLE 2

                              COMPANY'S AGREEMENTS

           SECTION 2.1 COMPENSATION OF BUSINESS CONSULTANT. As a result of the
present inability of the Company, as a start up venture, to pay a cash fee for
the Services to be provided by the Business Consultant, the Company shall, in
lieu of a cash fee, to compensate the Business Consultant by means of granting
equity in the Company or any successor thereto. The Company agrees to issue to
the Business Consultant 4% of its Ordinary Shares (or those of any successor
company), on a fully diluted basis, upon the earlier of the occurrence of any of
the following events ("Events") during the Term of this Agreement: (a) the
Company achieving Gross Revenues of a minimum of $15,000,000, as certified by
the company auditor in accordance with general accepted accounting principles;
(b) the Company achieving Net Earnings of a minimum of $1,500,000, as certified
by the company auditor in accordance with general accepted accounting
principles; (c) an acquisition of the Company by another corporation or entity
by consolidation, merger or other reorganization in a transaction valued in
excess of $20,000,000; (d) the sale, lease or other disposition of all or
substantially all of the assets of the Company; (e) the Company completing a
public offering of its Ordinary Shares, in Israel or elsewhere, at a valuation
in excess of $20,000,000. The Business Consultant, shall not be entitled to any
cash compensation from the Company or any successor thereto if the Events
referred to in this Section 2.1 do not occur during the Term of the Agreement.

                                    ARTICLE 3

                                      TERM

              SECTION 3.1 EFFECTIVE DATE. This Agreement shall become effective
on March 3, 1998 (the "Effective Date"), and shall continue for a period of five
(5) years from the Effective Date or until Terminated pursuant to the terms of
this Agreement ("Term").

              SECTION 3.2 TERMINATION. This Agreement may be terminated by
either party by giving the other thirty (30) days written notice of such
termination; provided however that this Agreement may be immediately terminated
by the Company if the Business Consultant is in breach of any material term of
this Agreement. In such case, if the Events referred to in Section 2.1 hereof
shall not have as yet occurred, the Business Consultant shall not be entitled to
receive the Compensation set forth therein.

              SECTION 3.3 DUTIES UPON TERMINATION. Upon termination of this
Agreement for any reason, the Business Consultant shall promptly deliver, in
accordance with the instructions of the Company, all documents pertaining to the
Company or this Agreement, including but not limited to, all books of account,
correspondence and contracts.

                                      -2-
<PAGE>

                                    ARTICLE 4

                                 CONFIDENTIALITY

              SECTION 4.1 CONFIDENTIALITY The Business Consultant shall not,
except as authorized or required by his duties, reveal or divulge to any person
or companies any of the trade secrets, secret or confidential operations,
processes or dealings or any information concerning the organization, business,
finances, transactions or other affairs of the Company, which may come to his
knowledge during the term of this Agreement and shall keep in complete secrecy
all confidential information entrusted to him and shall not use or attempt to
use any such information in any manner which may injure or cause loss, either
directly or indirectly, to the Company's business or may be likely so to do.
This restriction shall continue to apply after the termination of this Agreement
without limit in point of time but shall cease to apply to information or
knowledge, which may come into the public domain.

              The Business Consultant shall comply, and shall cause his agents
to comply, with such directions, as the Company shall make to ensure the
safeguarding or confidentiality of all such information. The Company may require
that any agent of the Business Consultant execute an agreement with the Company
regarding the confidentiality of all such information.

              SECTION 4.2 OTHER ACTIVITIES. The Business Consultant shall not be
precluded from acting in a function similar to that contemplated under this
Agreement for any other person, firm or company.

                                    ARTICLE 5

                                  MISCELLANEOUS

              SECTION 5.1 WAIVER; CONSENTS. No consent, approval or waiver,
express or implied, by either party hereto, to or of any breach of default by
the other party in the performance by the other party of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any
other breach or default in the performance by such other party of the same or
any other obligations of such other party or to declare the other party in
default, irrespective of how long such failure continues, shall not constitute a
general waiver by such party of its rights under this Agreement, and the
granting of any consent or approval in any one instance by or on behalf of the
Company shall not be construed to waiver or limit the need for such consent in
any other or subsequent instance.

              SECTION 5.2 Governing Law; Jurisdiction. This Agreement and all
matters arising thereunder shall be governed by the laws of the State of Israel
applicable therein without giving effect to the rules respecting conflict of
law, and the parties hereby irrevocably submit to the exclusive Jurisdiction of
the courts in Tel Aviv District, Israel in respect of any dispute or matter
arising out of, or in connection with, this Agreement.

              SECTION 5.3 BINDING EFFECT; ASSIGNMENT; This Agreement and all of
its provisions, rights and obligation shall be binding and shall inure to the
benefit of the parties hereto and their respective successors, heirs and legal
representatives. This Agreement may not be assigned by any party except with the
written consent of the other party hereto provided however that any benefit and
Compensation provided herein may be assigned without the consent of the other
party hereto.

              SECTION 5.4 ENTIRE AGREEMENT AND MODIFICATION. This Agreement
constitutes the entire agreement between the parties hereto and supersedes all
prior agreements and undertakings, whether oral or written, relative to the
subject matter hereof. To be effective any modification of this Agreement must
be in writing and signed by the party to be charged thereby.

              SECTION 5.5 SEVERABILITY. If any provision of this Agreement for
any reason shall be held to be illegal, invalid or unenforceable, such
illegality shall not affect any other provision of this Agreement, but this
Agreement shall be construed as if such illegal, invalid or unenforceable
provision had never been included therein.

              SECTION 5.6 HEADINGS. The headings of the Sections and Articles of
this Agreement are inserted for convenience of reference only and shall not in
any manner affect the construction or meaning of anything herein contained or
govern the rights or liabilities of the parties hereto.

              SECTION 5.7 NOTICES. All notices, requests and communications
required or permitted hereunder shall be in writing and shall be sufficiently
given and deemed to have been received upon personal delivery or, if mailed,
upon the first to occur of actual receipt or seventy two (72) hours after being
placed in the mail, registered mail, sent from a Post Office Branch within the
state of Israel, respectively addressed to the Company or the Business
Consultant as follows:

The Company: CSTI Hi-Tec, Ltd.................The Business    David Dahan
              3 Hamarpe street                Consultant:     55 Hashomer street
              Har Hatzofim,                                   Rishon Lezion,
              Industrial Park                                 Israel
              Jerusalem, Israel
Attention:    Jacob Lustgarten,
              Chairman of the Board,
              Chief Executive Officer

or such other address as may be specified in writing to the other party, but
notice of a change of address shall be effective only upon the actual receipt.

              SECTION 5.8 FURTHER ASSURANCES. The parties hereto agree from time
to time after the execution hereof to make, do, execute or cause or permit to be
made, done or executed all such further and other lawful acts, deeds, things,
devices and assurances in law whatsoever as may be required to carry out the
true intention and to give full force and effect to this Agreement.

              SECTION 5.9 COUNTERPARTS. This Agreement may be executed in
several counter-parts, each of which will be deemed to be an original and all of
which will together constitute one and the same instrument.

                                      -3-
<PAGE>

              SECTION 5.10 THIRD PARTIES. Except as specifically set forth or
referred to herein, nothing herein expressed or implied is intended or shall be
construed to confer upon or give to any person other than the parties hereto and
their permitted successors or assigns, any rights or remedies under or by reason
of this Agreement.

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

CSTI HI-TEC, LTD.                                    David Dahan

By: /S/ JACOB LUSTGARTEN                            /S/ DAVID DAHAN
----------------------- -                           ---------------
                                                     The Business Consultant
                                                     Chairman of the Board,
                                                     hief Executive Officer

                                      -4-
<PAGE>

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