Document:

EXHIBIT 10.8

                         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

                            THIRD AMENDMENT TO LEASE
                                 LEASE EXTENSION

                                 AUGUST 1, 2000

AMERICAN PROPERTY MANAGEMENT Account #C-02-296-8923-02

It is mutually  agreed that the original Lease dated October 29, 1996, The First
Amendment  dated December 9, 1997 and The Lease  Extension  dated  September 11,
1998,  collectively the "LEASE",  between AMERICAN PROPERTY  MANAGEMENT CORP. as
agent  for  and  on  behalf  of  WESTON  HOLDING  CO.  L.L.C.,  ("LESSOR"),  and
GARDENBURGER, INC. an Oregon corporation ("LESSEE"), for Suite #400 ("Premises")
in the Morrison Plaza Office Building  ("Building") at 1411 SW Morrison  Street,
in  Portland,  Oregon,  consisting  of  approximately  18,850  square feet (this
measurement includes a load factor for the building of 0%) is hereby modified as
follows:

ARTICLE  1 Page One of the  LEASE  shall be  amended  with the  addition  of the
following:

The LEASE  term shall be  extended  for a period of two (2)  year(s)  commencing
January 1, 2001 and terminating December 31, 2002 ("Extension Term").

ARTICLE  2 Page One of the  LEASE  shall be  amended  with the  addition  of the
following:

Commencing  January 1, 2001 the initial Base Rental for the Extension Term shall
be  determined by increasing  the  preceding  Base Rent of $21,842.44  per month
based upon the  increase  between the  consumer  price  index for the U.S.  city
average (all urban consumer)  October 1999 which was 168.2 and the same consumer
price index as of October 2000.

ARTICLE 3 Section 4.1 of the original  Lease,  "Lease  Consideration",  shall be
amended with the addition of the following:

The LESSEE shall submit with this signed Third Amendment to Lease, an additional
Lease  Consideration  Deposit of  ($1,814.73)  which shall be held by the LESSOR
together  with the Lease  Consideration  Deposit  currently  deposited  with the
LESSOR  under the  original  Lease  ($22,266.56).  The new  Lease  Consideration
Deposit equal to the estimated last month base rent  ($24,081.29)  shall be held
by the Lessor in accordance with the provisions of the original  Lease,  Section
4.1.

                                  Page 1 OF 7
<PAGE>

ARTICLE 4 Section 38.1 and 38.2 of the original Lease,  "Rental  Adjustment" and
"Rental Adjustment Dates" shall be replaced with the following:

The Base  Rental  will be  adjusted  January 1, 2002  based upon the  percentage
increase in the yearly  Consumer  Price Index for U.S.  City  average (all urban
consumer),  between October 2000 and the same Consumer Price Index as of October
2001. 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%.

ARTICLE 5  Shower Facility

The privileges described in Article 7 of the Lease Extension dated September 11,
1998 shall be extended through December 31, 2002

ARTICLE 6 Section  42.1 of the  LEASE,  "Interior  Design &  Modification",  and
Section 43.1 of the LEASE, "Lessor Agreed Tenant Improvements", shall be amended
with the following:

See Exhibit "B-2" Space Plan and Exhibit "C-2" Interior Space Work Agreement.

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

ARTICLE 7 Section 44.1 of the original Lease, "Lessee Agreed Improvements" shall
be amended with the following:

1)   Subject to Section 10.1 of the original Lease, "Alterations",  and provided
     the  LESSOR  approves  plans  in  writing  and the work is  completed  by a
     licensed and bonded  contractor  under the proper  building permit from the
     City of Portland,  LESSEE may install one (1) unisex  shower with  changing
     area  adjacent to the women's  restroom at LESSEE's  sole cost and expense.
     Upon  written  approval of plans by LESSOR,  the plans shall be attached as
     Exhibit "D" and become part of the LEASE hereto.

2)   In  addition,   and  subject  to  Section  10.1  of  the  original   LEASE,
     "Alterations",  LESSEE  shall  have the right to  install an all glass door
     where indicated "(1)", on the attached Exhibit "B-2" Space Plan, subject
     to LESSOR  approving the final  schematic  drawing which includes  material
     specifications. LESSEE agrees to use a licensed and bonded contractor under
     proper  building  permit  from  the  City of  Portland.  After  the work is
     completed,  approved by LESSOR and LESSEE provides the LESSOR with invoice,
     the LESSOR shall pay for said work based on the actual amount paid,  not to
     exceed  $7,500.00,  in the form of a rental credit to be applied to January
     2001 rent only.

                                  Page 2 of 7

<PAGE>

ARTICLE 8  Termination

Only in the event LESSEE is acquired by another  organization  and LESSEE is not
in default, LESSEE will have a one-time right to terminate the LEASE on December
31, 2001 ("Early  Termination  Date") by  providing  LESSOR with at least ninety
(90) days written notice prior to Early  Termination  Date (on or before October
2,  2001),  accompanied  by a fee equal to three (3) months  rent  ("Termination
Fee") at the then current  monthly Base Rental amount.  The Termination Fee will
not be applied to Base  Rental and the  monthly  Base Rent will  continue to the
Early Termination Date of December 31, 2001.

ARTICLE 9 Section  49.1,  "Option  to Renew",  of the  original  Lease  shall be
deleted in its entirety and replaced with the following:

LESSEE  shall be entitled to one (1) option to renew the LEASE for a term of two
(2)  years  commencing  January  1,  2003  under  the  current  LEASE  terms and
conditions with the following exceptions;  1.) the Base Rent will be at the then
prevailing  market rate; and 2.) the LESSEE will not have the right to terminate
the LEASE during the renewal term; and 3.) there will not be a rent  concession;
and 4.) no tenant improvements will be performed unless mutually agreed upon.

(a)  LESSEE  shall have no right to  exercise  an  Option,  notwithstanding  any
provision  in the  grant of  Option  to the  contrary;  (i)  during  the  period
commencing  with the  giving of any  notice of Default  under  Section  17.1 and
continuing until the noticed Default is cured, or (ii) during the period of time
any  monetary  obligation  due LESSOR from LESSEE is unpaid  (without  regard to
whether notice  thereof is given to LESSEE),  or (iii) during the time LESSEE is
in Breach of this  LEASE,  or (iv) in the event the  LESSOR  has given to LESSEE
three (3) or more  notices of  separate  Defaults  during the twelve  (12) month
period  immediately  preceding  the  exercise of the Option,  whether or not the
defaults are cured.

(b) The Option granted to LESSEE in the LEASE is personal to the original LESSEE
named on Page 1 hereof and cannot be  voluntarily or  involuntarily  assigned or
exercised  by any person or entity  other than said  original  LESSEE  while the
original LESSEE is in full and actual possession of the Premises and without the
intention of thereafter  assigning or  subletting.  The Option herein granted to
LESSEE  is not  assignable,  either as a part of an  assignment  of the LEASE or
separately or apart therefrom,  and no Option may be separated from the LEASE in
any manner, by reservation or otherwise.  However,  if this LEASE is assigned to
an acquiring  company the Option shall remain in full force and effect,  pending
the provisions of paragraph (a) above.

ARTICLE 10

In addition to the rent credit  described  in Article 7, the LESSOR will provide
the LESSEE a rent concession valued at $5,000.00, which shall also be applied as
a rental credit to January 2001 rent only.

                                  Page 3 of 7
<PAGE>

ARTICLE 11

The signing of this Third Amendment to Lease by the parties hereto constitutes a
Lease between them  incorporating  all of the terms and conditions  contained in
the LEASE heretofore made between LESSEE and LESSOR, or LESSOR'S  predecessor in
interest,  except as modified by the terms of this Third  Amendment to Lease. If
any provisions  contained in this Third Amendment to Lease are inconsistent with
any other  provisions of the LEASE,  the  provisions in this Third  Amendment to
Lease shall control, unless otherwise provided in this Third Amendment to Lease.
This Third  Amendment  to Lease is to be attached  to the LEASE,  which is to be
deemed a part of it. This Third  Amendment  to Lease shall not be binding at the
sole option of the LESSOR if, as of the commencement  date of the extension term
herein,  the LESSEE is in default under any of the provisions of the LEASE above
described.

ARTICLE 12

This  offer to extend  LESSEE'S  LEASE  shall  expire at the sole  option of the
LESSOR if this  Third  Amendment  to Lease is not signed  and  delivered  to the
LESSOR with no changes and accompanied by appropriate  pre-paid monies by August
7, 2000 at 12 p.m.

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

LESSOR:                                      LESSEE:
AMERICAN PROPERTY MANAGEMENT CORP.           GARDENBURGER, INC.
as agent for and on behalf of                an Oregon corporation
WESTON HOLDING CO. L.L.C.,

X/s/ Douglas D. Lindholm                     By: /s/ Peter W. Shipp
 -----------------------------------            -------------------
 Douglas D. Lindholm                         Name:  Peter W. Shipp
 Vice President of Commercial Property       Title:  Sr. VP/CAO

DATE:  August 9, 2000                        DATE:  August 2, 2000

                                  Page 4 of 7

<PAGE>

                            EXHIBIT "B-2" SPACE PLAN
                    GARDENBURGER, INC., an Oregon corporation
                          1411 SW Morrison, Suite #400
                             Portland, Oregon 97205
                           Account # C-02-296-8923-02

                             [Map of Office Space]

Any changes to this Exhibit  "B-2" 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 lease commencement, and may delay LESSEE's occupancy.

                                  Page 5 of 7
<PAGE>

                   EXHIBIT "C-2" INTERIOR SPACE WORK AGREEMENT

                LESSEE: GARDENBURGER, INC., an Oregon corporation
           ACCOUNT #:C-02-296-8923-02 BUILDING/SUITE #: Morrison/#400
<TABLE>
<CAPTION>
                                ACCEPTED                       AGREED                        LESSOR               LESSEE
ITEM                              AS-IS                     IMPROVEMENTS                     EXPENSE              EXPENSE
----                              -----                     ------------                     -------              -------
<S>                               <C>                       <C>                              <C>                  <C>
PAINTING:                          X                            None                          _____                _____
                                 ------                       ---------
(Building Standard Color)

FLOORCOVERING:                      X                           None                          _____                _____
                                   ---                        ---------
(Building Standard Carpet
Color/Cove Base Color)

VINYL FLOORCOVERING:                X                           None                          _____                _____
                                   ---                        --------
(Building Standard Vinyl)

LIGHTING:                           X                          None                           _____                _____
                                   ---                        ---------
(Building Standard Fixtures)

ELECTRICAL:                         X                           None                          _____                _____
                                   ---                        ---------
(Building Standard 110 Volt)

CEILING:                            X                          None                           _____                _____
                                   ---                        ---------
(Building Standard Acoustical Tile)

PARTITIONS:                         X                          None                           _____                _____
                                   ---                         ------
(Building Standard Sheetrock)

DOORS/FRAMES                       X                            None                          _____                _____
                                 -----                          ----
(Building Standard Quality)

LOCKS/HARDWARE                      X                           None                          _____                _____
                                   ---                          ----
(Building Standard Quality)

RELIGHTS:                          X                            None                          _____                _____
                                 ------                         ----
(Building Standard Interior)

WINDOWCOVERING:                    X                           None                           _____                _____
                                 ------                      ----------
(Building Standard Exterior)

TELEPHONE:                         X                            None                          _____                _____
                                 ------                       ---------
(Building Standard Mud Rings)

PLUMBING:                           X                           None                          _____                _____
                                  ------                      ---------
</TABLE>

If LESSEE is modifying  their existing space layout,  or expanding  their leased
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.

                                  Page 6 of 7
<PAGE>

                                   EXHIBIT "D"
                           LESSEE AGREED IMPROVEMENTS
                    GARDENBURGER, INC., an Oregon corporation
                          1411 SW Morrison, Suite #400
                             Portland, Oregon 97205
                           Account # C-02-296-8923-02

                   [TO BE ATTACHED IF LESSEE INSTALLS A SHOWER]

                                 (SEE ARTICLE 7)

                                  Page 7 of 7EXHIBIT 10.32

                        SEPARATION AGREEMENT AND RELEASE

          The parties to this Agreement are Lyle G. Hubbard  (referred to herein
as "Mr.  Hubbard"),  an  individual  residing  at  12016  S.W.  Breyman  Avenue,
Portland,  Oregon 97219, and Gardenburger,  Inc., an Oregon corporation with its
principal place of business at 1411 S.W. Morrison,  Suite 400, Portland,  Oregon
97205 (referred to herein as the "Company").

                                    RECITALS
                                    --------

          A. Mr.  Hubbard is the Chief  Executive  Officer of the  Company.  Mr.
Hubbard and the Company  entered into an  Employment  Agreement  dated April 14,
1996, a first Agreement to Extend and Amend Employment  Agreement dated November
16, 1998,  a second  Agreement to Extend and Amend  Employment  Agreement  dated
March 5, 1999, and a Third  Amendment to Employment  Agreement dated December 9,
1999. The Employment Agreement,  as amended, shall hereinafter be referred to as
the  "Employment  Agreement."  Mr.  Hubbard and the Company  also entered into a
Retention   Incentive   Agreement   dated  November  10,  1999  (the  "Retention
Agreement"). At the commencement of his employment with the Company, Mr. Hubbard
also  executed an Employee  Proprietary  Rights,  Confidentiality  and Invention
Agreement (the "Confidentiality Agreement").

          B. The  parties  wish to amicably  and  finally  end their  employment
relationship, as fully set forth herein.

                                   AGREEMENTS
                                   ----------

          1. RESIGNATION AND  RELINQUISHMENT  OF EMPLOYMENT AND DIRECTOR RIGHTS.
Mr. Hubbard hereby  resigns his  employment  with the Company  effective as of 5
p.m.  on August 4,  2000,  and  agrees  that he has no right to any  employment,
reemployment,  or  employment  benefits  of any  kind,  except  those  expressly
described  herein.  Mr. Hubbard  hereby resigns as a director of  Gardenburger's
Board of Directors,  which resignation shall be effective  immediately,  and the
parties  agree  that this  Agreement  shall  constitute  the  written  notice of
resignation that is required under the Company's bylaws.

          2. BASE COMPENSATION. Mr. Hubbard hereby agrees to accept a payment of
the sum of $12,115.38,  less normal withholdings and deductions,  paid to him in
full satisfaction of all base compensation owing to him from the Company.

          3. PRORATED  RETENTION  INCENTIVE  AWARD. Mr. Hubbard hereby agrees to
accept  a  payment  of  the  sum  of  $321,343,  less  normal  withholdings  and
deductions,  paid to him in full  satisfaction  of any amount owing to him under
the Retention Agreement.

          4. PRORATED  INCENTIVE  BONUS.  Mr.  Hubbard hereby agrees to accept a
payment of the sum of $146,268, less normal withholdings and deductions, paid to
him in full  satisfaction  of any incentive  bonus payment owing to him from the
Company.

          5. ACCRUALS.  Mr. Hubbard hereby agrees to accept a payment of the sum
of $44,654.88,  less normal  withholdings  and  deductions,  paid to him in full

SEPARATION AGREEMENT AND RELEASE - Page 1 of 6

<PAGE>

satisfaction of any accrued  vacation pay or other form of accrued  compensation
benefits  owing to him from the Company,  except for any amounts to which he may
be entitled under the Company's 401(k) plan.

          6. SEVERANCE PAYMENT.  Mr. Hubbard hereby agrees to accept a severance
payment of the sum of $717,672, less normal withholdings and deductions, paid to
him in full satisfaction of any severance payment claims he may have against the
Company.  Mr.  Hubbard  acknowledges  that  this is an amount to which he is not
otherwise  entitled without  execution of this Agreement.  The Company is making
this payment in consideration of the covenants contained herein.

          7. OUTPLACEMENT  SERVICES.  Upon written request from Mr. Hubbard, the
Company  will  retain  a  reputable   outplacement  agency  that  is  reasonably
acceptable  to Mr.  Hubbard  to assist  Mr.  Hubbard  in  finding  another  job;
provided,  however,  that the maximum amount that the Company shall be obligated
to expend in outplacement services is $25,000.

          8.  CONFIDENTIALITY.  Mr.  Hubbard  acknowledges  that he executed the
Confidentiality  Agreement  upon his  initial  employment  with the  Company and
reaffirms his agreement to be bound thereby.

          9. NONCOMPETITION AND  NONSOLICITATION.  Mr. Hubbard  acknowledges and
agrees that he agreed to certain  noncompetition and  nonsolicitation  covenants
upon his initial  employment  with the Company,  as set forth in the  Employment
Agreement, and reaffirms his agreement to be bound thereby.

          10. RELEASE OF CLAIMS.

          (a) Mr.  Hubbard hereby  releases and forever  discharges the Company,
its  predecessors,  successors and assigns,  and its past,  present,  and future
insurers, representatives,  officers, trustees, shareholders, directors, agents,
insurers,  attorneys, and employees,  and their respective successors,  assigns,
executors, and administrators  (collectively,  the "Gardenburger Releasees"), of
and from any and all claims,  charges,  complaints,  actions,  causes of action,
liability,  damages,  costs,  attorney fees,  expenses of whatever  nature,  and
demands of any kind (including without limitation those based in tort, contract,
or statute,  including without  limitation,  applicable state civil rights laws,
Title VII of the Civil Rights Act of 1964,  the  Post-Civil  War Rights Act, the
Age  Discrimination  in Employment Act ("the ADEA"),  29 ss. USC 621 et seq, the
Americans With Disabilities Act, the  Rehabilitation  Act of 1973, the Equal Pay
Act of 1963, and any  regulations  under such laws) up to and including the date
set forth below, whether known or unknown,  foreseen or unforeseen,  asserted or
unasserted.

          (b) Without  limitation on the  foregoing,  Mr. Hubbard hereby accepts
the payments set forth herein in full settlement and satisfaction of all claims,
charges, complaints,  actions, causes of action, and demands against the Company
or any of the Releasees of every nature and kind  whatsoever,  known or unknown,
suspected or  unsuspected,  past,  present or future on account of or in any way
related to or arising from the employment  relationship existing between them or
the  termination  of that  relationship.  Mr. Hubbard agrees that he is lawfully
entitled to no  payments,  wages,  compensation,  or  benefits  from the Company
except as set forth in this Agreement, and except for any amounts to which he is

SEPARATION AGREEMENT AND RELEASE - Page 2 of 6

<PAGE>

entitled under the terms of the Company's 401(k) plan and under the stock option
agreements entered into between the Company and Mr. Hubbard.

          (c) Mr. Hubbard  represents  that he has no claims against or relating
to the Company  pending or filed with any local,  state, or federal agency as of
the date this  Agreement  is signed;  and that if any such claims are pending or
filed, they will be immediately withdrawn or dismissed.  Mr. Hubbard agrees that
he will not assert any court  action,  lawsuit,  or any other claim  against the
Company  or  any  other  of  the  Gardenburger  Releasees  arising  out of or in
connection  with  any  of  the  foregoing  released  claims,  including  without
limitation any action,  lawsuit,  or claim arising out of or in connection  with
the employment  relationship existing between the Company and Mr. Hubbard or the
termination of that relationship  other than one based upon an alleged violation
of this Agreement.

          (d) Nothing  contained  in this  Agreement  will  adversely  affect or
lessen in any manner Mr. Hubbard's rights to  indemnification  as an employee or
director of the Company under the Company's  bylaws,  articles of incorporation,
the  indemnification  agreement dated February 19, 1999, between Mr. Hubbard and
the Company, or applicable law.

          (e) The Company hereby releases and forever discharges Mr. Hubbard and
his  heirs,  successors,   beneficiaries,   agents,  and  attorneys,  and  their
respective successors, assigns, executors, and administrators (collectively, the
"Hubbard  Releasees"),  of and from any and all  charges,  complaints,  actions,
causes of action, liability, damages, costs, attorney fees, expenses of whatever
nature,  and demands of any kind (including  without  limitation  those based in
tort, contract,  or statute) arising from or based on claims of which any member
of the Company's Board of Directors (excluding Mr. Hubbard) has actual knowledge
as of the date of this Agreement.

          11. NO ADMISSION OF LIABILITY. Nothing in this Agreement shall operate
or be interpreted as an admission of liability as to any of the claims, charges,
actions and lawsuits released hereby.  The Company and Mr. Hubbard,  and each of
their  respective  Releasees  and  successors,  individually  and  collectively,
expressly deny any such  liability.  Neither this Agreement nor any of its terms
may be offered or admitted into  evidence  other than in an action by one of the
parties to enforce its terms.

          12. MR.  HUBBARD  GIVEN 21 DAYS TO  CONSIDER  AGREEMENT.  The  Company
hereby advises Mr. Hubbard in writing to consult with an attorney before signing
this Agreement and that he has a period of at least 21 days to consider  whether
to execute this  Agreement.  For  purposes of this 21-day  period,  Mr.  Hubbard
acknowledges  that a form of this  Agreement  was  delivered  to him on July 31,
2000.

          13.  REVOCATION.  After signing the Agreement and  delivering it to E.
Kay Stepp ("Ms.  Stepp"),  Chair of the Board of Directors  of the Company,  Mr.
Hubbard may revoke this  Agreement by written  notice,  delivered to Ms.  Stepp,
within seven days following his date of signature as set forth on page 6 of this
Agreement.  This Agreement becomes effective and enforceable after the seven-day
period has expired, without revocation,  and payment of the sums provided for in
paragraphs 2 through 6 above shall thereupon become  immediately due and payable
to Mr. Hubbard.

SEPARATION AGREEMENT AND RELEASE - Page 3 of 6

<PAGE>

          14.  NONDISPARAGEMENT.  Mr.  Hubbard agrees not to make any derogatory
statements,  written  or oral,  about the  Company,  its  products,  operations,
employees,  or  directors,  or any other aspect of the Company's  business.  The
Company agrees not to make any derogatory statements, written or oral, about Mr.
Hubbard.  When announcing the resignation of Mr. Hubbard, the Company will issue
a statement in substantially the same form as that attached hereto as Exhibit A.

          15. CONFIDENTIALITY OF THIS AGREEMENT. Except as specifically provided
below,  the parties to this  Agreement  will keep its terms  confidential.  This
promise of confidentiality  extends to all terms of this Agreement.  The parties
will not disclose the terms of this  Agreement to any firm,  person,  or entity,
except that:

          (a) To the  extent  necessary  to  receive  professional  advice,  the
     parties  may  disclose  the  terms of this  Agreement  to their  respective
     attorneys,  accountants,  tax  preparers,  tax  consultants,  and financial
     planners.  Mr.  Hubbard may  disclose  the terms of this  Agreement  to his
     spouse.

          (b) The parties may disclose the terms of this  Agreement if compelled
     to do so under a court or  administrative  order or to  enforce  any of its
     terms  in a  court  or  administrative  proceeding  or  arbitration,  or as
     required  by law or the terms of any  contract  to which the  Company  is a
     party, or to regulatory authorities,  including self-regulating bodies. The
     Company may disclose this  Agreement and the terms thereof to the extent it
     believes that it is required by law or regulation to do so, including,  but
     not limited to, in its audited or interim  financial  statements and in its
     proxy  statements  and  reports  filed  with the  Securities  and  Exchange
     Commission and other regulatory bodies.

          (c) The Company may disclose the terms of this  Agreement to its Board
     and  management  or as necessary to implement any term or condition of this
     Agreement.

          16.  STOCK OPTION  AGREEMENTS.  For  purposes of Mr.  Hubbard's  stock
option agreements with the Company, his resignation  hereunder will be deemed to
be a termination without cause.

          17.  HEALTH  BENEFITS.   If  Mr.  Hubbard  elects  COBRA  continuation
coverage, the Company will pay the premium for the coverage that he had with the
Company as of July 31, 2000,  for a period ending upon the first to occur of (a)
the date which is 18 months  after the date of this  Agreement,  (b) the date on
which  Mr.  Hubbard  discontinues  such  coverage,  or (c) the date on which Mr.
Hubbard becomes  eligible for group health  insurance  benefits from a different
employer.

          18. ARBITRATION.  Any dispute between the parties, including,  without
limitation,  any dispute  concerning or arising under this  Agreement,  shall be
settled by binding arbitration using the Arbitration Service of Portland,  Inc.,
and the rules and  procedures  thereof.  The  arbitration  shall be conducted in
Portland,  Oregon, before a single arbitrator.  A party substantially prevailing

SEPARATION AGREEMENT AND RELEASE - Page 4 of 6

<PAGE>

in the  arbitration  shall also be entitled to recover such amount for its costs
and  attorney  fees  incurred in  connection  with the  arbitration  as shall be
determined by the arbitrator. Judgment upon the arbitration award may be entered
in any court having jurisdiction.  Nothing herein, however, shall prevent either
party from resort to a court of competent  jurisdiction in those instances where
injunctive  relief may be  appropriate.  In the event of such  litigation in the
courts,  the  prevailing  party  shall be  entitled  to recover  its  reasonable
attorney  fees and other  costs  incurred  in  connection  with  that  action or
proceeding,  including such costs and attorney fees incurred in connection  with
any appeal or petition for review.

          19. ENTIRE AGREEMENT. This Agreement, those portions of the Employment
Agreement  relating  to  Mr.  Hubbard's   nondisclosure,   noncompetition,   and
nonsolicitation obligations, the Confidentiality Agreement, and the stock option
agreements between Mr. Hubbard and the Company,  constitute the entire agreement
of the  parties  relating to the subject  matter of this  Agreement.  All of the
agreements, covenants, representations, and warranties, express or implied, oral
or written,  concerning  the subject  matter of this  Agreement are contained in
this  Agreement.  All prior  and  contemporaneous  conversations,  negotiations,
agreements,  representations,  covenants,  and warranties concerning the subject
matter of this Agreement are merged into or replaced by this Agreement.

          20. CONSTRUCTION OF AGREEMENT. Each of the parties hereto has reviewed
and negotiated or had the  opportunity to negotiate the terms,  conditions,  and
language of this Agreement.  The rule of construction that ambiguities are to be
resolved  against the drafting party shall not be applied in  interpreting  this
Agreement.  Section  and  paragraph  titles  in  this  Agreement  are  used  for
convenience  only and are not  intended  to and  shall  not in any way  enlarge,
define,  limit, or extend the rights or obligations of the parties or affect the
interpretation of this Agreement.

          21. COUNTERPARTS.  For the purpose of facilitating this Agreement, and
for other purposes,  this Agreement may be executed simultaneously in any number
of  counterparts.  Each counterpart  shall be deemed to be an original,  and all
such counterparts shall constitute one and the same instrument.

          22. GOVERNING LAW. This Agreement shall be construed, interpreted, and
enforced  in  accordance  with the laws of the  State of Oregon  and  applicable
federal law. Any legal action or other judicial proceeding brought in connection
with this Agreement or any provision thereof shall be instituted only in federal
or state courts located in the state of Oregon.

          23.  SUCCESSORS AND ASSIGNS.  This Agreement shall be binding upon and
inure to the  benefit  of both  parties  and  their  respective  successors  and
assigns,  including any corporation  with which or into which the Company may be
merged or which may succeed to its assets or business,  provided,  however, that
the obligations of Mr. Hubbard are personal and shall not be assigned by him.

          24. NO WAIVER.  No delay or omission by the Company or Mr.  Hubbard in
exercising any right under this  Agreement  shall operate as a waiver of that or
any other right.  A waiver or consent given by the Company or Mr. Hubbard on any
one occasion shall be effective only in that instance and shall not be construed
as a bar or waiver of any right on any other occasion.

SEPARATION AGREEMENT AND RELEASE - Page 5 of 6

<PAGE>

          25.  KNOWING AND VOLUNTARY  AGREEMENT.  Mr. Hubbard  acknowledges  and
agrees  that the only  consideration  for this  Agreement  is the  consideration
expressly  described  herein,  that he has carefully read the entire  Agreement,
that he has had the opportunity to review this Agreement and to have it reviewed
and explained to him by an attorney of his choosing,  that he fully  understands
the final and binding effect, and that he is signing this Agreement voluntarily,
and with the full intent of releasing the Company from all claims.

          DATED this 4th day of August, 2000.

                                          GARDENBURGER, INC.

/s/ Lyle G. Hubbard                       By:    /s/ E. Kay Stepp
--------------------------------              ----------------------------------
Lyle G. Hubbard                                  E. Kay Stepp
                                                 Chair of the Board of Directors

SEPARATION AGREEMENT AND RELEASE - Page 6 of 6
<PAGE>

                                    EXHIBIT A

Contact:     Steve Bryant, (206) 270-4664
             sbryant@publicis-usa.com

                  GARDENBURGER ANNOUNCES MANAGEMENT TRANSITION

LYLE G. HUBBARD RESIGNS; COMPANY LAUNCHES NATIONAL SEARCH FOR NEW PRESIDENT/CEO

PORTLAND,  ORE. (August 6, 2000) -- Gardenburger,  Inc. (Nasdaq:GBUR)  announced
that it has  accepted the  resignation  of  President  and CEO Lyle G.  Hubbard,
effective Friday,  August 4. Hubbard leaves his executive  position and his seat
on the board of  directors  after close to five years at the helm,  during which
time  Gardenburger  sales doubled and the brand achieved market share leadership
in the grocery, food service, natural, and club channels.

         The company's board of directors has engaged the executive  search firm
SpencerStuart to conduct a national search for a new president and CEO. The role
of interim  president  and CEO will be assumed  by James W.  Linford,  currently
senior vice president of supply chain and operations for Gardenburger, Inc.

         "Lyle Hubbard  assumed his leadership  role with a clear agenda to take
the company from the natural foods niche to nationwide retail  leadership," said
Kay Stepp,  who has long chaired the company's  board.  "He achieved that aim on
the strength of a series of successful  new products and strong  marketing  that
succeeded in 'branding the category.'"

         Stepp said the company has since  refocused  its  strategy on achieving
sustained growth and profitability in all channels of distribution without heavy
marketing spending.

         "In my  nearly  five  years  as CEO of  Gardenburger,  I have  had  the
pleasure of working with excellent  management talent," Hubbard commented.  "Our
plans were bold, and I want to thank our Board of Directors and Paul Wenner, the
inventor and visionary who created The Original  Gardenburger(R)  veggie burger,
for their support and encouragement.  While I greatly care about the Company and
all its stakeholders, I am looking forward to spending more time with my family.
I  am  proud  of  our  return  to  positive   operating  income.  I  believe  in
Gardenburger's ability to reach the next level of growth and profitability."

         According to Stepp, Linford was the obvious choice for an interim role.

<PAGE>

Management Transition
Page 2

         For  more  than 15  years,  Linford  has held  senior-level  management
positions in the food manufacturing industry,  including posts with HJ Heinz and
Oceanspray  Cranberries,  Inc. He was responsible for developing  Gardenburger's
world-class  manufacturing  plant in Utah,  as well as research and  development
efforts  that have  spawned  products  currently  accounting  for 40  percent of
Gardenburger sales.

         Most recently,  Linford spearheaded the development of a patent-pending
flame-grilling  process that allowed  Gardenburger's  most  significant  product
enhancement to date. The resulting Gardenburger Flame Grilled(TM) veggie patties
are currently outselling all other Gardenburger  products in the 12 introductory
regions.

         "Jim's  achievements at Gardenburger  and his experience at other major
food makers make him  exceptionally  well  prepared for this interim  leadership
role," said Stepp.

         Linford emphasized the company's continued growth potential.

         "Considerable  opportunities  remain for  providing  a variety of great
tasting,  healthy  meatless foods, and making them available  everywhere,"  said
Linford.

         Late last month  Gardenburger  reported a return to positive  operating
income,  recording $1.1 million in the quarter ended June 30, 2000,  compared to
an operating loss of $16.1 million for the quarter ended June 30, 1999.

         Founded in 1985 by GardenChef Paul Wenner(TM), Gardenburger, Inc. is an
innovator  in meatless,  low-fat  food  products.  The company  distributes  its
flagship  Gardenburger(R)  veggie patty to more than 35,000 food service outlets
throughout  the United  States and Canada.  Retail  customers  include more than
30,000  grocery,  natural food and club stores.  Based in Portland,  Ore.,  with
manufacturing  facilities  in  Clearfield,  UT, the  company  currently  employs
approximately 190 people.

                                      # # #

Statements in this press release about future events or performance  are forward
looking  statements that are necessarily  subject to risk and  uncertainty.  The
company's actual results could be quite different.  Important factors that could
affect  results  include  the  company's  reliance  on product  acceptance,  the
company's ability to execute its retail distribution plan,  effectiveness of the
company's  sales and marketing  efforts,  and intense  competition in the veggie
patty and other meat  alternatives  industry,  which the company  believes  will
increase. Other important factors that could affect results are set forth in the
company's  Annual Report on Form 10-K for the year ended  September 30, 1999 and
the  company's  1999 Annual  Report to  shareholders.  Although  forward-looking
statements help provide complete information about the company, investors should
keep in mind that  forward-looking  statements are inherently less reliable than
historical information.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]