Document:

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                                                                    EXHIBIT 10.5

                        MERCHANT ASSET PURCHASE AGREEMENT

     THIS MERCHANT ASSET PURCHASE AGREEMENT (this "Agreement") is made and
entered into as of this 21st day of December, 2004 by and among UMPQUA BANK, an
Oregon state-chartered bank (the "Bank"), UMPQUA HOLDINGS CORPORATION, an Oregon
corporation and the sole shareholder of the Bank ("Parent"), and NOVA
INFORMATION SYSTEMS, INC., a Georgia corporation ("NOVA").

                             BACKGROUND AND PURPOSE:

     A. The Bank is a party to certain Merchant Agreements with various
Merchants, who consist principally of merchants and other providers of goods and
services, according to which agreements the Bank has agreed to provide certain
services in connection with the Bank's Merchant Business.

     B. The Bank wishes to sell and transfer to NOVA all of its rights under the
Merchant Agreements, and the Bank wishes to sell and transfer to NOVA certain
other assets utilized in connection with the Merchant Business, and NOVA is
willing to accept such rights and assets and to assume certain obligations in
connection with the Merchant Business. The parties hereto are willing and able,
additionally, to undertake and perform certain other obligations pursuant to and
in connection with this Agreement, subject to the terms and conditions hereof.

                                  THE AGREEMENT

     NOW, THEREFORE, in consideration of the premises, the mutual agreements
contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which hereby are acknowledged, the Bank, Parent and
NOVA hereby agree, on the terms and conditions herein set forth, as follows:

     The capitalized terms used herein shall have the meaning ascribed to such
terms in Section 12.1 hereof unless otherwise defined herein.

                                   ARTICLE I

                     ASSETS SOLD; ASSUMPTION OF LIABILITIES

     1.1 SALE AND PURCHASE. On the terms and subject to the conditions set forth
in this Agreement, and effective as of the Closing Date (the "Effective Date"),
the Bank hereby sells, transfers and assigns to NOVA and NOVA hereby purchases
and accepts from the Bank, all right and title to, and interest of the Bank in,
all of the Bank's assets and interests, both tangible and intangible, accrued or
contingent, used, useful, or arising in the conduct of the Merchant Business,
directly or indirectly, in existence on the date hereof and on and after the
Effective Date (other than the Excluded Assets), including the following
properties and assets (collectively, the "Assets Sold"):

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          (a) all rights and interests of the Bank in and to the Merchants
     (under the Merchant Agreements and otherwise) arising on or after the
     Effective Date, and all pertinent books, records and documents relating to
     such Merchant Agreements (as further specified in Section 1.5 hereof);

          (b) the Equipment (and any rentals and leases related thereto) and
     related revenues accruing on or after the Effective Date;

          (c) the Inventory;

          (d) all rights and interests under any guarantees executed in
     connection with the Merchant Agreements;

          (e) all claims and causes of action of the Bank or Parent, whether
     known or unknown, relating to the Merchant Business; and

          (f) the goodwill, intangible assets and value of the Merchant Business
     as a going concern, to the extent any such value exists.

     1.2 TRANSFER AND ASSUMPTION OF ASSETS SOLD AND ASSUMED LIABILITIES.
Effective upon the Effective Date, NOVA shall by the Bill of Sale and Assignment
and Assumption Agreement in the form attached hereto as Exhibit 1.2 acquire
title to the Assets Sold and assume and agree to pay and discharge when due the
Assumed Liabilities. In addition to the Bill of Sale and Assignment and
Assumption Agreement, the sale, conveyance, transfer, assignment and delivery of
the Assets Sold by the Bank to NOVA shall be effected by such deeds, bills of
sale, endorsements, assignments, transfers and other instruments of transfer and
conveyance in such form, including warranties of title (collectively, "Transfer
Documents"), as NOVA may reasonably request, including such Transfer Documents
as NOVA may reasonably request at and after the Transition Date.

     1.3 LIABILITIES. It is understood and agreed that, except to the extent
that any of the following constitute Assumed Liabilities, NOVA shall not assume
or become liable for the payment of any debts, liabilities, losses, Credit
Losses, chargebacks, accounts payable, bank indebtedness, mortgages, or other
obligations of the Bank or any Merchant or any Agent Bank, whether the same are
known or unknown, now existing or hereafter arising, of whatever nature or
character, whether absolute or contingent, liquidated or disputed.

     1.4 CONSENT AND ASSIGNMENT.

          (a) The Bank, in cooperation with NOVA, from and after the date hereof
     and during the Transition Period, shall use its best efforts to obtain, in
     such manner and to such extent as NOVA may reasonably specify, (i) the
     agreement of the Merchants to the continuation of business with NOVA under
     the Merchant Agreements, all as contemplated by this Agreement, (ii) the
     consent of the Merchants to NOVA's conversion of such Merchants to such
     clearing bank and merchant accounting system as NOVA may specify, and (iii)
     the consent of the Merchants to NOVA's conversion of such Merchants to
     NOVA's network, all on such terms as are satisfactory to NOVA.

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          (b) Without limiting the generality of the foregoing, promptly
     following the Closing, the Bank shall cause to be delivered to each of the
     Merchants a notice, in a form specified by NOVA, of the assignment by the
     Bank, effective as of the Effective Date, of all rights in and to said
     Merchant Agreements to NOVA. In NOVA's discretion, such notice may inform
     each Merchant of NOVA's intention to convert the Merchant to NOVA's
     network, as well as to a clearing bank and merchant accounting system
     designated by NOVA.

     1.5 BOOKS AND RECORDS.

          (a) As soon after the Closing Date as is practicable, and in no event
     later than the conclusion of the Transition Period, the Bank shall cause to
     be delivered to NOVA the originals or, in the event the Bank is entitled to
     keep the originals pursuant to this Section 1.5, copies of all books,
     records and documents of the Bank relating to the Assets Sold; provided,
     however, that in no event shall such books, records and documents include
     corporate books or records involving operations other than the Merchant
     Business, and further provided that the Bank may retain the originals or
     copies of such documents other than the Merchant Agreements as may be
     reasonably necessary to the Bank's business. In addition, the Bank shall,
     at its expense, provide or cause to be provided to NOVA all information
     related to the Merchant Business that is in intangible (i.e.,
     computer-readable) form, including information necessary or desirable for
     the transfer of clearing bank responsibilities contemplated by Section
     3.5(b) (for example, a Merchant Master File Dump in ASCII format). In each
     case, however, the books and records relating to the Assets Sold for the
     period prior to the Closing Date, wherever located, that are held by a
     party hereto or under the control of a party hereto (the "Inspected Party")
     shall be open for inspection by the other party, and such other party's
     authorized agents and representatives and regulators may, at such other
     party's own expense, make such copies of any excerpts from such books,
     records and documents as it shall reasonably deem necessary; provided,
     however, that any such inspection: (i) shall be conducted during normal
     business hours from time to time reasonably established by the Inspected
     Party; (ii) shall, if the Inspected Party so requests, be conducted in the
     presence of an officer or designated representative of the Inspected Party;
     and (iii) shall be conducted in accordance with reasonable security
     programs and procedures from time to time established by the Inspected
     Party, including such confidentiality agreements as the Inspected Party may
     reasonably request.

          (b) All books and records relating to the Assets Sold shall be
     maintained by NOVA, or the Bank, as the case may be, for a period of three
     (3) years after the Closing Date, unless the parties shall, applicable law
     permitting, agree upon a shorter period; provided, however, that in the
     event that, as of the end of such period, any taxable year of NOVA or the
     Bank is still under examination or open for examination by any taxing
     authority and that party has given notice of that fact to the other party,
     such books and records shall be maintained (or, alternatively, delivered by
     the Inspected Party to the other party) until the date, determined
     reasonably and in good faith, specified for maintenance of such records in
     such notice. Prior to the destruction of any books and records relating to
     the Assets Sold, the party in possession of such books and records shall
     offer them to the other party hereto. Pursuant to the above, the Bank
     specifically

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     agrees to make available to NOVA, and promptly deliver to NOVA at NOVA's
     request, any historical records of Merchant sales and monthly statements.

                                   ARTICLE II

                     CONSIDERATION FOR ASSETS SOLD; CLOSING

     2.1 PURCHASE PRICE. As consideration for the Assets Sold, NOVA shall pay an
aggregate purchase price of Five Million Eight Hundred Seventy-Five Thousand and
No/100 Dollars ($5,875,000.00), payable at the Closing by wire transfer of
immediately available funds to an account that is designated in writing by the
Bank no later than three (3) days prior to the Closing Date.

     2.2 CLOSING. Subject to the satisfaction or waiver of the conditions set
forth herein, the consummation of the purchase and sale of the Assets Sold and
the assumption of the Assumed Liabilities (the "Closing") shall take place on
December 21, 2004 at 10:00 a.m. (Atlanta, Georgia time) or on such other date at
such other time as the parties shall agree in writing (the "Closing Date"), to
be effective as of the Effective Date, and shall take place through the
execution and exchange, via facsimile transmission, of this Agreement, the other
Operative Documents and the other documents and agreements herein contemplated.
The parties acknowledge and agree that upon mutual exchange and receipt of
signature pages via facsimile, and upon receipt by the Bank of the purchase
price herein contemplated, this Agreement and the other documents and
instruments delivered in connection herewith shall be deemed effective, and the
transactions hereby contemplated shall be deemed consummated, notwithstanding
any party's failure or refusal to deliver original (i.e. non-facsimile)
signature pages.

                                  ARTICLE III

                                TRANSITION PERIOD

     3.1 ORDERLY TRANSITION. The Bank covenants and agrees to use commercially
reasonable efforts, as reasonably instructed by NOVA, to effect an orderly
transition of the Merchant Business during the Transition Period in respect of
the Assets Sold and the Assumed Liabilities, including fulfilling its
obligations under Section 1.4 hereof. In order to further such purpose, the Bank
agrees that during the Transition Period it shall execute such documents as are
reasonably deemed necessary or convenient by NOVA, including documents as may be
appropriate to cause the BIN and ICA numbers owned by the Bank in connection
with the Merchant Business to be transferred to such "Principal Member" of the
Credit Card Associations as may be designated by NOVA, to evidence the
agreements referred to in, and transactions contemplated by, this Agreement,
consistent with the rules and regulations of the Credit Card Associations and
NOVA's practices and procedures. In connection with the activities contemplated
by this Article III, NOVA shall replace Equipment held by Merchants that is not
compatible with the NOVA networks, as necessary, at its expense.

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     3.2 SERVICES DURING THE TRANSITION PERIOD.

          (a) During the Transition Period, the Bank shall perform on behalf of
     and for the account of NOVA at the same location(s) presently used to
     conduct the Merchant Business all of the services performed by the Bank in
     connection with the Merchant Business prior to the Closing Date. The Bank
     shall perform such services substantially in the same manner and with no
     less than the same degree of care as performed in connection with the
     Merchant Business prior to the Closing Date, and shall otherwise perform
     such services in accordance with such performance standards, including
     underwriting guidelines, as are specified by NOVA. In performing such
     services, the Bank shall follow the reasonable instructions of NOVA. During
     the Transition Period, NOVA and the Bank agree to cooperate, in good faith,
     in effecting the BIN reconciliation provisions and procedures set forth on
     Schedule 3.2(a) attached hereto.

          (b) Without limiting the generality of the foregoing, during the
     Transition Period, the Bank shall continue to provide credit to Merchants
     under the same terms and conditions and in the same time frame as presently
     provided. In addition, the Bank shall, from time to time at NOVA's request,
     use its commercially reasonable efforts to assist NOVA in procuring
     executed Merchant Agreements from those Merchants set forth on Schedule
     6.7(b).

          (c) During the Transition Period, and in performing services
     hereunder, the Bank shall comply in all respects with the rules and
     regulations of the Credit Card Associations and the EFT Networks, and shall
     not take, or fail to take, any actions with respect to the Merchant
     Business which would constitute a violation of such rules and regulations.

          (d) NOVA shall reimburse the Bank for direct, out-of-pocket, expenses
     incurred by the Bank during the Transition Period that are related to the
     conversion and transitional activities described in this Article III and
     the continued conduct of the Merchant Business during the Transition Period
     (collectively, "Transition Expenses") according to and in the amounts set
     forth on Schedule 3.2(d). All reimbursements hereunder shall be made within
     fourteen (14) days following NOVA's receipt from the Bank of written
     evidence, reasonably satisfactory to NOVA, detailing the amount of the
     reimbursement due pursuant to this Section 3.2(d).

     3.3 REVENUE DURING THE TRANSITION PERIOD. In performing services during the
Transition Period on behalf of and for the account of NOVA, the Bank shall,
beginning on the Effective Date and continuing throughout the Transition Period,
on behalf of and for the account of NOVA, collect revenue generated by the
Merchant Business (collectively, "Revenue"). The Bank acknowledges and agrees
that it will not deduct any Transition Expenses from the Revenue; rather, such
Transition Expenses shall separately be reimbursed by NOVA pursuant to and in
accordance with Section 3.2(d) hereof. In connection with the Transition Period,
the Bank shall pay to NOVA monthly (by the 10th day of each month) Revenue for
(i) all original sales transactions generated pursuant to the Assets Sold and
occurring on or after the Effective Date, and (ii) all the other revenue
generated by the Assets Sold and occurring on or after the Effective Date. At
the time of each such payment, the Bank shall also furnish to NOVA a certificate
of an

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authorized financial officer certifying the amount due to NOVA and showing
the calculation thereof in such reasonable detail as NOVA may request.

     3.4 EMPLOYEES. During the Transition Period, the Bank shall use all
reasonable efforts to ensure that the employees utilized in the Merchant
Business on and prior to the date hereof by the Bank will continue in the employ
of the Bank, performing the duties relating to the Merchant Business theretofore
performed by it, as reasonably instructed by NOVA during the Transition Period.
Further, the Bank shall use all reasonable efforts to provide adequate and
appropriate skilled staffing in connection with the operation of the Merchant
Business during the Transition Period.

     3.5 CLEARING BANK ARRANGEMENT.

          (a) In order to permit an orderly transition of the processing of
     Credit Card and Debit Card transactions, during the Transition Period, the
     Bank shall continue to act as a clearing bank for NOVA with respect to
     Credit Card and Debit Card transactions processed under the Merchant
     Agreements, all in accordance with the rules and regulations of the Credit
     Card Associations and the EFT Networks, for a period of time ending not
     later than the Transition Date.

          (b) At the request of NOVA, the Bank shall execute appropriate
     documents to evidence the transfer of the clearing bank responsibilities
     under the Merchant Agreements to the person designated by NOVA to effect
     such transfer. In addition, the Bank shall render such other necessary
     assistance as NOVA may reasonably request.

     3.6 EXTENSION OF TRANSITION PERIOD. The Transition Period may be extended
upon the mutual agreement of the parties, and in such event, the parties shall
continue to comply with their obligations under this Article III for such
extended period.

                                   ARTICLE IV

                  CERTAIN COVENANTS AND AGREEMENTS OF THE BANK

     4.1 TRANSFER TAXES. All sales or transfer taxes, including stock transfer
taxes, document recording fees, real property transfer taxes, and excise taxes,
arising out of or in connection with the consummation of the transactions
contemplated hereby, if any, shall be paid by the Bank.

     4.2 CONFIDENTIALITY OF INFORMATION. On and after the date hereof, the Bank
and its officers, employees, agents and representatives shall treat all
information, books and records, originals or copies of books or records which
are retained or obtained by it pursuant to Section 1.5, and all information
learned or obtained about NOVA's business or relating to the Merchant Business,
as confidential and will not disclose such information to third parties except
as required by law, as needed in connection with a lawsuit, claim, litigation or
other proceeding or in connection with tax or regulatory matters and except to
the extent that such information is already in the public domain, or
subsequently enters the public domain, other than as a result of the breach of
the Bank's obligations under this Section 4.2. The Bank and its officers,
employees, agents and representatives shall not use the information described in
this Section 4.2

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in any manner that might reasonably be anticipated to adversely affect the
Merchant Business or NOVA's relations with Merchants or other persons or
entities. The covenants contained in this Section 4.2 shall survive for a period
of five (5) years after the date hereof.

     4.3 NOTICE OF BREACH OR POTENTIAL BREACH. The Bank shall promptly notify
NOVA of any change, circumstance or event which may prevent the Bank from
complying with any of its obligations hereunder.

     4.4 FURTHER ASSURANCES. On and after the Closing Date, the Bank shall (i)
give such further assurances to NOVA and execute, acknowledge and deliver all
such acknowledgments and other instruments and take such further action as NOVA
may reasonably request to effectuate the transactions contemplated by this
Agreement, including the transfer of the Assets Sold and assumption of the
Assumed Liabilities, and (ii) use all reasonable efforts to assist NOVA in the
orderly transition referred to in Article III.

     4.5 COLLECTIONS. The Bank shall use all reasonable efforts after the
Transition Date to assist NOVA, at NOVA's request, in processing amounts in
respect of any chargeback or other Credit Loss received or identified in
connection with the Merchant Business and relating to or arising out of any
original sales transaction occurring on or after the Effective Date. NOVA shall
be responsible for all costs and expenses relating to such collection efforts,
including costs and expenses of collection letters, litigation, arbitration
proceedings and similar actions. Without limiting the foregoing, the Bank
agrees, if requested by NOVA, to continue processing such chargebacks through
the Bank's BIN and ICA for up to 180 days after the Transition Date.

                                   ARTICLE V

                    CERTAIN COVENANTS AND AGREEMENTS OF NOVA

     5.1 CONFIDENTIALITY OF INFORMATION. On and after the date hereof, NOVA and
its officers, employees, agents and representatives shall treat all information
learned, or obtained prior to the date of this Agreement or during the
Transition Period about the Bank's businesses, other than the Merchant Business,
as confidential and will not disclose such information to third parties except
as required by law, as needed in connection with a lawsuit, claim, litigation or
other proceeding or in connection with tax or regulatory matters and except to
the extent that such information is already in the public domain, or
subsequently enters the public domain, other than as a result of the breach of
NOVA's obligations under this Section 5.1. NOVA and its officers, employees,
agents, and representatives shall not use the information described in this
Section 5.1 in any manner that might reasonably be anticipated to materially
adversely affect the Bank's financial condition, business or agreements or
arrangements with any other person or entity. Notwithstanding the foregoing, the
Bank and Parent acknowledge and agree that the restrictions contained in this
Section 5.1 shall not apply to any disclosures of such confidential information
by NOVA in connection with, or as may result from (a) the provision by NOVA of
Merchant Services under this Agreement or the other Operative Documents, or
otherwise in connection with NOVA's performance of its obligations hereunder or
thereunder, (b) such disclosure as may be required by applicable law or
regulation or Payment Network Regulations, (c) such disclosure as is contained
in or required to prepare any financial statements (including the notes
thereto), (d) appropriate or necessary disclosure to banking authorities or
regulators,

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including as may result from NOVA's status as an affiliate of U.S. Bancorp or
another bank, or (e) disclosure to U.S. Bancorp's Corporate and Compliance
Units. The covenants contained in this Section 5.1 shall survive for a period of
five (5) years after the date hereof.

     5.2 NOTICE OF BREACH OR POTENTIAL BREACH. NOVA shall promptly notify the
Bank of any change, circumstance or event which may prevent NOVA from complying
with any of its obligations hereunder.

     5.3 FURTHER ASSURANCES. On and after the Closing Date, NOVA shall (i) give
such further assurances to the Bank and execute, acknowledge and deliver all
such acknowledgments and other instruments and take such further action as the
Bank may reasonably request to effectuate the transactions contemplated by this
Agreement, including the transfer of the Assets Sold and assumption of the
Assumed Liabilities and (ii) use all reasonable efforts to assist the Bank in
the orderly transition referred to in Article III.

                                   ARTICLE VI

              REPRESENTATIONS AND WARRANTIES OF THE BANK AND PARENT

     The Bank and Parent hereby jointly and severally make the following
representations and warranties to NOVA as of the date hereof and as of the
Effective Date:

     6.1 ORGANIZATION; OWNERSHIP. The Bank is a state-chartered bank organized
under the laws of the State of Oregon and is authorized to conduct its business
as presently conducted (including the Merchant Business) under those laws and
all other applicable laws. Parent is a corporation organized under the laws of
the State of Oregon and is authorized to conduct its business as presently
conducted under those laws and other applicable laws. Parent owns one hundred
percent (100%) of the issued and outstanding shares of capital stock of the
Bank, and the Bank is the only Affiliate of Parent that conducts banking
business.

     6.2 AUTHORITY. The Bank and Parent have the right, power, capacity and
authority to enter into and deliver the Operative Documents to which each is a
party, to perform their respective obligations under the Operative Documents to
which each is a party, and to effect the transactions contemplated by the
Operative Documents to which each is a party, and no person or entity other than
the Bank has any interest in the Merchant Business or the Merchant Agreements.
The execution, delivery and performance of the Operative Documents to which each
of the Bank and Parent is a party have been approved by all requisite action on
the part of the Bank and Parent, and when executed and delivered pursuant
hereto, the Operative Documents to which each of the Bank and Parent is a party
will constitute valid and binding obligations of the Bank and Parent enforceable
in accordance with their terms.

     6.3 GOVERNMENT NOTICES. The Bank has not received notice from any federal,
state or other governmental agency or regulatory body indicating that such
agency or regulatory body would oppose or not grant or issue its consent or
approval, if required, with respect to the transactions contemplated by the
Operative Documents.

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     6.4 NO VIOLATIONS.

          (a) The execution and delivery by the Bank of the Operative Documents,
     and its performance thereunder, will not (i) violate, conflict with, result
     in a breach of or constitute (with or without notice or lapse of time or
     both) a default under any material agreement, indenture, mortgage or lease
     to which the Bank is a party or by which the Bank or its properties, or the
     Merchant Business, are bound; (ii) constitute a material violation by the
     Bank of any law or government regulation applicable to the Bank or the
     Merchant Business; (iii) violate any provision of the Charter or Bylaws (or
     similar governing documents) of the Bank; or (iv) violate in any material
     respect any order, judgment, injunction or decree of any court, arbitrator
     or governmental body against or binding upon the Bank or the Merchant
     Business.

          (b) With respect to the Merchant Business, the Bank is not, has not
     been and will not be (by virtue of any past or present action, omission to
     act, contract to which the Bank is a party or any occurrence or state of
     facts whatsoever) in violation of any applicable local, state or federal
     law, ordinance, regulation, order, injunction or decree, or any other
     requirement of any governmental body, agency or authority or court binding
     on it, or relating to its properties or businesses (including any antitrust
     laws and regulations).

          (c) The Bank has properly compared the Merchants against the required
     government lists (including, but not limited to, the Office of Foreign
     Assets Control SDN List and USA Patriot Act Section 314(a)) and has taken
     appropriate actions with regard to all Merchants that appear on any of the
     government lists. The latest comparison of the Merchants against the Office
     of Foreign Assets Control SDN List occurred not more than fourteen (14)
     days prior to the date of this Agreement.

     6.5 ASSETS SOLD. The Bank is the sole owner of all rights, title and
interest in and to the Assets Sold, free and clear of all title defects or
objections, assignments, liens, encumbrances of any nature whatsoever,
restrictions, security interests, rights of third parties, or other liabilities,
and has good and valid title to the Assets Sold. To the Knowledge of the Bank,
the Equipment being sold hereunder is in good operating condition, ordinary wear
and tear excepted, and has been reasonably maintained and repaired. The
Equipment is of the quantity and type represented on Schedule 6.5(a), which
schedule is true, accurate, correct and complete in all material respects and
which Schedule indicates any Equipment that is leased to third parties (and the
identity of said parties). To the Knowledge of the Bank, the Inventory consists
of items of a quality and quantity usable and saleable in the ordinary course of
the Merchant Business. The Inventory is set forth on Schedule 6.5(b), which is
true, accurate, correct and complete in all material respects. Since November
30, 2004, no items of Equipment or Inventory have been sold or disposed of
except through sales or transactions in the ordinary course of business,
consistent with past practices. The Assets Sold include all rights, properties
and other assets necessary to permit NOVA to conduct the Merchant Business in
substantially the same manner as the Bank's Merchant Business has heretofore
been conducted, without any need for replacement, refurbishment or extraordinary
repair.

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     6.6 FINANCIAL INFORMATION CONCERNING THE MERCHANT BUSINESS.

          (a) The financial and other information concerning the Merchant
     Business attached hereto as Schedule 6.6(a) (collectively, the "Financial
     Information") is true, accurate, complete and correct in all material
     respects and fairly presents the financial condition of the Merchant
     Business in respect of the Assets Sold as of and for the periods indicated
     on such information. Further, the Financial Information does not contain
     any untrue statement of material fact, nor omit any material fact necessary
     in order to make the statements made and information presented in the
     Financial Information, not misleading. This representation and warranty may
     not be limited or satisfied by inconsistent information provided after the
     date hereof. Since December 31, 2003, there has been no material adverse
     change in the Merchant Business.

          (b) The information relative to Merchants' annualized (i) Credit Card
     sales volume and (ii) Debit Card sales volume set forth on Schedule 6.6(b)
     is true, accurate, correct and complete in all material respects as of the
     date hereof and for the periods indicated, and such information does not
     contain any untrue statement of material fact nor omit any material fact
     necessary in order to make the statements made and information presented
     therein, not misleading. This representation and warranty may not be
     limited or satisfied by inconsistent information provided after the date
     hereof.

     6.7 AGREEMENTS RELATING TO THE MERCHANT BUSINESS.

          (a) Schedule 6.7(a)(i) sets forth a complete list of all Merchants.
     The Bank has no Agent Banks or Agent Bank Agreements. The Bank is not in
     default (and would not be in default upon notice, lapse of time or both)
     under any provision of the Merchant Agreements. The Bank does not have any
     reason to suspect, and has not received any notice of, fraud by, or
     bankruptcy or contemplated bankruptcy of, any Merchant or any other party
     or guarantor to any of the Merchant Agreements, and has not received any
     notice of default or adverse comment from any regulatory authority in
     respect of any Merchant. Except as set forth on Schedule 6.7(a)(ii), the
     Bank has neither given nor received notice of election to terminate any
     Merchant Agreement. Except as set forth on Schedule 6.7(a)(ii), all
     Merchants currently process Credit Card transactions. Except as set forth
     on Schedule 6.7(a)(iii), each Merchant is a party to a Merchant Agreement
     with the Bank. No Merchant (x) is a high-risk inbound teleservices
     merchant, (y) is involved in adult-oriented business, or (z) otherwise
     engages in a business activity that would result in additional fees or
     charges being imposed by any Credit Card Association, including but not
     limited to fees relating to Internet payment service providers.

          (b) Except as set forth on Schedule 6.7(b), the Bank is a party to a
     Merchant Agreement with each Merchant, and has in its possession, and shall
     deliver to NOVA in accordance with Section 1.5 hereof, an original executed
     copy of each Merchant Agreement. All agreements between the Bank and the
     Merchants are in the form of one of the Standard Merchant Agreements
     attached hereto as Exhibit 6.7(b)(i), and are freely assignable by the Bank
     without the consent of the applicable Merchant or any other party.

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          (c) Except as set forth on Schedule 6.7(c), the Bank has obtained
     guarantees from principals or third parties of each Merchant. The Bank has
     in its possession, and shall deliver to NOVA in accordance with Section 1.5
     hereof, an original executed copy of all such guarantees. All such
     guarantees are in the form of the Guarantee attached hereto as Exhibit
     6.7(c) (the "Standard Guarantee"), and are freely assignable by the Bank
     without the consent of the applicable Merchant or any other party.

          (d) The Bank has no ISOs or ISO Agreements. Except with respect to any
     agreements listed on Schedule 6.7(d), the Bank has no agreements, written
     or oral, with any agent bank, other association, institution, independent
     sales organization, or any other third party which provides for any one or
     more of the following: (i) the deposit of Credit Card or Debit Card
     transaction records; (ii) the settlement of Credit Card or Debit Card
     transactions; (iii) the processing of Credit Card or Debit Card
     transactions; or (iv) the referral of merchants to the Bank (collectively,
     "Other Agreements"). The Bank has provided NOVA with true, correct and
     complete copies of each Other Agreement and each Other Agreement is freely
     assignable by the Bank without the prior consent of any other party.

          (e) Except for disputes that have arisen in the ordinary course of
     business and that (i) are not material or otherwise significant in nature
     or amount, and (ii) have not been referred to legal counsel, whether
     internal or external, the Bank is not engaged in any dispute with any
     Merchant or otherwise relating to the Merchant Business. The Bank does not
     have any reason to believe, and has not received any notice, written or
     oral, that the consummation of the transactions contemplated hereunder will
     have any adverse effect on the business relationship of the Bank with any
     Merchant.

          (f) The Bank is a member in good standing of the Credit Card
     Associations. The Bank and the Merchant Business are in compliance in all
     material respects with all applicable rules and regulations and
     certification requirements of the Credit Card Associations. The Bank has
     provided NOVA true and correct copies of all contracts and agreements
     between the Bank and any of the foregoing entities.

          (g) The Bank does not maintain any Reserve Accounts in connection with
     the Merchant Agreements or the Merchant Business.

          (h) Schedule 6.7(h) sets forth the credit and charge cards, other than
     the Credit Card Associations, for which the Bank has contracted to provide
     authorization and data capture services.

     6.8 MERCHANTS' CREDIT. Schedule 6.8 lists the fifty (50) Merchants with the
highest dollar value of Credit Card transactions processed during the twelve
(12) month period ending October 31, 2004 (collectively, the "Top 50
Merchants"). The Bank does not have Knowledge of (a) any Top 50 Merchant that
has a credit facility with the Bank whose credit facility will not or cannot be
continued, renewed or extended, or (b) any Top 50 Merchant who plans to apply
for new or additional credit with the Bank, and whose application will be denied
or rejected, in whole or in part. Each Top 50 Merchant is a party to a Merchant
Agreement with the Bank, copies of which have been delivered to NOVA.

                                       11

<PAGE>

     6.9 EFT NETWORKS. The Bank is a member in good standing of the electronic
funds transfer networks identified on Schedule 6.9 attached hereto (the "EFT
Networks"). The Bank and the Merchant Business are in full compliance in all
respects with all applicable rules and regulations of the EFT Networks.

     6.10 CONSENTS AND APPROVALS.

          (a) No action of, or filing with, any governmental or public body is
     required by the Bank to authorize, or is otherwise required in connection
     with, the execution and delivery by the Bank of this Agreement or the other
     Operative Documents or, if required, the requisite filing has been
     accomplished and all necessary approvals obtained.

          (b) Except for the Waiver and except as set forth on Schedule 6.10, no
     filing, consent or approval is required by virtue of the execution hereof
     or any other Operative Document by the Bank or the consummation of any of
     the transactions contemplated herein by the Bank to avoid the violation or
     breach of, or the default under, or the creation of a lien on any of the
     Assets Sold pursuant to the terms of, any law, regulation, order, decree or
     award of any court or governmental agency or any lease, agreement,
     contract, mortgage, note, license, or any other instrument to which the
     Bank is a party or to which the Bank or any of the Assets Sold is subject.

     6.11 LEASES. Schedule 6.11 contains a complete and accurate list of all (i)
leases (including any capital leases) and lease-purchase arrangements pursuant
to which the Bank leases real or personal property related to the Merchant
Business from others, and (ii) lease, rental and lease-purchase arrangements
pursuant to which the Bank leases property to any Merchant or other party in
connection with the Merchant Business. Schedule 6.11 specifies which of such
leases, if any, are capital leases. The Bank has made available to NOVA a true,
correct and complete copy of each of the items listed on Schedule 6.11.

     6.12 INTELLECTUAL PROPERTY.

          (a) With respect to the Merchant Business, the Bank has made available
     to NOVA true, correct and complete copies of each trademark and service
     mark registration or application therefor.

          (b) The Bank has not heretofore infringed upon, and is not now
     infringing upon, and the continuation of the Merchant Business as presently
     conducted will not infringe upon, any patent, service mark, trade name,
     trademark, copyright, trade secret, or other intellectual property,
     confidential information or proprietary information belonging to any other
     person and the Bank has not agreed to indemnify any person for or against
     any infringement.

          (c) To the Knowledge of the Bank, no person is infringing upon any of
     the Bank's patents, service marks, trademarks, copyrights, trade secrets,
     or other intellectual property that is or are related to the Merchant
     Business.

     6.13 LITIGATION AND CLAIMS. There is no litigation, claims, suits, actions,
investigations, indictments or informations, proceedings or arbitrations,
grievances or other

                                       12

<PAGE>

procedures (including grand jury investigations, actions or proceedings, and
product liability and workers' compensation suits, actions or proceedings, and
investigations conducted by any Credit Card Association) that are pending, or to
the Knowledge of the Bank or Parent, threatened, in or before any court,
commission, arbitration tribunal, or judicial, governmental or administrative
department, body, agency, administrator or official, grand jury, Credit Card
Association, or any other entity or forum for the resolution of grievances,
against the Bank and relating in any way to the Merchant Business.

     6.14 MERCHANT BUSINESS EMPLOYEES. The Bank has no Merchant Business
Employees.

     6.15 LABOR; COLLECTIVE BARGAINING. There are no labor contracts, collective
bargaining agreements, letters of understanding or other arrangements, formal or
informal, with any union or labor organization covering any of the Merchant
Business Employees and none of said employees are represented by any union or
labor organization.

     6.16 REQUIRED LICENSES AND PERMITS. No licenses, permits or other
authorizations of governmental authorities are necessary for the conduct of the
Merchant Business by the Bank.

     6.17 AGREEMENTS, CONTRACTS AND COMMITMENTS. Except as set forth and
specifically identified in Sections (or the corresponding Schedules) 6.7, 6.11,
6.14, 6.15 and 6.19:

          (a) The Bank does not have any agreement, contract, commitment or
     relationship, whether written or oral, related to the Merchant Business, by
     which NOVA could be bound;

          (b) The Bank does not have any outstanding contract related to the
     Merchant Business, written or oral, with any officer, employee, agent,
     consultant, advisor, salesman, manufacturer's representative, distributor,
     dealer, subcontractor, or broker that is not cancelable by the Bank, on
     notice of not longer than thirty (30) days and without liability, penalty
     or premium of any kind, except liabilities which arise as a matter of law
     upon termination of employment, or any agreement or arrangement related to
     the Merchant Business providing for the payment of any bonus or commission
     based on sales or earnings;

          (c) Except as set forth on Schedule 6.17(c), the Bank is not subject
     to any contract or agreement related to the Merchant Business containing
     covenants limiting the freedom of the Bank to compete in any line of
     business in any geographic area;

          (d) With respect to the Merchant Business, there is no contract,
     agreement or other arrangement entitling any person or other entity to any
     profits, revenues or cash flows of the Bank or requiring any payments or
     other distributions based on such profits, revenues or cash flows.

     6.18 AGREEMENTS IN FULL FORCE AND EFFECT. Except as expressly set forth on
Schedule 6.18, all contracts and agreements referred to, or required to be
referred to, herein or in any Schedule delivered hereunder are valid and
binding, and are in full force and effect and are enforceable in accordance with
their terms. The Bank has not received notice of any pending or

                                       13

<PAGE>

threatened bankruptcy, insolvency or similar proceeding with respect to any
party to such agreements, and no event has occurred which (whether with or
without notice, lapse of time or the happening or occurrence of any other event)
would constitute a default thereunder by the Bank, or to the knowledge of the
Bank, any other party thereto.

     6.19 VENDORS AND SUPPLIERS. Schedule 6.19 sets forth a complete and
accurate list of each supplier to the Bank of goods and services directly
related to the Merchant Business that charged, billed or invoiced the Bank in
excess of $10,000 during the twelve (12) month period ending November 30, 2004.
The Bank has provided to NOVA true and correct copies of all agreements and
contracts between the Bank and any of the persons and entities listed on
Schedule 6.19.

     6.20 ABSENCE OF CERTAIN CHANGES AND EVENTS. Since December 31, 2003, the
Bank has conducted the Merchant Business only in the ordinary course, and has
not:

          (a) suffered any damage or destruction materially adversely affecting
     the Merchant Business;

          (b) suffered any material adverse change in the working capital,
     assets, liabilities, financial condition, or business prospects relating to
     the Merchant Business, or relationships with any suppliers listed on
     Schedule 6.19;

          (c) except for customary increases based on term of service or regular
     promotion of non-officer employees, increased (or announced any increase
     in) the compensation payable or to become payable to any Merchant Business
     Employee, or increased (or announced any increase in) any bonus, insurance,
     pension or other employee benefit plan, payment or arrangement for Merchant
     Business Employees, or entered into or amended any employment, consulting,
     severance or similar agreement with any Merchant Business Employee;

          (d) incurred, assumed or guaranteed any liability or obligation
     (absolute, accrued, contingent or otherwise) with respect to the Merchant
     Business, other than a non-material amount in the ordinary course of
     business consistent with past practice;

          (e) paid, discharged, satisfied or renewed any claim, liability or
     obligation with respect to the Merchant Business, other than payment of a
     non-material amount in the ordinary course of business and consistent with
     past practice;

          (f) permitted any of the Assets Sold to be subjected to any mortgage,
     lien, security interest, restriction, charge or other encumbrance of any
     kind;

          (g) waived any material claims or rights with respect to the Merchant
     Business;

          (h) sold, transferred or otherwise disposed of any of the assets used
     in the Merchant Business, except non-material assets in the ordinary course
     of business consistent with past practice;

                                       14

<PAGE>

          (i) made any single capital expenditure or investment with respect to
     the Merchant Business, in excess of $10,000;

          (j) made any change in any method, practice or principle of financial
     or tax accounting that in any manner materially affected the Merchant
     Business or any financial information relating to or derived from the
     Merchant Business;

          (k) managed working capital components relating to the Merchant
     Business, including cash, receivables, other current assets, trade payables
     and other current liabilities in a fashion inconsistent with past practice,
     including failing to sell inventory and other property in an orderly and
     prudent manner or failing to make all budgeted and other normal capital
     expenditures, repairs, improvements and dispositions;

          (l) paid, loaned, advanced, sold, transferred or leased any Asset Sold
     to any employee, except for normal compensation involving salary and
     benefits;

          (m) entered into any commitment or transaction, other than a
     non-material commitment or transaction entered into in the ordinary course
     of business consistent with past practice, affecting the Merchant Business;
     or

          (n) agreed in writing, or otherwise, to take any action described in
     this Section.

     6.21 FINDER'S FEES. Neither the Bank nor Parent has made any commitment or
done any act that would create any liability to any person other than themselves
for any brokerage, finder's or similar fee or commission in connection with this
Agreement or the transactions contemplated hereby.

     6.22 DISCLOSURE. No representations, warranties, assurances or statements
by the Bank or Parent in this Agreement, and no statement contained in any
document (including the Financial Information and the Schedules), certificates
or other writings furnished by the Bank or Parent (or caused to be furnished by
the Bank or Parent) to NOVA or any of its representatives pursuant to the
provisions hereof, contains any untrue statement of material fact, or omits or
will omit to state any fact necessary, in light of the circumstances under which
such statement was made, in order to make the statements herein or therein not
misleading.

                                  ARTICLE VII

                     REPRESENTATIONS AND WARRANTIES OF NOVA

     NOVA makes the following representations and warranties to the Bank and
Parent as of the date hereof and as of the Effective Date:

     7.1 ORGANIZATION. NOVA is a corporation duly organized and validly existing
under the laws of the State of Georgia and is authorized to conduct its business
under those laws.

     7.2 AUTHORITY. NOVA has the right, power, capacity and authority to enter
into and deliver the Operative Documents to which it is a party, to perform its
obligations under the

                                       15

<PAGE>

Operative Documents to which it is a party, and to effect the transactions
contemplated by the Operative Documents to which it is a party. The execution,
delivery and performance of the Operative Documents to which NOVA is a party
have been approved by all requisite corporate action on the part of NOVA, and,
when executed and delivered pursuant hereto, the Operative Documents to which
NOVA is a party will constitute valid and binding obligations of NOVA
enforceable in accordance with their terms.

     7.3 GOVERNMENTAL NOTICES. NOVA has not received notice from any federal,
state or other governmental agency or regulatory body indicating that such
agency or regulatory body would oppose or not grant or issue its consent or
approval, if required, with respect to the transactions contemplated by the
Operative Documents to which it is a party.

     7.4 NO VIOLATIONS. The execution and delivery by NOVA of the Operative
Documents to which it is a party and its performance thereunder will not: (i)
violate, conflict with, result in a breach of or constitute (with or without
notice or lapse of time or both) a default under, any material agreement,
indenture, mortgage or lease to which NOVA is a party or by which it or its
properties are bound; (ii) constitute a material violation by NOVA of any
material law or governmental regulation applicable to NOVA; (iii) violate any
provision of the Articles of Incorporation or Bylaws of NOVA; or (iv) violate in
any material respect any order, judgment, injunction or decree of any court,
arbitrator or governmental body against or binding upon NOVA.

     7.5 CONSENTS AND APPROVALS.

          (a) No action of, or filing with, any governmental or public body is
     required by NOVA to authorize, or is otherwise required in connection with,
     the execution and delivery by NOVA of this Agreement or the other Operative
     Documents to which it is a party or, if required, the requisite filing has
     been accomplished and all necessary approvals obtained.

          (b) No filing, consent or approval is required by virtue of the
     execution hereof or any other Operative Document to which it is a party by
     NOVA or the consummation of any of the transactions contemplated herein by
     NOVA to avoid the violation or breach of any law, regulation, order, decree
     or award of any court or governmental agency, or any lease, agreement,
     contract, mortgage, note, license, or any other instrument to which NOVA is
     a party or is subject, or, if required, the requisite filing has been
     accomplished and all necessary approvals obtained.

     7.6 FINDER'S FEES. NOVA has not made any commitment or done any act that
would create any liability to any person other than itself for any brokerage,
finder's or similar fee or commission in connection with this Agreement or the
transactions contemplated hereby.

                                       16

<PAGE>

                                  ARTICLE VIII

                            COVENANTS OF THE PARTIES

     The parties hereto hereby covenant and agree as follows:

     8.1 CREDIT CARD ASSOCIATION FILINGS. NOVA and the Bank shall cooperate with
each other to file with the Credit Card Associations and the EFT Networks any
document or information that each such Credit Card Association or EFT Network
deems to be required or desirable to be filed in order for the acquisition
contemplated by this Agreement to be completed.

     8.2 EMPLOYEE BENEFIT PLANS. NOVA shall not adopt, assume or otherwise
become responsible for, either primarily or as a successor employer, any assets
or liabilities of any employee benefit plans, arrangements, commitments or
policies currently provided by the Bank or by any member of the Bank's
controlled group of corporations; and if and to the extent that NOVA is deemed
by law or otherwise to be liable as a successor employer for such purposes, the
Bank shall indemnify NOVA for the full and complete costs, fees and other
liabilities which result. In particular, NOVA shall not assume liability for any
group health continuation coverage or coverage rights under Internal Revenue
Code Section 4980B and ERISA Section 606 which exist as of the Closing Date or
the Effective Date or which may arise as a result of the Bank's termination of
any group health plan or plans, and if and to the extent that NOVA is deemed by
law or otherwise to be liable as a successor employer for such group health
continuation coverage purposes, the Bank shall indemnify NOVA for the full and
complete costs, fees and other liabilities which result.

                                   ARTICLE IX

                CONDITIONS TO OBLIGATIONS OF THE BANK AND PARENT

     Each of the obligations of the Bank and Parent to be performed hereunder
shall be subject to the satisfaction (or waiver by the Bank and Parent) at or
before the Closing of each of the following conditions:

     9.1 REQUIRED GOVERNMENTAL APPROVALS. All governmental authorizations,
consents and approvals necessary for the valid consummation of the transactions
contemplated hereby shall have been obtained and shall be in full force and
effect. All applicable governmental pre-acquisition filing, information
furnishing and waiting period requirements shall have been met or such
compliance shall have been waived by the governmental authority having authority
to grant such waivers.

     9.2 MARKETING AGREEMENT. NOVA shall have executed and delivered to the Bank
the Marketing Agreement.

     9.3 BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT. NOVA shall have
executed and delivered to the Bank the Bill of Sale and Assignment and
Assumption Agreement.

     9.4 CREDIT CARD ASSOCIATIONS. All filings required pursuant to Section 8.1
shall have been made, and all approvals required pursuant to Section 8.1 shall
have been received, and

                                       17

<PAGE>

neither the Bank nor NOVA shall have received any objection of any kind from a
Credit Card Association either in response to the filings required under Section
8.1 or otherwise.

     9.5 DOCUMENTS SATISFACTORY IN FORM AND SUBSTANCE. All agreements,
certificates, opinions and other documents delivered by NOVA to the Bank
hereunder shall be in form and substance satisfactory to counsel of the Bank, in
the exercise of such counsel's reasonable judgment.

                                   ARTICLE X

                        CONDITIONS TO OBLIGATIONS OF NOVA

     The obligations of NOVA to be performed hereunder shall be subject to the
satisfaction (or waiver by NOVA) at or before the Closing of each of the
following conditions:

     10.1 REQUIRED GOVERNMENTAL APPROVALS. All governmental authorizations,
consents and approvals necessary for the valid consummation of the transactions
contemplated hereby shall have been obtained and shall be in full force and
effect. All applicable governmental pre-acquisition filing, information
furnishing and waiting period requirements shall have been met or such
compliance shall have been waived by the governmental authority having authority
to grant such waivers.

     10.2 OTHER NECESSARY CONSENTS. The Bank shall have obtained all consents
and approvals (and estoppel certificates) listed on Schedule 6.10. With respect
to each such consent or approval, NOVA shall have received written evidence,
satisfactory to it, that such consent or approval has been duly and lawfully
filed, given, obtained or taken and is effective, valid and subsisting.

     10.3 NON-COMPETITION AGREEMENT. The Bank and Parent shall have executed and
delivered to NOVA the Non-Competition Agreement.

     10.4 MARKETING AGREEMENT. The Bank and Parent shall have executed the
Marketing Agreement.

     10.5 BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT. The Bank shall
have executed and delivered to NOVA the Bill of Sale and Assignment and
Assumption Agreement.

     10.6 CREDIT CARD ASSOCIATIONS. All filings required pursuant to Section 8.1
shall have been made, and all approvals required pursuant to Section 8.1 shall
have been received, and neither the Bank nor NOVA shall have received any
objection of any kind from a Credit Card Association either in response to the
filings required under Section 8.1 or otherwise.

                                       18

<PAGE>

     10.7 SECRETARY'S CERTIFICATES.

          (a) The Bank shall have delivered to NOVA a duly executed certificate
     of the Secretary of the Bank (i) attaching a certified copy of the articles
     of incorporation of, and a certificate of existence for, the Bank as issued
     by the Secretary of State of the State of Oregon, (ii) attaching a
     certified copy of the bylaws of the Bank currently in effect, and (iii)
     attaching and certifying copies of duly adopted resolutions of the Bank's
     board of directors authorizing the Bank's execution, delivery and
     performance of this Agreement and the other documents, instruments and
     certifications required or contemplated hereby.

          (b) Parent shall have delivered to NOVA a duly executed certificate of
     the Secretary of Parent (i) attaching a certified copy of the articles of
     incorporation of, and a certificate of existence for, Parent as issued by
     the Secretary of State of the State of Oregon, (ii) attaching a certified
     copy of the bylaws of Parent currently in effect, and (iii) attaching and
     certifying copies of duly adopted resolutions of Parent's board of
     directors authorizing Parent's execution, delivery and performance of this
     Agreement and the other documents, instruments and certifications required
     or contemplated hereby.

     10.8 WAIVER. The Bank shall have delivered to NOVA the Waiver, duly
executed by each of the Bank, Humboldt Merchant Services, LP and First National
Bank of Arizona.

     10.9 DOCUMENTS SATISFACTORY IN FORM AND SUBSTANCE. All agreements,
certificates, opinions and other documents delivered by the Bank and Parent to
NOVA hereunder shall be in form and substance satisfactory to counsel of NOVA,
in the exercise of such counsel's reasonable judgment.

                                   ARTICLE XI

                                INDEMNIFICATION

     11.1 INDEMNIFICATION BY THE BANK AND PARENT. The Bank and Parent shall
jointly and severally indemnify and hold harmless NOVA, its affiliates, their
respective successors and assigns, and their respective directors, officers,
employees, consultants and agents (each a "NOVA Protected Party") from any
liability, loss, damage, diminution in value, cost, claim, consequential
damages, suit, action or expense, including reasonable attorneys' and
accountants' fees and expenses (collectively, "NOVA Loss"), incurred by a NOVA
Protected Party that results from or arises out of (i) any breach or inaccuracy
of any representation or warranty of the Bank or Parent set forth in the
Operative Documents, whether such breach or inaccuracy exists or is made as of
the Closing Date or the Effective Date; (ii) the breach by the Bank or Parent of
any of their covenants or agreements contained in the Operative Documents; (iii)
any liability or obligation, contingent or otherwise, of the Bank or Parent, or
otherwise arising from or relating to the Bank's Merchant Business, exclusive of
the Assumed Liabilities; and (iv) violations of law or governmental rules or
regulations or wrongdoing or negligence by the Bank or Parent in performing
obligations in connection with this Agreement.

     11.2 INDEMNIFICATION BY NOVA. NOVA shall indemnify and hold harmless the
Bank and Parent, their affiliates and their respective directors, officers,
employees, consultants and

                                       19

<PAGE>

agents (each a "Bank Protected Party") from any liability, loss, damage,
diminution in value, cost, claim, consequential damages, suit, action or
expense, including reasonable attorneys' and accountants' fees and expenses
(collectively, "Bank Loss"), incurred by a Bank Protected Party that results
from or arises out of (i) any breach or inaccuracy of any representation or
warranty of NOVA set forth in the Operative Documents, whether such breach or
inaccuracy exists or is made as of the Closing Date or the Effective Date; (ii)
the breach by NOVA of any of its covenants or agreements contained in the
Operative Documents; (iii) any Assumed Liability; or (iv) violations of law or
governmental rules or regulations or wrongdoing or negligence by NOVA in
performing obligations in connection with this Agreement.

     11.3 SPECIAL INDEMNIFICATION. Without limiting the provisions of Section
11.1 hereof, and notwithstanding anything in this Agreement or any other
Operative Document to the contrary, the Bank and Parent shall jointly and
severally indemnify and hold harmless NOVA and the NOVA Protected Parties from
any NOVA Loss incurred by a NOVA Protected Party that results from or arises out
of the application of any provision of the Humboldt Agreements that in any way
restricts, impedes or prevents, or is breached or violated by, the Bank's and
Parent's execution and delivery of this Agreement and the other Operative
Documents to which each is a party, the performance of their obligations
hereunder and thereunder, and the consummation of the transactions contemplated
hereby and thereby.

     11.4 LOSS OR ASSERTED LIABILITY. Promptly after (a) becoming aware of
circumstances that have resulted in a NOVA Loss or a Bank Loss or potential NOVA
Loss or Bank Loss, whichever is applicable ("Loss" or "Losses"), for which any
party hereto (the "Indemnitee") intends to seek indemnification under Section
11.1, 11.2 or 11.3, or (b) receipt by the Indemnitee of written notice of any
demand, claim or circumstances which, with or without the lapse of time, the
giving of notice or both, would give rise to a claim or the commencement (or
threatened commencement) of any action, proceeding or investigation (an
"Asserted Liability") that may result in a Loss, the Indemnitee shall give
written notice thereof (the "Claims Notice") to the other party obligated to
provide indemnification pursuant to Section 11.1, 11.2 or 11.3 (the
"Indemnifying Party"). The Claims Notice shall describe the Loss or the Asserted
Liability in reasonable detail and shall indicate the amount (estimated, if
necessary) of the Loss that has been or may be suffered by the Indemnitee. The
Claims Notice may be amended on one or more occasions with respect to the amount
of the Asserted Liability or the Loss at any time prior to final resolution of
the obligation relating to the Asserted Liability or the Loss. Failure of the
Indemnitee to give promptly the notice required by this Section 11.4 shall not
relieve the Indemnifying Party of its obligations to indemnify under this
Article XI.

     11.5 OPPORTUNITY TO CONTEST. The Indemnifying Party may elect to compromise
or contest, at its own expense and by its own counsel, any Asserted Liability.
If the Indemnifying Party elects to compromise or contest such Asserted
Liability, it shall within thirty (30) days (or sooner, if the nature of the
Asserted Liability so requires) of the date of the Indemnifying Party's receipt
of the Claims Notice notify the Indemnitee or Indemnitees of its intent to do so
by giving written notice thereof to the Indemnitee (the "Contest Notice"), and
the Indemnitee shall cooperate, at the expense of the Indemnifying Party, in the
compromise or contest of such Asserted Liability. If the Indemnifying Party
elects not to compromise or contest the Asserted Liability, fails to notify the
Indemnitee of its election as herein provided or contests its obligation to
indemnify under this Agreement, the Indemnitee (upon further notice to the
Indemnifying

                                       20

<PAGE>

Party) shall have the right to pay, compromise or contest such Asserted
Liability on behalf of and for the account and risk of the Indemnifying Party,
subject to the right of the Indemnifying Party to assume the compromise or
contest of such Asserted Liability at any time before final settlement or
determination thereof. Anything in this Article XI to the contrary
notwithstanding, (i) the Indemnitee shall have the right, at its own cost and
expense and for its own account, to compromise or contest any Asserted
Liability, and (ii) the Indemnifying Party shall not, without the Indemnitees'
written consent, settle or compromise any Asserted Liability or consent to entry
of any judgment which does not include an unconditional release of the
Indemnitee from all liability in respect of such Asserted Liability. In any
event, the Indemnitee and the Indemnifying Party may participate, at their own
expense, in the contest of such Asserted Liability. If the Indemnifying Party
chooses to contest any Asserted Liability, the Indemnitee shall make available
to the Indemnifying Party any books, records or other documents within its
control that are necessary or appropriate for, shall make its officers and
employees available, on a basis reasonably consistent with their other duties,
in connection with, and shall otherwise cooperate with, such defense.

     11.6 INDEMNITY CLAIMS.

          (a) The representations and warranties contained herein, in any other
     Operative Document, or in any certificate or other document delivered
     pursuant hereto or in connection herewith shall not be extinguished by the
     Closing but shall survive the Closing, subject to the limitations set forth
     in Section 11.6(b) hereof with respect to the time periods within which
     claims for indemnity must be asserted, and the covenants and agreements of
     the Bank and NOVA contained herein shall survive without limitation as to
     time except as may be otherwise specified herein. No investigation or other
     examination of the Bank or the Merchant Business by NOVA, or its designees
     or representatives, shall affect the term of survival of any representation
     or warranty contained herein, in any other Operative Document, or in any
     certificate or other document delivered pursuant hereto or in connection
     herewith, or the term of the right of the NOVA Protected Parties or the
     Bank Protected Parties to seek indemnification as set forth in Section
     11.6(b).

          (b) All claims for indemnification hereunder shall be asserted no
     later than three (3) years after the Closing Date, except as follows:

               (i) claims with respect to Losses arising out of or related in
          any way to the matters described in Sections 11.1(ii), (iii) and (iv),
          and 11.2(ii), (iii) and (iv) may be made without limitation, except as
          limited by law;

               (ii) claims with respect to Losses arising out of or related in
          any way to claims made by third parties (including federal, state or
          local authorities or private parties) against any of the NOVA
          Protected Parties or the Bank Protected Parties with respect to any of
          the matters described in Section 11.1 hereof may be asserted until,
          and shall be asserted no later than, thirty (30) days after the
          expiration of the applicable statute of limitations with respect
          thereto; and

                                       21

<PAGE>

               (iii) claims with respect to Losses arising out of or in any way
          related to the matters described in Section 11.3 may be asserted at
          any time during which the Marketing Agreement or Non-Competition
          Agreement remains in effect.

          (c) Nothing herein shall be deemed to prevent any party hereto from
     making a claim for a Loss hereunder for potential or contingent claims or
     demands provided the notice of Loss sets forth the specific basis for any
     such potential or contingent claim or demand to the extent then feasible
     and the Indemnitee has reasonable grounds to believe that such a claim or
     demand may become actual.

                                  ARTICLE XII

                     DEFINITIONS AND RULES OF INTERPRETATION

     12.1 DEFINITIONS. For purposes of this Agreement, the capitalized terms
have the following respective meanings:

     "AGREEMENT" means this Agreement, including all schedules and exhibits
hereto, and, if amended, modified or supplemented, as the same may be so
amended, modified or supplemented from time to time.

     "AGENT BANK" means a financial institution sponsored by the Bank and for
which services related to the Merchant Business are provided to such financial
institution and/or its merchants by or on behalf of the Bank.

     "AGENT BANK AGREEMENT" means an agreement between the Bank and an Agent
Bank pursuant to which the Agent Bank and the Bank provide services related to
the Merchant Business.

     "ASSUMED LIABILITIES" means the following liabilities or obligations: (a)
the obligations of the Bank arising on or after the Effective Date to perform
under the Merchant Agreements assigned to NOVA pursuant to this Agreement; (b)
the obligations of the Bank to pay assessments, interchange fees, transaction
fees, fines, penalties or other fees or charges to the Credit Card Associations
or EFT Networks, provided such obligations relate to transactions which occur
both (i) under the Merchant Agreements; and (ii) on or after the Effective Date;
(c) chargebacks in respect of any Credit Card transaction processed by NOVA
pursuant to a Merchant Agreement if such Credit Card transaction is received by
electronic transmission or otherwise under and in compliance with the rules and
regulations of Credit Card Associations on and after the Effective Date and
other Credit Losses on and after the Effective Date, but only to the extent that
such chargeback or other Credit Loss relates to or arises out of an original
sales transaction occurring on or after the Effective Date; and (d) any other
claims, liabilities or litigation in respect of the Merchant Agreements, the
Equipment, and the business conducted in connection with the foregoing, provided
that any such claims, liabilities or litigation relates to or arises out of
events, transactions or actions or omissions of NOVA on or after the Effective
Date. The Assumed Liabilities assumed by NOVA hereunder shall be limited to the
liabilities and obligations specified in the immediately preceding sentence and,
without limitation of the

                                       22

<PAGE>

foregoing, shall not in any event include penalties or fees that may be incurred
by the Bank in connection with the termination of the Bank's agreement(s) with
any third party service providers (including without limitation Western States
Bankcard Association), losses as the result of a chargeback or Credit Loss in
respect of any Merchant Agreement that result from transactions, or events, or
acts or omissions of the Bank or a merchant which occurred prior to the
Effective Date. The Assumed Liabilities assumed by NOVA hereunder with respect
to the Merchant Agreements shall be limited further to those contained within
the Standard Merchant Agreements.

     "BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT" means the Bill of
Sale and Assignment and Assumption Agreement between the Bank and NOVA in the
form of Exhibit 1.2 attached hereto, and if amended, modified or supplemented,
as the same may be so amended, modified or supplemented from time to time.

     "CREDIT CARD" means (i) a VISA card or other card bearing the symbol(s) of
VISA U.S.A., Inc. or VISA International, Inc., or (ii) a MasterCard card or
other card bearing the symbol(s) of MasterCard International Incorporated.

     "CREDIT CARD ASSOCIATIONS" means VISA U.S.A., Inc., VISA International,
Inc., MasterCard International Incorporated and any successor organizations or
associations.

     "CREDIT LOSS" means any loss resulting from the failure of a Merchant to
pay amounts owed by it under a Merchant Agreement.

     "DEBIT CARD" means a card with a magnetic stripe bearing the symbol(s) of
one or more EFT Networks or Credit Card Associations which enables the holder to
pay for goods or services by authorizing an electronic debit to the cardholder's
designated deposit account.

     "EFT NETWORKS" means the electronic funds transfer networks identified on
Schedule 6.9 attached hereto.

     "EQUIPMENT" means the point-of-sale terminals, printers and other
equipment, supplies, or point-of-sale assets utilized by Merchants, or held for
lease, sale or swap to Merchants, and owned or leased by the Bank, and computer
equipment and software, office equipment and furniture, and all other equipment
used or useful in the Merchant Business as set forth on Schedule 6.5(a) attached
hereto.

     "EXCLUDED ASSETS" means the assets specified on Schedule 1.1 attached
hereto and shall also include, whether or not listed on Schedule 1.1, all rights
and obligations of the Bank under any third party contract to which the Bank is
a party that is not included in the Assets Sold.

     "HUMBOLDT AGREEMENTS" means that certain Asset Purchase Agreement dated
February 3, 2003 by and among the Bank (as successor-in-interest to Humboldt
Bank), First National Bank of Arizona, and Humboldt Merchant Services, LP,
together with all agreements and documents referenced therein and contemplated
thereby.

     "INVENTORY" means the imprinters, sales draft forms, application forms,
decals and all other merchant supplies of the Bank, as set forth on Schedule
6.5(b), attached hereto.

                                       23

<PAGE>

     "ISO" means an independent sales organization or other person or entity
which is a party to an agreement or understanding with the Bank as of the
Closing Date whereby the independent sales organization or other person or
entity provides marketing and other services to merchants in connection with the
Merchant Business.

     "ISO AGREEMENT" means an agreement between the Bank and an ISO pursuant to
which the ISO is providing marketing and other services in connection with the
Merchant Business.

     "KNOWLEDGE" means, with respect to the Bank, the actual knowledge after due
and reasonable inquiry of the Bank's executive and senior operational officers
and directors.

     "MARKETING AGREEMENT" means the Marketing and Sales Alliance Agreement
among Parent, the Bank and NOVA in the form of Exhibit 10.4 attached hereto, and
if amended, modified or supplemented, as the same may be so amended, modified or
supplemented from time to time.

     "MERCHANT" means any person or entity (other than NOVA or the Bank) (a) who
has entered into a Merchant Agreement prior to the Effective Date, or (b) that
is identified on Schedule 6.7(a)(iii).

     "MERCHANT AGREEMENT" means an agreement between the Bank and a Merchant
pursuant to which the Merchant undertakes to honor Credit Cards and/or Debit
Cards and the Bank agree to accept Credit Card and/or Debit Card transaction
records; provided, however, that in no event shall "Merchant Agreement" include
any merchant agreement included on Schedule 1.1 as an "Excluded Asset."

     "MERCHANT BUSINESS" means the providing of point of sale based Credit Card,
Debit Card and other card-based transaction processing services and electronic
payment and settlement services (including the sale or lease of products and
services related thereto) relating to the Assets Sold and the Assumed
Liabilities to Merchants and other similar customers, but shall specifically
exclude any such activity relating to the Excluded Assets.

     "MERCHANT BUSINESS EMPLOYEES" means the employees of the Bank who work
full-time in connection with the Merchant Business.

     "NON-COMPETITION AGREEMENT" means the Non-Competition Agreement among
Parent, the Bank and NOVA in the form of Exhibit 10.3 attached hereto, and if
amended, modified or supplemented, as the same may be so amended, modified or
supplemented from time to time.

     "OPERATIVE DOCUMENTS" means this Agreement, the Marketing Agreement, the
Bill of Sale and Assignment and Assumption Agreement, the Non-Competition
Agreement, the Waiver and all such other documents, agreements, certificates or
instruments executed and delivered in connection herewith.

     "RESERVE ACCOUNT" means any reserve or hold account established and
maintained by Merchants and maintained with the Bank in connection with the
Merchant Agreements or the Merchant Business.

                                       24

<PAGE>

     "STANDARD MERCHANT AGREEMENTS" means the forms of Merchant Agreements
attached hereto as Exhibit 6.7(b)(i).

     "TRANSITION DATE" means August 1, 2005, or any date thereafter if said
Transition Date is extended pursuant to Section 3.6.

     "TRANSITION PERIOD" means the period from the Effective Date through and
including the Transition Date.

     "WAIVER" means that certain Waiver among the Bank, Humboldt Merchant
Services, LP and First National Bank of Arizona, in the form of Exhibit 10.8
attached hereto.

     12.2 OTHER DEFINITIONS; RULES OF INTERPRETATION.

          (a) All terms defined herein shall have the defined meanings when used
     in any Operative Document, certificate or other document made or delivered
     pursuant hereto unless otherwise defined therein. Singular terms shall
     include the plural, and vice versa, unless the context otherwise requires.

          (b) Exhibits and Schedules referenced in this Agreement are deemed to
     be incorporated herein by reference. The term "including" shall mean
     "including without limitation."

                                  ARTICLE XIII

                                  MISCELLANEOUS

     13.1 EXPENSES. Except as otherwise specifically provided in this Agreement,
each party shall pay its own costs and expenses in connection with this
Agreement and the transactions contemplated hereby, including all attorneys'
fees, accounting fees and other expenses.

     13.2 NOTICES AND PAYMENTS. All notices, demands and other communications
hereunder shall be in writing and shall be delivered (i) in person, (ii) by
United States mail, certified or registered, with return receipt requested, or
(iii) by national overnight courier (e.g., FedEx) as follows:

          If to the Bank or Parent: Umpqua Holdings Corporation
                                    200 S.W. Market St., Suite 1900
                                    Portland, Oregon 97201
                                    Attention: Daniel A. Sullivan
                                               Executive Vice President,
                                               Chief Financial Officer

                                       25

<PAGE>

          with a copy to:           Umpqua Bank Legal Department
          (which shall not          P.O. Box 1560
          constitute notice)        Eugene, Oregon 97440
                                    Attention: Steven L. Philpott, Esq.
                                               Executive Vice President,
                                               General Counsel

          If to NOVA:               NOVA Information Systems, Inc.
                                    One Concourse Parkway, Suite 300
                                    Atlanta, Georgia 30328
                                    Attention: Cherie M. Fuzzell, Esq.
                                               Executive Vice President and
                                               General Counsel

          with a copy to:           NOVA Information Systems, Inc.
          (which shall not          One Concourse Parkway, Suite 300
          constitute notice)        Atlanta, Georgia 30328
                                    Attention: Edward M. O'Hare
                                               Senior Vice President

          with a copy to:           McKenna Long & Aldridge LLP
          (which shall not          SunTrust Plaza, Suite 5300
          constitute notice)        303 Peachtree Street, N.E.
                                    Atlanta, Georgia 30308
                                    Attention: Marc C. D'Annunzio, Esq.

The persons or addresses to which mailings or deliveries shall be made may be
changed from time to time by notice given pursuant to the provisions of this
Section 13.2. Any notice, demand or other communication given pursuant to the
provisions of this Section 13.2 shall be deemed to have been given on the date
actually delivered.

     13.3 THIRD-PARTY BENEFICIARIES. No party to this Agreement intends this
Agreement to benefit or create any right or cause of action in or on behalf of
any person other than the Bank, Parent and NOVA.

     13.4 INDEPENDENT CONTRACTORS. Nothing contained in this Agreement or any
other Operative Document shall be construed as creating or constituting a
partnership, joint venture or agency among the parties to this Agreement.
Rather, the parties shall be deemed independent contractors with respect to each
other for all purposes.

     13.5 SUCCESSORS AND ASSIGNS. All terms and provisions of this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. This Agreement and the
rights, privileges, duties and obligations of the parties hereto may not be
assigned or delegated by any party without the prior written consent of the
other party; provided, however, that such consent shall not be required (a) for
the assignment by any party of its rights and privileges hereunder to a person
or entity controlling, controlled by or under common control with such party (it
being understood that no such assignment shall

                                       26

<PAGE>

relieve the assigning party of its duties or obligations hereunder), or (b) for
the assignment and delegation by any party of its rights, privileges, duties and
obligations hereunder to any person into or with which the assigning party shall
merge or consolidate or to which the assigning party shall sell all or
substantially all of its assets, provided that upon the request of the
non-assigning party the assignee shall formally agree in writing to assume all
the rights and obligations of the assigning party created hereby.

     13.6 AMENDMENTS AND WAIVERS. This Agreement, any of the instruments
referred to herein and any of the provisions hereof or thereof shall not be
amended, modified or waived in any fashion except by an instrument in writing
signed by the parties hereto. The waiver by a party of any breach of this
Agreement by another party shall not operate or be construed as the waiver of
the same or another breach on a subsequent occasion, nor shall any delay in
exercising any right, power or privilege hereunder constitute a waiver thereof.

     13.7 SEVERABILITY OF PROVISIONS. If any provision of this Agreement, or the
application of any such provision to any person or circumstance, is invalid or
unenforceable, the remainder of this Agreement, or the application of such
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected by such invalidity or unenforceability.

     13.8 COUNTERPARTS; DELIVERY. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one instrument.
The parties acknowledge that delivery of executed counterparts of this Agreement
may be effected by a facsimile transmission or other comparable means, with an
original document to be delivered promptly thereafter via overnight courier.

     13.9 GOVERNING LAW. This Agreement is made and entered into under the laws
of the State of Georgia, and the laws of that State (without giving effect to
the principles of conflicts of laws thereof) shall govern the validity and
interpretation hereof and the performance by the parties hereto of their
respective duties and obligations hereunder.

     13.10 SECTION HEADINGS. The headings of Sections contained in this
Agreement are for convenience of reference only and do not form a part of this
Agreement.

     13.11 ENTIRE AGREEMENT. The making, execution and delivery of this
Agreement by the parties hereto have been induced by no representations,
statements, warranties or agreements other than those herein expressed. This
Agreement and the other written instruments specifically referred to herein
embody the entire understanding of the parties and supersede in their entirety
all prior communication, correspondence, and instruments among the parties with
respect to the subject matter hereof, including the Letter of Intent, dated
December 2, 2004, and there are no further or other agreements or
understandings, written or oral, in effect between the parties relating to the
subject matter hereof.

     13.12 PUBLICITY. The timing and content of any and all public statements,
announcements or other publicity concerning the transactions contemplated herein
shall be mutually agreed upon by Parent and NOVA, which agreement shall not be
unreasonably withheld.

                                       27

<PAGE>

     13.13 SURVIVAL. The representations, warranties, covenants and agreements
made by the parties in this Agreement shall survive the Closing. Each party,
acknowledging that the other is entitled to rely on its representations,
warranties, covenants and agreements in this Agreement in order to preserve the
benefit of the bargain otherwise represented by this Agreement, agrees that
neither the survival of such representations, warranties, covenants and
agreements, nor their enforceability nor any remedies for breaches of them will
be affected by any knowledge of a party regardless of when or how such party
acquired such knowledge, specifically including disclosures of facts and/or
circumstances after the date of this Agreement.

                      (Signatures begin on following page)

                                       28

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Merchant Asset Purchase Agreement as of the date first written above.

                                        "BANK":

                                        UMPQUA BANK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "PARENT":

                                        UMPQUA HOLDINGS CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "NOVA":

                                        NOVA INFORMATION SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       29

<PAGE>

                         INDEX OF SCHEDULES AND EXHIBITS

<TABLE>
<CAPTION>
SCHEDULES     DESCRIPTION
---------     -----------
<S>           <C>
1.1           Excluded Assets
3.2(a)        BIN Reconciliation Procedures
3.2(d)        Reimbursement of Transition Expenses
6.5(a)        Equipment
6.5(b)        Inventory
6.6(a)        Financial Information
6.6(b)        Annualized Credit Card Sales Volume and Debit Card Sales Volume
6.7(a)(i)     Merchants
6.7(a)(ii)    Notice of Election to Terminate Merchant Agreements and
              Exceptions to Credit Card Processing Activity
6.7(a)(iii)   Merchants Not Party to Merchant Agreement
6.7(b)        Exceptions to Possession of Original Executed Copy of Merchant
              Agreements
6.7(c)        Exceptions to Merchant Guarantees
6.7(d)        Other Agreements
6.7(h)        American Express, Discover, Diner's Club, JCB
6.8           Top 50 Merchants
6.9           EFT Networks
6.10          Consents and Approvals
6.11          Leases
6.17(c)       Exceptions to No Agreements Restricting Competition
6.18          Exceptions to Agreements in Full Force and Effect
6.19          Vendors and Suppliers
</TABLE>

<TABLE>
<CAPTION>
EXHIBITS      DESCRIPTION
--------      -----------
<S>           <C>
1.2           Bill of Sale and Assignment and Assumption Agreement
6.7(b)(i)     Standard Merchant Agreement
6.7(c)        Standard Guarantee
10.3          Non-Competition Agreement
10.4          Marketing Agreement
10.8          Waiver
</TABLE>

                                       30

<PAGE>

                     MARKETING AND SALES ALLIANCE AGREEMENT

     THIS MARKETING AND SALES ALLIANCE AGREEMENT (this "Agreement") is made and
entered into as of this 21st day of December, 2004 by and among UMPQUA BANK, an
Oregon state-chartered bank (the "Bank"), UMPQUA HOLDINGS CORPORATION, an Oregon
corporation and the sole shareholder of the Bank ("Parent"), and NOVA
INFORMATION SYSTEMS, INC., a Georgia corporation ("NOVA").

                             BACKGROUND AND PURPOSE

     A. The Bank has sold to NOVA all of the Bank's merchant transaction
processing assets pursuant to that certain Merchant Asset Purchase Agreement
dated as of even date herewith by and among the Bank, Parent and NOVA (the
"Purchase Agreement").

     B. Parent, the Bank and NOVA now desire to enter into, in connection with
the Purchase Agreement, a mutually beneficial marketing relationship, as set
forth herein.

                                  THE AGREEMENT

     NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained, and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby agree
as follows:

                                    ARTICLE I

                                   DEFINITIONS

     1.1 CERTAIN DEFINED TERMS. For purposes of this Agreement, the following
capitalized terms shall have the following meanings:

     "AUXILIARY DOCUMENTS" has the meaning set forth in Section 2.1(a) hereof.

     "CASH ADVANCES" has the meaning set forth in Section 4.1 hereof.

     "CHANGE OF CONTROL" means, with respect to any person or entity (for
purposes of this definition, the "Relevant Party"), any transaction or series of
transactions in which:

     (a) any person acquires or controls, whether directly or indirectly, shares
or securities that confer in aggregate more than 50% of the voting rights in the
Relevant Party; or

     (b) any two or more persons actively cooperate in doing, or in procuring
the doing, of any act, with the result that one or more of them acquires or
controls, whether directly or indirectly, shares or securities that confer in
aggregate more than 50% of the voting rights in the Relevant Party.

<PAGE>

Notwithstanding the foregoing provisions of this definition, a "Change in
Control" shall in no event be deemed to have occurred (x) with respect to any
Relevant Party, when any transaction contemplated by this definition is
consummated by the Relevant Party with a person or entity that, immediately
prior to the consummation of such transaction and at all times thereafter,
directly or indirectly, is an affiliate of the Relevant Party, (y) with respect
to NOVA, in the event of an underwritten public offering of shares of the
capital stock of NOVA or other similar "spin-off" transaction, or (z) with
respect to NOVA, in the event of the conclusion of a marketing or referral
agency alliance, joint venture or other similar relationship with another entity
or financial institution that is entered into for the purposes of marketing,
referring or developing Merchant Services.

     "CONFIDENTIAL INFORMATION" has the meaning set forth in Section 2.8 hereof.

     "CREDIT CARD" means (i) a VISA card or other card bearing the symbol(s) of
VISA U.S.A., Inc. or VISA International, Inc., or (ii) a MasterCard card or
other card bearing the symbol(s) of MasterCard International Incorporated, or
(iii) any card bearing the symbols of any other Credit Card Association.

     "CREDIT CARD ASSOCIATIONS" means (i) VISA U.S.A., Inc., (ii) VISA
International, Inc., (iii) MasterCard International Incorporated, or (iv) any
other Credit Card-sponsoring organization or association that hereafter
contracts with the Bank to settle Merchant sales transactions effected with its
Credit Cards, and any successor organization or association to any of the
foregoing.

     "CREDIT LOSS" means any loss relating to the failure of a Merchant or
Referred Merchant to pay amounts owed by it under a Merchant Agreement or
Referred Merchant Agreement.

     "DEBIT CARD" means a card with a magnetic stripe bearing the symbol(s) of
one or more EFT Networks or Credit Card Associations which enables the holder to
pay for goods or services by authorizing an electronic debit to the cardholder's
designated deposit account.

     "DUES AND ASSESSMENTS" mean fees charged to NOVA by the Payment Networks
and retained by the Payment Networks to fund their operations. The fee consists
of a percentage of the total sales transaction as set by each Payment Network.

     "EFT NETWORK" means the electronic funds transfer networks identified on
Schedule 6.9 to the Purchase Agreement, as modified by the addition or deletion
of networks from time to time.

     "FINANCIAL TRANSACTION DEVICE" or "FTD" means any Credit Card, Debit Card
and any other financial transaction device, such as a stored value card,
electronic card, "smart" card, electronic check or other evolutionary financial
transaction device used for the purpose of obtaining credit or debiting consumer
accounts, that is now or hereafter effected through transactions with merchants.

     "INITIAL TERM" has the meaning set forth in Section 6.1 hereof.

                                        2

<PAGE>

     "INTERCHANGE" means the fee charged by the Payment Networks to NOVA and
remitted by the Payment Networks to the card-issuing members. The fee typically
consists of a percentage of the total sales transaction plus a per item fee,
each as set by each Payment Network. The fee can vary based on the type of
merchant, method of authorization and other criteria stipulated by each Payment
Network.

     "INVOLUNTARY BANKRUPTCY PROCEEDING" with respect to a person means that a
case or other proceeding shall be commenced against the person or any subsidiary
of such person in any court of competent jurisdiction, or through any regulatory
agency or body, seeking (i) relief under the Bankruptcy Code of 1978, as
amended, or other federal bankruptcy laws (as now or hereafter in effect) or
under any other applicable laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding up, or composition or adjustment of debts,
or (ii) the appointment of a trustee, receiver, custodian, liquidator or the
like of such person, or of all or any substantial part of the assets, domestic
or foreign, of such person, or any other similar conservatorship or receivership
proceeding instituted or administered by any regulatory agency or body.

     "LICENSED MARKS" has the meaning set forth in Section 2.5 hereof.

     "MEMBER" means a financial institution that is a principal, sponsoring,
affiliate, or other member of the Payment Networks and, with respect to any
Merchant or Referred Merchant, means the member of the Payment Networks that is
a party to the Merchant Agreement with respect to such Merchant or Referred
Merchant.

     "MERCHANT AGREEMENT" means an agreement between (i) NOVA and/or the Bank
(and a Member), and (ii) a merchant, pursuant to which the merchant undertakes
to honor Financial Transaction Devices, and includes, without limitation, all
merchant agreements sold, assigned, conveyed and transferred to NOVA by the Bank
pursuant to the Purchase Agreement.

     "MERCHANT DISCOUNT" means the fee charged to Referred Merchants by NOVA for
the authorization, processing and settlement of Credit Card and Debit Card
transactions. The fee typically consists of a percentage of the total sales
transaction volume of a Referred Merchant, as such percentage is agreed by NOVA
and the Referred Merchant, plus a per item fee. The fee can vary based on the
type of Referred Merchant, method of authorization and other criteria stipulated
by NOVA.

     "MERCHANT SERVICES" means FTD processing services and other related
products and services, as provided by (or similar to the services provided by)
NOVA and its subsidiaries and affiliates.

     "NET SALES REVENUE" means, with respect to any Referred Merchant and with
respect to any given period of time, the Merchant Discount plus Other Fee
Revenue attributable to sales transactions by such Referred Merchant in which a
customer utilizes a Credit Card or Debit Card, less Interchange, Dues and
Assessments, Credit Losses and rebates, residuals or adjustments due to third
parties that are attributable to such Referred Merchant; provided, in no event
will Net Sales Revenue be deemed to include revenue attributable to Equipment.

     "NEW MERCHANT ACCOUNT ROYALTY" has the meaning set forth in Section 2.3(a)
hereof.

                                        3

<PAGE>

     "OTHER FEE REVENUE" means revenue from the following fees to be included in
the calculation of Net Sales Revenue: (i) monthly statement fee; (ii) monthly
minimum fee; (iii) authorization fees (including American Express, Diners,
Discover and JCB); (iv) debit transaction fees; (v) application fees; and (vi)
chargeback fees; provided, in no event will Other Fee Revenue be deemed to
include revenue attributable to Equipment.

     "PARENT ENTITY" or "PARENT ENTITIES" means, collectively, each of Parent
and the Bank, and each of their respective affiliates and subsidiaries.

     "PAYMENT NETWORK" means any Credit Card Association, EFT Network or any
other organization or association that issues or sponsors a Financial
Transaction Device.

     "PAYMENT NETWORK REGULATIONS" means, collectively, the rules and
regulations promulgated by the Credit Card Associations, the EFT Networks or any
other Payment Networks, as applicable.

     "REFERRED MERCHANT" means a merchant referred to NOVA by the Bank pursuant
to, and during the term of this Agreement (including any extensions and renewals
hereof) that, as a result of such referral, enters into a Merchant Agreement
with NOVA and the Member.

     "SALE OF ASSETS" means, with respect to any particular party, the sale of
all or substantially all of the assets of such party to an unaffiliated third
party purchaser; provided, however, that with respect to NOVA, the foregoing
definition shall not include a Change in Control of NOVA, U.S. Bancorp or U.S.
Bank National Association or an underwritten public offering of shares of the
capital stock of NOVA or other similar "spin-off" transaction.

     "UNDERWRITING GUIDELINES" has the meaning set forth in Section 2.1(b)
hereof.

     "VOLUNTARY BANKRUPTCY PROCEEDING" with respect to a person means that the
person or any subsidiary of such person shall (i) commence a voluntary case
under the Bankruptcy Code of 1978, as amended, or other federal bankruptcy laws
(as now or hereafter in effect), (ii) file a petition seeking to take advantage
of any other applicable laws, domestic or foreign, relating to bankruptcy,
insolvency, reorganization, winding up, or composition or adjustment of debts,
or any other similar conservatorship or receivership proceeding instituted or
administered by any regulatory agency or body, (iii) consent to or fail to
contest, in a timely and appropriate manner, any petition filed against it in an
involuntary case under such bankruptcy laws or other applicable laws or consent
to an Involuntary Bankruptcy Proceeding, (iv) apply for or consent to, or fail
to contest in a timely and appropriate manner, the appointment of, or the taking
of possession by, a trustee, receiver, custodian, liquidator or similar entity
of such person or of all or any substantial part of its assets, domestic or
foreign, (v) admit in writing its inability to pay its debts as they become due,
(vi) make a general assignment for the benefit of creditors, (vii) make a
conveyance fraudulent as to creditors under any applicable law, or (viii) take
any corporate action for the purpose of effecting any of the foregoing.

     1.2 OTHER DEFINITIONAL PROVISIONS. Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to such terms in the
Purchase Agreement. Singular terms shall include the plural, and vice versa,
unless the context otherwise requires. The words "hereof," "herein" and
"hereunder" and words of similar import when used in this

                                        4

<PAGE>

Agreement shall refer to this Agreement and not to any particular provision of
this Agreement, and Section and Schedule references are to this Agreement,
unless otherwise specified. The term "including" shall mean "including without
limitation."

                                   ARTICLE II

                   MARKETING RELATIONSHIP; MERCHANT REFERRALS

     2.1 MARKETING; REFERRAL OF MERCHANTS TO NOVA.

          (a) The Bank will actively, and through the use of all commercially
     reasonable efforts, cooperate with NOVA, exclusively, in marketing NOVA's
     Merchant Services to merchants and prospective merchants (including the
     customers of the Bank). Such marketing services and assistance shall
     include, without limitation, the distribution by the Bank of promotional
     and informational materials and supplies relating to the Merchant Services
     conducted by NOVA and such other services and assistance as may reasonably
     be requested by NOVA, at NOVA's expense. The Bank shall have the
     opportunity to review and approve in advance (such approval not to be
     unreasonably withheld) all merchant applications and merchant agreements to
     be used in connection with the Merchant Services, including supplies for
     cash advances to be effected by the Bank. The Bank covenants and agrees
     that it will only use and provide to merchants the applications and
     merchant agreements, and advertising, marketing, promotional and other
     related materials (collectively, "Auxiliary Documents"), supplied by or at
     the direction of, or approved in writing in advance, by NOVA. From time to
     time at the reasonable request of NOVA, the Bank will provide enhanced
     promotional services or opportunities to or on behalf of NOVA such as the
     provision of sales or marketing personnel or employee incentives. Further,
     the Bank shall provide to NOVA such office space at the Bank's locations as
     reasonably requested by NOVA, and as agreed by the Bank.

          (b) The Bank agrees to refer exclusively to NOVA any merchants,
     financial institutions, independent sales organizations, or other
     associations, institutions, organizations, entities, or persons that
     inquire about, request, or otherwise evidence an interest, to the Bank's
     knowledge, in Merchant Services. All such referrals shall be communicated
     to NOVA by the Bank in a manner to be mutually agreed upon by the parties
     hereto. Upon any such merchant referral, NOVA shall process such referral
     and corresponding merchant application in accordance with its practices and
     procedures, and otherwise in accordance with the credit policy, risk and
     underwriting guidelines then in effect for each of NOVA and the Member
     (collectively, the "Underwriting Guidelines"). If the referred merchant
     meets the Underwriting Guidelines, or if NOVA otherwise desires, then NOVA
     may attempt, in its sole discretion, to enter into a Merchant Agreement,
     and arrange for the Member designated by NOVA to enter into a Merchant
     Agreement, with such merchant providing for the performance of such
     Merchant Services by NOVA.

          (c) For the purposes of this Section 2.1, the defined term "Bank"
     shall include the Bank and any other Parent Entities that now or in the
     future provide banking services.

                                        5

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     2.2 SUBSIDIES/CREDIT ENHANCEMENTS.

          (a) If the Bank refers to NOVA a merchant who desires to receive
     Merchant Services and meets the Underwriting Guidelines, but such referred
     merchant is unwilling to offer discount revenue at a rate NOVA would
     otherwise require, then the Bank shall have the right (exercisable in its
     sole discretion), but not the obligation, to offer to subsidize such
     discount revenue by payment to NOVA of such amounts as NOVA may require.
     The Bank must agree to any such subsidy in writing in the form and upon
     such terms as are acceptable to NOVA; provided, however, that in no event
     shall NOVA and the Member be obligated to enter into a Merchant Agreement
     with any referred merchant with respect to whom the Bank has offered such a
     subsidy.

          (b) In the event NOVA or the Member declines to enter into a Merchant
     Agreement with any referred merchant in accordance with Section 2.1(b), the
     Bank shall have the right (exercisable in its sole discretion), but not the
     obligation, to offer to NOVA and the Member such assurances and guarantees
     (including indemnification and/or credit enhancements), as may be requested
     by NOVA or the Member, providing that NOVA and the Member will not incur or
     suffer any losses associated with the acceptance of such referred merchant;
     provided, however, that in no event shall NOVA or the Member be obligated
     to enter into a Merchant Agreement with any referred merchant with respect
     to whom the Bank has offered such assurances or guarantees.

          (c) NOVA covenants and agrees that any reserve accounts entered into
     with Merchants in accordance with this Section 2.2 will be held at the
     Bank.

     2.3 PAYMENT OF ROYALTIES.

          (a) During the term of this Agreement (including any extensions or
     renewals hereof), and with respect to each Referred Merchant, NOVA shall
     pay to the Bank (i) a royalty of ten percent (10%) of the Net Sales Revenue
     processed through NOVA's network by such Referred Merchant and collected by
     NOVA (the "New Merchant Account Royalty"), and (ii) a one-time flat fee of
     Fifty Dollars ($50.00) for each Referred Merchant (the "Flat Fee").

          (b) The New Merchant Account Royalty and the Flat Fee shall be
     calculated on a calendar quarter basis and shall be paid, in arrears,
     within forty-five (45) days of the end of each calendar quarter with
     respect to which the New Merchant Account Royalty is due hereunder.

     2.4 OWNERSHIP OF MERCHANT AGREEMENTS. Each of NOVA, the Bank and Parent
acknowledges and agrees that any merchant that is a party to a Merchant
Agreement does and shall have a direct business relationship with NOVA. Subject
to the Payment Network Regulations, and notwithstanding the Bank being a party
to any such Merchant Agreement, or anything to the contrary in any Merchant
Agreement, NOVA does and shall own, administer and control the Merchant
Agreements and the relationship created thereby (such control shall include,
without limitation, decisions regarding the continuance, amendment, assignment
or termination of such Merchant Agreement). The Bank acknowledges and agrees
that, with

                                        6

<PAGE>

respect to any Merchant Agreement to which the Bank is a party, the Bank shall,
upon the request of NOVA, and with respect to any Merchant or Referred Merchant
designated by NOVA, assign to NOVA and/or such Member as is designated by NOVA
all of the Bank's rights and obligations with respect to the Merchant Agreement
relating to such Merchant or Referred Merchant. Upon any such request, the Bank
agrees to execute all instruments and documents as may reasonably be requested
by NOVA in order to effectuate the assignment of such rights and obligations.
The Bank also agrees that NOVA may designate, redesignate, or substitute any
Member to be the "Member" under the terms of this Agreement with respect to any
merchant that is a party to a Merchant Agreement, and the sponsorship of the
Bank's activity hereunder. The Bank agrees to take such steps as may reasonably
be requested by NOVA to effect any such change in the Member.

     2.5 USE OF BANK'S LICENSED MARKS. The Bank hereby grants to NOVA a limited,
non-exclusive, non-transferable, royalty-free license, during the term of this
Agreement (including any extensions and renewals hereof), to use the Bank's name
and other trademarks and service marks identified on Schedule 2.5 attached
hereto (the "Licensed Marks") on FTD transaction slips, in merchant agreements,
and in such other Auxiliary Documents furnished to merchants or to prospective
merchants to the extent: (i) required by applicable provisions of the Payment
Network Regulations; and (ii) as reasonably requested by NOVA. Notwithstanding
any termination of such license, the parties acknowledge that they shall not be
obligated to recall or retrieve any information, media or document previously
distributed on behalf of the Merchant Business conducted hereunder.

     2.6 SERVICING AND MONITORING OF MERCHANT BANK CARD ACCOUNTS. The parties
hereto agree that all merchant bank card accounts of Merchants and Referred
Merchants shall be serviced as follows:

          (a) Each Referred Merchant and Merchant shall maintain a designated
     deposit account or accounts at the Bank or another depository institution
     approved by NOVA and the Member. The Member shall be permitted access to
     any funds in such account to the extent funds are needed to fund fees,
     assessments, chargebacks, returned items or any other obligations of a
     Referred Merchant or Merchant to NOVA, the Member, the Payment Networks, or
     any FTD issuing bank or account holder.

          (b) From time to time and upon NOVA's request, the Bank shall use
     commercially reasonable efforts to assist NOVA in its efforts to monitor
     the business activities and deposit accounts of Referred Merchants and
     Merchants. The Bank shall comply with all reasonable requests of NOVA and
     the Member to conduct investigations, supply information or perform any
     other act or thing relating to investigating Merchant or Referred Merchant
     activities and condition. Notwithstanding the foregoing, nothing in this
     Section 2.6(b) shall be construed to require the Bank to take any action
     that is in violation of applicable law or regulation or the Bank's deposit
     agreement with any Merchant or Referred Merchant.

     2.7 PAYMENT NETWORK LICENSING. The Bank shall, to the extent required by
the rules and regulations of the Payment Networks, obtain and maintain such
memberships or licenses with the Payment Networks during the term of this
Agreement (including any extensions and

                                        7

<PAGE>

renewals hereof) as are necessary for NOVA and the Bank to fully perform their
obligations hereunder. The Bank hereby covenants and agrees to comply in all
respects with the rules and regulations promulgated by the Payment Networks
necessary for the Bank to perform its obligations hereunder.

     2.8 CONFIDENTIALITY.

          (a) NOVA, the Bank and Parent acknowledge that, in the performance of
     the obligations of each of NOVA, the Bank and Parent under this Agreement,
     each of the parties will be in possession of confidential and proprietary
     information of the other parties and of Merchants and Referred Merchants,
     including customer lists and customer information, customer account numbers
     and account documentation, the status of any account, pricing information,
     computer access codes, instruction and/or procedural manuals, business and
     financial plans, the Operative Documents, and any other data or information
     in the possession of NOVA, the Bank or Parent which is competitively
     sensitive and not generally known to the public ("Confidential
     Information"). NOVA, the Bank and Parent also acknowledge that each of the
     parties has an obligation to protect and maintain the confidentiality of
     such Confidential Information. Each of NOVA, Bank and Parent agree to use
     all reasonable efforts to maintain the confidentiality of such Confidential
     Information and to not disclose such Confidential Information for any
     purpose other than to the extent necessary for the performance of the
     obligations contemplated under this Agreement, the Merchant Agreements, and
     the Merchant Services conducted in connection herewith and therewith. Each
     party shall use all reasonable efforts to inform its employees, agents,
     representatives and independent contractors of the confidential nature of
     the Confidential Information and to cause them to comply with the terms of
     this Section 2.8. Notwithstanding the foregoing, the Bank and NOVA
     acknowledge and agree that the restrictions contained in this Section 2.8
     shall not apply to any disclosures of such Confidential Information by NOVA
     or the Bank, as applicable, in connection with, or as may be required
     relating to (a) the provision by NOVA of Merchant Services under this
     Agreement or the other Operative Documents, or otherwise in connection with
     NOVA's or the Bank's performance of their respective obligations hereunder
     or thereunder, (b) such disclosure as may be required by applicable law or
     regulation or Payment Network Regulations, (c) such disclosure as is
     contained in or required to prepare any financial statements (including the
     notes thereto), (d) appropriate or necessary disclosure to banking
     authorities or regulators, including as may result from NOVA's status as an
     affiliate of U.S. Bancorp or another bank, or (e) disclosure to U.S.
     Bancorp's Corporate and Compliance Units. The covenants contained in this
     Section 2.8 shall survive for the term of this Agreement.

          (b) If NOVA, the Bank or Parent breaches its duties under this Section
     2.8, the parties agree that the nonbreaching party will suffer irreparable
     harm and the total amount of monetary damages therefor will be impossible
     to calculate and will therefore be an inadequate remedy. Accordingly, the
     parties agree that the nonbreaching party shall be entitled to temporary
     and permanent injunctive relief against the breaching party, its employees,
     agents, representatives, or independent contractors, and the other rights
     and remedies to which any of them may be entitled at law, in equity and
     under this Agreement.

                                        8

<PAGE>

     2.9 NON-FACILITATION OF SOLICITATION.

          (a) NOVA will not solicit, nor will it knowingly facilitate the
     solicitation by any Restricted Party of, any Merchant or Referred Merchant
     that is known to NOVA to have a deposit or credit relationship with the
     Bank for Banking Products.

          (b) For purposes of this Section 2.9, the following terms shall have
     the following meanings:

               (i) "Banking Products" means business deposit accounts or credit
          accounts offered by the Bank (other than those related to the Merchant
          Services offered by NOVA pursuant to this Agreement).

               (ii) "Restricted Party" means any affiliate of NOVA that sells or
          markets banking products competitive with the Banking Products offered
          by the Bank.

     2.10 SERVICE LEVELS.

          (a) Commencing after the Transition Date, during the term of this
     Agreement, NOVA shall use its commercially reasonable efforts to comply
     with the service levels set forth on Schedule 2.10 (the "Service Levels").

          (b) The Bank and NOVA acknowledge and agree that the Bank's right to
     terminate this Agreement in connection with or arising out of NOVA's
     failure to comply with the Service Levels is set forth exclusively in this
     Section 2.10(b).

               (i) Failure by NOVA to meet or exceed any of the Service Levels
          shall not constitute an uncured default of a material obligation of
          NOVA under Section 6.3(a) hereof unless and until such failure
          constitutes a "Persistent and Critical Service Failure," as defined
          below. A "Persistent and Critical Service Failure" will constitute an
          uncured default of a material obligation of NOVA under Section 6.3(a)
          hereof, and, as such, will be grounds for termination of this
          Agreement pursuant to Section 6.3(a).

               (ii) In the event that NOVA fails to meet or surpass at least
          seven of the eight Service Levels listed on Schedule 2.10 in any
          calendar month during the term hereof (any such failure, a "Service
          Failure"), such calendar month shall be deemed an "Under-Performance
          Period," and NOVA shall give the Bank notice thereof, and shall
          otherwise promptly take commercially reasonable efforts to address and
          remedy all such Service Failures that contributed to such
          Under-Performance Period.

               (iii) In the event of two consecutive Under-Performance Periods,
          NOVA shall give the Bank notice thereof and, in addition to its
          obligations set forth in Section 2.10(b)(ii) above, shall be available
          for daily or weekly calls, at the Bank's discretion, to address,
          monitor and remedy such Service Failures.

                                        9

<PAGE>

               (iv) Thereafter, in the event of a third consecutive
          Under-Performance Period, such circumstance shall be deemed a
          "Persistent and Critical Service Failure" which shall be grounds for
          immediate termination of this Agreement pursuant to Section 6.3(a);
          provided, that if the Bank does not elect to terminate this Agreement
          pursuant to Section 6.3(a) within sixty (60) days of the occurrence of
          such Persistent and Critical Service Failure, then such right shall
          lapse unless and until another Persistent and Critical Service Failure
          occurs.

     2.11 SALE OF AFFECTED MERCHANTS.

          (a) If, during the term of this Agreement, NOVA concludes a definitive
     agreement to sell all of the Merchants and Referred Merchants (the
     "Affected Merchants") to an unaffiliated third party purchaser (a
     "Potential Purchaser"), then the Bank shall have a right of first refusal
     (such right to be exercised within thirty (30) days of notice of same) to
     purchase such Affected Merchants on the terms and subject to the conditions
     agreed to with such Potential Purchaser. In addition, if NOVA elects to
     sell the Affected Merchants but cannot locate a Potential Purchaser, then
     NOVA will enter into good faith negotiations with the Bank to sell such
     Affected Merchants to the Bank on terms and conditions mutually agreeable
     to the parties.

          (b) In no event shall the provisions of this Section 2.11 apply to a
     Change in Control or a Sale of Assets of NOVA, U.S. Bank National
     Association or U.S. Bancorp.

     2.12 NON-COMPETITION AGREEMENT. The parties hereto acknowledge and agree
that in connection with the Purchase Agreement and this Agreement, the parties
have entered into the Non-Competition Agreement of even date herewith.

                                  ARTICLE III

                                BANK TRANSACTIONS

     3.1 GENERALLY.

          (a) The Bank (for purposes of this Article III, the defined term
     "Bank" shall be deemed to include any Parent Entity, as the context may
     require), and NOVA understand and agree that the Bank and/or other Parent
     Entities may, from time to time, consummate transactions (for purposes of
     this Article III, a "Transaction") with other financial institutions or
     other persons or entities (a "Third Party"), through stock or asset
     acquisition, merger, consolidation, or otherwise, where such Third Party
     (i) owns a merchant portfolio, and/or (ii) owns bank branches that may be
     used as a marketing/distribution channel for Merchant Services, and/or
     (iii) otherwise engages in Merchant Services (any such portfolio, and/or
     bank branch marketing/distribution channel, and/or other engagement in
     Merchant Services, being referred to herein as a "New Portfolio").

          (b) For purposes of this Article III, any independent, unrelated and
     unaffiliated Third Party that acquires the Bank in a Change in Control, or
     acquires all or substantially all of the assets of the Bank, shall be
     deemed a "Specified Third Party"

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<PAGE>

     hereunder and the New Portfolio of the Specified Third Party immediately
     prior to consummation of such Transaction shall be deemed a "Specified
     Portfolio" hereunder.

          (c) With respect to any such Transaction and with respect to any such
     New Portfolio that is not a Specified Portfolio, the Bank and NOVA shall,
     through compliance with the terms of this Article III, use commercially
     reasonable efforts to mutually negotiate and agree upon a transaction
     pursuant to which NOVA shall, subject to the terms of this Article III,
     purchase such New Portfolio upon mutually-agreed terms and conditions.

          (d) The Bank shall notify NOVA of the execution by it or any other
     Parent Entity of any agreement or entry into any arrangement that, if
     consummated, would result in a New Portfolio (the "New Portfolio Notice,"
     which shall affirmatively specify whether the New Portfolio is a Specified
     Portfolio). The Bank shall give such New Portfolio Notice as soon as
     circumstances and applicable law allow, which the parties contemplate would
     in no event be later than promptly following the first public announcement
     of any such agreement. To the extent the New Portfolio is a Specified
     Portfolio, the provisions of Section 3.2 shall not apply; rather, the
     provisions of Section 3.3 shall apply.

     3.2 NEW PORTFOLIOS THAT ARE NOT SPECIFIED PORTFOLIOS.

          (a) NOVA, in cooperation with the Bank, shall promptly take
     commercially reasonable efforts to value the New Portfolio and to plan the
     process by which such New Portfolio, if purchased by NOVA as herein
     permitted, would be converted to NOVA's systems and otherwise integrated
     into NOVA's operations. NOVA and the Bank shall concurrently undertake
     exclusive negotiations, with respect to the value of the New Portfolio, the
     consideration proposed to be paid for the New Portfolio, and the proposed
     timing of such New Portfolio purchase by NOVA. This period of exclusive
     negotiation shall end not sooner than one hundred eighty (180) days
     following the consummation of the Transaction that triggers the New
     Portfolio Notice (or, if later, and with respect to Transactions involving
     a "Conflicting Processor Agreement," as defined below, one hundred eighty
     (180) days following the notice of termination or expiration of such
     Conflicting Processor Agreement) (the "Exclusive Period"). During the
     Exclusive Period, the Bank and NOVA shall use commercially reasonable
     efforts to negotiate in good faith a mutually-agreed sales price and other
     terms and conditions for the purchase by NOVA of such New Portfolio,
     evidenced by a definitive purchase agreement setting forth final terms of
     such purchase (a "Definitive Purchase Agreement"). During the Exclusive
     Period, the Bank and NOVA shall also consider, among other things, whether
     the Bank would be obligated to make any material payments to terminate any
     agreements with any existing Merchant Services processor (a "Conflicting
     Processor Agreement") for such New Portfolio.

          (b) In the event that the New Portfolio is bound or otherwise
     encumbered by a Conflicting Processor Agreement, the Bank shall terminate
     such Conflicting Processor Agreement or, if termination is not allowed,
     allow such Conflicting Processor Agreement to naturally expire without
     renewal (including but not limited to providing notice of non-

                                       11

<PAGE>

     renewal), in each instance as soon as is reasonably possible so as to allow
     the negotiated purchase of the New Portfolio by NOVA as herein contemplated
     to occur. If such Conflicting Processor Agreement includes termination
     fees, liquidated damages, or other penalties (collectively, "Termination
     Fees"), NOVA shall have the option of agreeing to pay all of such
     Termination Fees, thereby requiring the Bank to affirmatively terminate
     such Conflicting Processor Agreement as soon as practicable following
     consummation of the transaction contemplated by the Definitive Purchase
     Agreement. However, if NOVA does not agree to pay all such Termination
     Fees, the New Portfolio may continue to receive Merchant Services from such
     provider under such Conflicting Processor Agreement until the earliest
     termination or natural expiration without renewal (including but not
     limited to providing notice of non-renewal) of such Conflicting Processor
     Agreement as herein contemplated, whereupon this Section 3.2 shall continue
     to be applicable to such New Portfolio.

          (c) If NOVA and the Bank, after good faith exclusive negotiations as
     described herein, within the time period described herein, and otherwise in
     compliance with the procedures described herein, are unable to agree upon
     the terms of, and enter into, a Definitive Purchase Agreement with respect
     to a New Portfolio, then the Bank shall have no more than one hundred fifty
     (150) days (the "Alternative Sale Period") in which to sell such New
     Portfolio to an independent, unrelated and unaffiliated third party
     pursuant to a bidding and sales process, provided that such sales price
     shall not be less than the fair market value of such New Portfolio, as
     established by an independent third party appraiser recognized and skilled
     in valuing businesses engaged in the Merchant Services business.

          (d) If, after compliance with this Article III, the Bank does not
     consummate the sale of the New Portfolio within the Alternative Sale Period
     as herein contemplated, the Bank may operate such New Portfolio within the
     ordinary course of business and such operation in and of itself shall not
     be deemed in breach of Article II hereof or Section 2.2 of the
     Non-Competition Agreement; provided, however, that the provisions of
     Sections 2.1 and 2.3 of the Non-Competition Agreement shall continue to
     apply to the Bank. Further, to the extent the Bank later elects to sell,
     assign or transfer the New Portfolio, the provisions of this Section 3.2
     shall once again apply to such sale.

     3.3 SPECIFIED PORTFOLIOS. Each Specified Portfolio shall be subject to the
provisions of Section 3.4(b) hereof. Further, to the extent the Bank or the
Specified Third Party elects to sell, assign or transfer such Specified
Portfolio pursuant to a bidding process, then NOVA shall be entitled to
participate in such bid process and NOVA, and any offer it shall make, shall be
given equal consideration therein.

     3.4 NO VIOLATION OF THE NON-COMPETITION AGREEMENT.

          (a) Non-Specified Portfolios. With respect solely to any applicable
     New Portfolio that is not a Specified Portfolio, and for so long as the
     Bank complies with the provisions of this Article III, the operation in the
     ordinary course of business of the Merchant Services business by the Bank
     relating solely to such New Portfolio shall not in

                                       12

<PAGE>

     and of itself be deemed in breach of Article II hereof or Section 2.2 of
     the Non-Competition Agreement.

          (b) Specified Portfolios. With respect solely to a Specified
     Portfolio, the Bank or the Specified Third Party, as the case may be, may
     in its sole discretion elect to continue to operate the Merchant Services
     business relating solely to such Specified Portfolio in the ordinary course
     of business, so long as such operation is not under or in connection with
     the Bank's branches, name or brand (or otherwise in violation of Section
     2.3 of the Non-Competition Agreement) and does not materially interfere
     with the benefit of the bargain received by NOVA hereunder, and such acts
     shall not in and of themselves be deemed a breach of Article II hereof or
     of Section 2.2 of the Non-Competition Agreement; provided, however, that at
     such time, if ever, as the Bank or the Specified Third Party, as the case
     may be, elects to sell, assign or transfer, or solicit, consider, or
     entertain offers to sell, assign or transfer, the Specified Portfolio or
     the Merchant Services relating thereto, or otherwise elects to discontinue
     its operation of the Merchant Services business relating to such Specified
     Portfolio, then it shall promptly give NOVA notice of such decision,
     whereupon the provisions of Section 3.3 shall apply to such Specified
     Portfolio.

                                   ARTICLE IV

                                  CASH ADVANCES

     4.1 CASH ADVANCE PROCEDURE. During the term of this Agreement (including
any extensions or renewals hereof), the Bank will continue to make advances of
cash ("Cash Advances") to holders of Financial Transaction Devices in accordance
with the Payment Networks Regulations and NOVA's procedures, and shall cause all
records of such Cash Advances to be delivered in accordance with the obligations
of the Bank relating to Cash Advances. During the term of this Agreement
(including any extensions or renewals hereof), the Bank shall use NOVA and a
Member designated by NOVA as the exclusive processor of Cash Advances made by
the Bank. In this connection, NOVA will from time to time deploy and update
software to the cash advance terminals at the Bank's branches, and will deploy
new cash advance terminals at its expense, as and to the extent necessary to
permit the Bank to comply with its obligations under this Section 4.1.

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

     5.1 REPRESENTATIONS AND WARRANTIES OF THE BANK. The Bank represents and
warrants to NOVA as follows:

          (a) The Bank is a duly organized state-chartered bank, validly
     existing and in good standing under the laws of the State of Oregon. The
     Bank has full power and authority to carry on its business as it is now
     being conducted and to own and operate its properties and assets.

                                       13

<PAGE>

          (b) The Bank has all requisite power and authority to enter into,
     adopt and perform all of its obligations under this Agreement. The
     execution, adoption and delivery of this Agreement have been duly and
     validly authorized by all necessary action on the part of the Bank, and
     upon execution and delivery by the other parties hereto, this Agreement
     will constitute a legal, valid and binding obligation of the Bank,
     enforceable against the Bank in accordance with its terms.

          (c) Neither the execution and delivery by the Bank of this Agreement
     nor the performance of this Agreement by the Bank will violate any
     applicable law, rule or regulation. The performance of this Agreement by
     the Bank will not violate the Bank's charter or bylaws, or any contract or
     other instrument to which it is a party or by which it is bound and will
     not violate any outstanding judgment, order, injunction, law, rule or
     regulation to which it is subject.

          (d) There are no actions, suits, claims, governmental investigations
     or proceedings instituted, pending or, to the knowledge of the Bank,
     threatened against the Bank or against any asset, interest or right of the
     Bank, that would, if determined adversely to the Bank, have a material
     adverse effect on the Bank or would materially adversely affect the ability
     of the Bank to perform its obligations under this Agreement.

     5.2 REPRESENTATIONS AND WARRANTIES OF PARENT. Parent represents and
warrants to NOVA as follows:

          (a) Parent is a duly organized corporation, validly existing and in
     good standing under the laws of the State of Oregon. Parent has full power
     and authority to carry on its business as it is now being conducted and to
     own and operate its properties and assets. Parent owns one hundred percent
     (100%) of the issued and outstanding capital stock of the Bank, and the
     Bank is the only Affiliate of Parent that conducts banking business.

          (b) Parent has all requisite power and authority to enter into, adopt
     and perform all of its obligations under this Agreement. The execution,
     adoption and delivery of this Agreement have been duly and validly
     authorized by all necessary corporate action on the part of Parent, and
     upon execution and delivery by the other parties hereto, this Agreement
     will constitute a legal, valid and binding obligation of Parent.

          (c) Neither the execution and delivery by Parent of this Agreement nor
     the performance of this Agreement by Parent will violate any applicable
     law, rule or regulation. The performance by Parent of its obligations under
     this Agreement will not violate Parent's articles of incorporation or
     bylaws, or any contract or other instrument to which it is a party or by
     which it is bound and will not violate any outstanding judgment, order,
     injunction, law, rule or regulation to which it is subject.

          (d) There are no actions, suits, claims, governmental investigations
     or proceedings instituted, pending or, to the knowledge of Parent,
     threatened against Parent or against any asset, interest or right of
     Parent, that would, if determined adversely to

                                       14

<PAGE>

     Parent, have a material adverse effect on Parent or would materially
     adversely affect the ability of Parent to perform its obligations under
     this Agreement.

     5.3 REPRESENTATIONS AND WARRANTIES OF NOVA. NOVA represents and warrants to
the Bank and Parent as follows:

          (a) NOVA is a duly organized corporation, validly existing and in good
     standing under the laws of the State of Georgia. NOVA has full power and
     authority to carry on its business as it is now being conducted and to own
     and operate its properties and assets.

          (b) NOVA has all requisite power and authority to enter into, adopt
     and perform all of its obligations under this Agreement. The execution,
     adoption and delivery of this Agreement have been duly and validly
     authorized by all necessary corporate action on the part of NOVA, and upon
     execution and delivery by the other parties hereto, this Agreement will
     constitute a legal, valid and binding obligation of NOVA, enforceable
     against it in accordance with its terms.

          (c) Neither the execution and delivery by NOVA of this Agreement nor
     the performance of this Agreement by NOVA will violate any applicable law,
     rule or regulation. The performance of this Agreement by NOVA will not
     violate NOVA's articles of incorporation or bylaws, or any contract or
     other instrument to which it is a party or by which it is bound and will
     not violate any outstanding judgment, order, injunction, law, rule or
     regulation to which it is subject.

          (d) There are no actions, suits, claims, governmental investigations
     or proceedings instituted, pending or, to the knowledge of NOVA, threatened
     against NOVA or against any asset, interest or right of NOVA, that would,
     if determined adversely to NOVA, have a material adverse effect on NOVA or
     would materially adversely affect the ability of NOVA to perform its
     obligations under this Agreement.

                                   ARTICLE VI

                        TERM AND TERMINATION OF AGREEMENT

     6.1 TERM OF AGREEMENT. The term of this Agreement shall extend for an
initial term of seven (7) years from the date hereof (the "Initial Term"), and
shall thereafter be automatically extended for consecutive two-year renewal
terms, provided neither the Bank nor NOVA gives written notice to the other of
its intent not to renew not less than one hundred eighty (180) days prior to the
expiration of the Initial Term or any renewal term.

     6.2 TERMINATION BY NOVA. In the event that:

          (a) the Bank defaults in the performance of any of its material
     obligations under this Agreement, and fails to cure such default within
     thirty (30) days after written notice (which notice indicates that NOVA may
     terminate this Agreement pursuant to this Section 6.2(a) if such default is
     not cured as provided herein) and demand for cure by NOVA; provided,
     however, if, upon receipt of such written notice, the Bank promptly

                                       15

<PAGE>

     commences and diligently pursues the cure to completion as soon as
     reasonably possible, then such 30-day period shall be extended for the
     period of time which is reasonably necessary to cure the default, but in no
     event more than three months after such written notice; provided, further,
     that in the event such default remains uncured after the passage of the
     time period specified herein, that a second notice shall have been sent to
     the chief executive officer or chief operating officer of the Bank
     notifying such officer of such uncured default and stating that NOVA
     intends to terminate the Agreement pursuant to this Section 6.2(a) within
     ten days thereafter unless the default is cured within then (10) days of
     the Bank's receipt of such notice; and provided, further, that in the event
     the Bank disputes that fact (or the fact that the default is a default of a
     "material obligation"), then the provisions of Section 8.13 shall have been
     complied with and any such dispute resolved as provided therein; or

          (b) any material amount due and payable to NOVA by the Bank under this
     Agreement is not paid within fifteen (15) days after the Bank receives
     written notice (which notice indicates that NOVA may terminate this
     Agreement pursuant to this Section 6.2(b) if such non-payment is not cured
     as provided herein) of such non-payment, and demand for cure; provided,
     however, that in the event such non-payment remains uncured after the
     passage of the time period specified herein, that a second notice shall
     have been sent to the chief executive officer or chief operating officer of
     Parent or the Bank notifying such officer of such uncured non-payment and
     stating that NOVA intends to terminate the Agreement pursuant to this
     Section 6.2(b) within ten days thereafter unless the default is cured
     within ten (10) days of the Bank's receipt of such notice; and provided,
     further, that in the event the Bank disputes that fact (or the fact that
     such non-payment is of a "material" amount), then the provisions of Section
     8.13 shall have been complied with and any such dispute resolved as
     provided therein; or

          (c) there occurs a Voluntary Bankruptcy Proceeding or an Involuntary
     Bankruptcy Proceeding with respect to Parent or the Bank;

then, in any such case, NOVA, at its option, may terminate this Agreement
immediately upon written notice to Parent and the Bank.

     6.3 TERMINATION BY THE BANK OR PARENT. In the event that:

          (a) NOVA defaults in the performance of any of its material
     obligations under this Agreement and fails to cure such default within
     thirty (30) days after written notice (which notice indicates that the Bank
     may terminate this Agreement pursuant to this Section 6.3(a) if such
     default is not cured as provided herein) and demand for cure by the Bank;
     provided, however, if, upon receipt of such written notice, NOVA promptly
     commences and diligently pursues the cure to completion as soon as
     reasonably possible, then such 30-day period shall be extended for the
     period of time which is reasonably necessary to cure the default, but in no
     event more than three months after such written notice; provided, further,
     that in the event such default remains uncured after the passage of the
     time period specified herein, that a second notice shall have been sent to
     the chief executive officer or chief operating officer of NOVA notifying
     such officer of such uncured default and stating that the Bank intends to
     terminate the Agreement pursuant to

                                       16

<PAGE>

     this Section 6.3(a) within ten days thereafter unless the default is cured
     within ten (10) days of NOVA's receipt of such notice; and provided,
     further, that in the event NOVA disputes that fact (or the fact that the
     default is a default of a "material obligation"), then the provisions of
     Section 8.13 shall have been complied with and any such dispute resolved as
     provided therein; or

          (b) any material amount due and payable to the Bank by NOVA under this
     Agreement is not paid within fifteen (15) days after NOVA receives written
     notice (which notice indicates that the Bank may terminate this Agreement
     pursuant to this Section 6.3(b) if such non-payment is not cured as
     provided herein) of such non-payment, and demand for cure; provided,
     however, that in the event such non-payment remains uncured after the
     passage of the time period specified herein, that a second notice shall
     have been sent to the chief executive officer or chief operating officer of
     NOVA notifying such officer of such uncured non-payment and stating that
     the Bank intends to terminate the Agreement pursuant to this Section 6.3(b)
     within ten days thereafter unless the default is cured within ten (10) days
     of NOVA's receipt of such notice; and provided, further, that in the NOVA
     disputes that fact (or the fact that such non-payment is of a "material"
     amount), then the provisions of Section 8.13 shall have been complied with
     and any such dispute resolved as provided therein; or

          (c) there occurs a Voluntary Bankruptcy Proceeding or an Involuntary
     Bankruptcy Proceeding with respect to NOVA;

then, in any such case, Parent or the Bank, at their option, may terminate this
Agreement immediately upon written notice to NOVA.

     6.4 TERMINATION BY MUTUAL CONSENT. In addition to the circumstances set
forth in Section 6.2 and 6.3, this Agreement may be terminated at any time upon
the mutual written consent of the Bank, Parent and NOVA.

     6.5 EFFECT OF TERMINATION.

          (a) Upon termination or expiration of this Agreement, (i) NOVA shall
     pay to the Bank any New Merchant Account Royalties, Flat Fees, and
     reimbursements for expenses then accrued and properly payable under this
     Agreement, (ii) each of Parent and the Bank will return to NOVA all
     materials in their possession provided by NOVA and/or the Member, (iii)
     NOVA shall return to Parent and the Bank all materials in its possession
     provided by Parent and/or the Bank (which in no event shall include any of
     the Assets Sold), and shall discontinue all uses of the Licensed Marks,
     (iv) NOVA and NOVA's designated Member shall retain all right, title and
     interest in and to the Merchant Agreements and Parent and the Bank shall
     have no interest in such Merchant Agreements, and (v) if a merchant that is
     party to a Merchant Agreement maintains with the Bank a demand deposit
     account, NOVA's designated Member shall retain the right to charge such
     account pursuant to the terms of the applicable Merchant Agreement.

          (b) Notwithstanding the exercise by any party of its rights under this
     Article VI, no termination of this Agreement shall relieve any of the
     parties hereto of its liability

                                       17

<PAGE>

     for the payment or performance of any obligation accrued prior to the
     effective date of such termination (including any indemnification
     obligation arising hereunder, whether or not notice of such indemnification
     claim has been given before such termination).

          (c) Notwithstanding the expiration or termination of this Agreement by
     any party hereto pursuant to this Article VI or otherwise, the Bank shall
     cooperate with NOVA and shall promptly execute any and all documents and
     instruments reasonably requested by NOVA in order to effectuate an orderly
     transition of (i) the Merchant Services provided to any Merchant or
     Referred Merchant, and (ii) any "Member" responsibilities held by the Bank
     in connection herewith or therewith (as contemplated by Section 2.4
     hereof).

                                   ARTICLE VII

                                 INDEMNIFICATION

     7.1 INDEMNIFICATION BY PARENT AND THE BANK. Parent and the Bank shall
jointly and severally indemnify, defend, and hold harmless NOVA, its affiliates,
their respective successors and assigns, and their respective officers,
directors, employees, consultants, agents and representatives from any
liability, loss, damage, cost, claim, diminution in value or expense, including
reasonable attorneys' and accountants' fees and expenses, that result from or
arise out of (i) the breach or inaccuracy of any of the Bank's or Parent's
representations or warranties in this Agreement; or (ii) the breach of any of
the Bank's or Parent's covenants or agreements in this Agreement.

     7.2 INDEMNIFICATION BY NOVA. NOVA shall indemnify, defend, and hold
harmless Parent, the Bank, their affiliates, their respective successors and
assigns, and their respective officers, directors, employees, consultants,
agents and representatives from any liability, loss, cost, damage, claim,
diminution in value or expense, including reasonable attorneys' and accountants'
fees and expenses, that result from or arise out of (i) the breach or inaccuracy
of any of NOVA's representations or warranties in this Agreement; or (ii) the
breach of any of NOVA's covenants or agreements in this Agreement.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     8.1 EXPENSES. Except as otherwise specifically provided in this Agreement,
each party shall pay its own costs and expenses in connection with this
Agreement and the transactions contemplated hereby, including all attorneys'
fees, accounting fees and other expenses.

     8.2 NOTICES AND PAYMENTS. Except as otherwise specified herein, all
notices, demands and other communications hereunder shall be in writing and
shall be delivered (i) in person, or (ii) by United States mail, certified or
registered, with return receipt requested, or (iii) by national overnight
courier service, as follows:

                                       18

<PAGE>

          If to the Bank or Parent: Umpqua Holdings Corporation
                                    200 S.W. Market St., Suite 1900
                                    Portland, Oregon 97201
                                    Attention: Daniel A. Sullivan
                                               Executive Vice President,
                                               Chief Financial Officer

          with a copy to:           Umpqua Bank Legal Department
          (which shall not          P.O. Box 1560
          constitute notice)        Eugene, Oregon 97440
                                    Attention: Steven L. Philpott, Esq.
                                               Executive Vice President,
                                               General Counsel

          If to NOVA:               NOVA Information Systems, Inc.
                                    One Concourse Parkway, Suite 300
                                    Atlanta, Georgia 30328
                                    Attention: Cherie M. Fuzzell, Esq.
                                               Executive Vice President
                                               and General Counsel

          with a copy to:           NOVA Information Systems, Inc.
          (which shall not          One Concourse Parkway, Suite 300
          constitute notice)        Atlanta, Georgia 30328
                                    Attention: Edward M. O'Hare
                                               Senior Vice President

          with a copy to:           McKenna Long & Aldridge LLP
          (which shall not          SunTrust Plaza, Suite 5300
          constitute notice)        303 Peachtree Street, N.E.
                                    Atlanta, Georgia 30308
                                    Attention: Marc C. D'Annunzio, Esq.

The persons or addresses to which mailings or deliveries shall be made may be
changed from time to time by notice given pursuant to the provisions of this
Section 8.2. Any notice, demand or other communication given pursuant to the
provisions of this Section 8.2 shall be deemed to have been given on the date
actually delivered against proof of receipt therefor.

     8.3 THIRD-PARTY BENEFICIARIES. The parties to this Agreement do not intend
this Agreement to benefit or create any right or cause of action in or on behalf
of any person other than Parent, the Bank, NOVA and Member.

     8.4 INDEPENDENT CONTRACTORS. Nothing contained in this Agreement shall be
construed as creating or constituting a partnership, joint venture or agency
between the parties to this Agreement. Rather, the parties shall be deemed
independent contractors with respect to each other for all purposes.

                                       19

<PAGE>

     8.5 SUCCESSORS AND ASSIGNS. All terms and provisions of this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. This Agreement and the
rights, privileges, duties and obligations of the parties hereto may not be
assigned or delegated by any party without the prior written consent of the
other party; provided, however, that such consent shall not be required (a) for
the assignment by any party of its rights and privileges hereunder to a person
or entity controlling, controlled by or under common control with such party (it
being understood that no such assignment shall relieve the assigning party of
its duties or obligations hereunder), or (b) for the assignment and delegation
by any party of its rights, privileges, duties and obligations hereunder to any
person into or with which the assigning party shall merge or consolidate or to
which the assigning party shall sell all or substantially all of its assets,
provided that upon request of the non-assigning party the assignee shall
formally agree in writing to assume all the rights and obligations of the
assigning party created hereby.

     8.6 AMENDMENTS AND WAIVERS. This Agreement, any of the instruments referred
to herein and any of the provisions hereof or thereof shall not be amended,
modified or waived in any fashion except by an instrument in writing signed by
the parties hereto. The waiver by a party of any breach of this Agreement by
another party shall not operate or be construed as the waiver of the same or
another breach on a subsequent occasion, nor shall any delay in exercising any
right, power or privilege hereunder constitute a waiver thereof.

     8.7 SEVERABILITY OF PROVISIONS. If any provision of this Agreement, or the
application of any such provision to any person or circumstance, is invalid or
unenforceable, the remainder of this Agreement, or the application of such
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected by such invalidity or unenforceability.

     8.8 COUNTERPARTS; DELIVERY. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one instrument. The
parties acknowledge that delivery of executed counterparts of this Agreement may
be effected by a facsimile transmission or other comparable means, with an
original document to be delivered promptly thereafter via overnight courier.

     8.9 GOVERNING LAW. This Agreement is made and entered into under the laws
of the State of Georgia, and the laws of that State applicable to agreements
made and to be performed entirely thereunder (without giving effect to the
principles of conflicts of laws thereof) shall govern the validity and
interpretation hereof and the performance by the parties hereto of their
respective duties and obligations hereunder.

     8.10 SECTION HEADINGS. The headings of Sections contained in this Agreement
are for convenience of reference only and do not form a part of this Agreement.

     8.11 ENTIRE AGREEMENT. The making, execution and delivery of this Agreement
by the parties hereto have been induced by no representations, statements,
warranties or agreements other than those expressed herein and in the Purchase
Agreement. This Agreement, the Purchase Agreement, the Non-Competition Agreement
and the other written instruments specifically referred to herein and therein,
embody the entire understanding of the parties and supersede in

                                       20

<PAGE>

their entirety all prior communication, correspondence, and instruments, and
there are no further or other agreements or understandings, written or oral, in
effect between the parties relating to the subject matter hereof.

     8.12 PUBLICITY. The timing and content of any and all public statements,
announcements or other publicity concerning the transactions contemplated herein
shall be mutually agreed upon by Parent and NOVA, which agreement shall not be
unreasonably withheld.

     8.13 DISPUTE RESOLUTION. With the exception of an action to enforce the
covenants of Sections 2.4 and 2.8 and Article III hereof, which may be brought
in any court of competent jurisdiction, any controversy, dispute or claim
arising out of, or in connection with, this Agreement must be settled by final
and binding arbitration to be held in Atlanta, Georgia in accordance with the
then current Commercial Arbitration Rules of the American Arbitration
Association ("AAA") as may be amended from time to time (the "AAA Rules").
Judgment upon an award rendered by the arbitrators may be entered in any court:
(i) having jurisdiction thereof, (ii) having jurisdiction over the party against
whom enforcement thereof is sought, or (iii) having jurisdiction over any such
party's assets. The award shall be rendered by a panel of three (3) arbitrators,
who shall be selected in accordance with the AAA Rules.

     8.14 FORCE MAJEURE. Notwithstanding any provision to the contrary contained
herein, no party hereto shall have any liability to any other party hereto for
any failure or deficiency in performance of obligations hereunder occurring by
reason of force majeure, meaning factors reasonably beyond the control of the
party obligated to perform, including war, conditions or events of nature, civil
disturbances, work stoppages, failures of telephone lines and equipment, power
failures or fires.

     8.15 SURVIVAL. The provisions of Sections 2.4, 2.8, and Articles VII and
VIII shall survive the termination of this Agreement.

                            (Signatures on next page)

                                       21

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Marketing and Sales Alliance Agreement as of the date first written above.

                                        "BANK":

                                        UMPQUA BANK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "PARENT":

                                        UMPQUA HOLDINGS CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "NOVA":

                                        NOVA INFORMATION SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                       22

<PAGE>

                                BILL OF SALE AND
                       ASSIGNMENT AND ASSUMPTION AGREEMENT

     FOR VALUE RECEIVED, the receipt, sufficiency and adequacy of which hereby
are acknowledged, UMPQUA BANK, an Oregon state-chartered bank (the "Bank"),
hereby does sell, transfer, assign, bargain, convey, deliver, abandon, and set
over unto NOVA INFORMATION SYSTEMS, INC., a Georgia corporation ("NOVA"), and
its successors and assigns, all of the Bank's right, title, and interest in and
to all properties, assets, and rights identified as the "Assets Sold" in Section
1.1 of the Merchant Asset Purchase Agreement dated December 21, 2004, by and
among the Bank, Umpqua Holdings Corporation, and NOVA (the "Merchant Asset
Purchase Agreement"). The Merchant Asset Purchase Agreement is incorporated
herein by this reference.

     The Bank, for itself and its successors, successors-in-title, and assigns,
fully represents, warrants and agrees that: it is the true, lawful, and sole
owner of the Assets Sold that are sold transferred, assigned, bargained,
conveyed, delivered, abandoned, and set over; it has the full, complete, and
lawful right, power, and authority to execute this Bill of Sale and Assignment
and Assumption Agreement and to so sell, transfer, assign, bargain, convey,
deliver, abandon and set over the Assets Sold; the rights, title and interests
in the Assets Sold hereby sold, transferred, assigned, bargained, conveyed,
delivered, abandoned and set over constitute good and marketable title to the
Assets Sold, free and clear of all security interests, security deeds, liens,
restrictions, encumbrances, leases, easements, and claims or rights of third
parties of every kind and nature whatsoever; and no other person, firm,
corporation or entity of any kind has any claim to or interest in the Assets
Sold.

     From time to time and at all times hereafter, upon the reasonable request
of NOVA, the Bank will do, execute, acknowledge and deliver or cause to be done,
executed, acknowledged and delivered all such further acts, deeds, assignments,
transfers, conveyances, powers of attorney, and assurances as may be reasonably
required by NOVA in order to more effectively carry out the purposes and intents
evidenced by this Bill of Sale and Assignment and Assumption Agreement and to
transfer the Assets Sold to NOVA.

     In furtherance of Section 1.2 of the Merchant Asset Purchase Agreement,
NOVA hereby assumes and agrees to pay and discharge all liabilities and
obligations which are identified and defined as "Assumed Liabilities" in Section
12.1 of the Merchant Asset Purchase Agreement.

     This Bill of Sale and Assignment and Assumption Agreement may be executed
in any number of counterparts, all of which taken together shall constitute one
and the same instrument.

                         (Signatures on following page)

<PAGE>

     The undersigned parties have caused this Bill of Sale and Assignment and
Assumption Agreement to be executed by their duly authorized officers as of the
21st day of December, 2004.

                                        "BANK":

                                        UMPQUA BANK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "NOVA":

                                        NOVA INFORMATION SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        2

<PAGE>

                            NON-COMPETITION AGREEMENT

     THIS NON-COMPETITION AGREEMENT (this "Agreement") is made and entered into
as of this 21st day of December, 2004 by and among UMPQUA BANK, an Oregon
state-chartered bank (the "Bank"), UMPQUA HOLDINGS CORPORATION, an Oregon
corporation and the sole shareholder of the Bank ("Parent"), and NOVA
INFORMATION SYSTEMS, INC., a Georgia corporation ("NOVA").

                             BACKGROUND AND PURPOSE

     A. The Bank and NOVA are in the business of providing point-of-sale-based
credit card, debit card, and other card-based transaction processing services
and electronic payment and settlement services (including the sale or lease of
products and services related thereto) to merchants, financial institutions
(including associate banks), independent sales organizations, and other similar
customers (the "Business"), and the Bank is a party to certain "Merchant
Agreements" in connection with the Business.

     B. The Bank desires to sell to NOVA, and NOVA desires to purchase from the
Bank, all of the Bank's assets relating to the Bank's Business, including but
not limited to Merchant Agreements, pursuant to the Merchant Asset Purchase
Agreement among NOVA, Parent and the Bank of even date herewith (the "Purchase
Agreement"), and in connection with the Purchase Agreement, NOVA would assume
certain obligations of the Bank.

     C. In connection with and as a fundamental part of the Purchase Agreement,
the Bank, Parent and NOVA would enter into the Marketing and Sales Alliance
Agreement of even date herewith (the "Marketing Agreement").

     D. NOVA engages in the Business in the United States of America, and NOVA
and its assigns will continue to develop and expand its Business throughout the
United States of America.

     E. As a condition precedent to the entering into of the Purchase Agreement
and the Marketing Agreement, and in order to protect the goodwill and other
value of the Assets Sold (as defined in the Purchase Agreement) and to protect
the legitimate business interests of NOVA, NOVA has required the Bank and Parent
to enter into this Agreement.

                                  THE AGREEMENT

     NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants and agreements herein contained, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto do hereby agree as follows:

<PAGE>

                                    ARTICLE I

                                   DEFINITIONS

     1.1 CERTAIN DEFINED TERMS. The following capitalized terms shall have the
following meanings for purposes of this Agreement:

     "AGENT BANK" shall have the meaning given to it in the Purchase Agreement.

     "ISO" shall have the meaning given to it in the Purchase Agreement.

     "MERCHANT" shall have the meaning given to it in the Purchase Agreement.

     "MERCHANT SERVICES" shall have the meaning given to it in the Marketing
Agreement.

     "PERSON" means any of a natural person, corporation, partnership, firm,
association, limited liability company, trust, estate or other entity of any
kind.

     "REFERRED MERCHANT" shall have the meaning given to it in the Marketing
Agreement.

                                   ARTICLE II

                        NON-SOLICITATION; NON-COMPETITION

     2.1 NON-SOLICITATION. Each of the Bank and Parent covenants and agrees
that, during the term of this Agreement (including any extensions or renewals
hereof) and for two (2) years immediately thereafter, neither the Bank nor
Parent, nor any of their respective affiliates or subsidiaries, shall, directly
or indirectly, whether individually, in partnership, jointly, or in conjunction
with, or on behalf of, any Person, solicit or contact any Merchant, Agent Bank,
ISO or Referred Merchant, for the purpose, directly or indirectly, of providing
or receiving Merchant Services anywhere in the United States.

     2.2 NON-COMPETITION. Each of the Bank and Parent covenants and agrees that,
during the term of this Agreement (including any extensions or renewals hereof),
subject to earlier termination as provided in Section 3.1 below, except to the
extent expressly permitted by Article III of the Marketing Agreement, neither
the Bank nor Parent, nor any of their respective affiliates or subsidiaries,
shall directly or indirectly, whether individually, in partnership, jointly, or
in conjunction with, or on behalf of, any Person:

          (a) engage or participate, directly or indirectly, in the Business in
     the United States, except for the benefit of NOVA as specifically provided
     in, and in strict compliance with the terms of, the Marketing Agreement; or

          (b) provide Merchant Services in the United States to any person or
     entity, or facilitate, refer, solicit, or otherwise participate or engage
     in the provision of Merchant Services in the United States to any person or
     entity, directly or indirectly, except for the benefit of NOVA as
     specifically provided in, and in strict compliance with the terms of, the
     Marketing Agreement.

                                        2

<PAGE>

     2.3 NO BRANDING OR USE OF NAME OR MARKS. Except for the benefit of NOVA as
specifically provided in, and in compliance with terms of, the Marketing
Agreement, and without limiting the generality of the covenants set forth in
Section 2.1 and 2.2 hereof, the Bank and Parent covenant and agree that no
Person shall use or be allowed to use any of the Bank's trade names, trademarks,
or service marks, or otherwise publicize in any manner any affiliation with, or
sponsorship or endorsement by, Bank or any of its affiliates, in connection with
the Business.

     2.4 ACKNOWLEDGMENTS. Each of Parent and the Bank acknowledges and agrees
that the restrictions set forth in Sections 2.1, 2.2 and 2.3 hereof are
reasonable and necessary to protect the legitimate business interests of NOVA,
and are reasonable and necessary to protect the goodwill and other value of the
Assets Sold (as defined in the Purchase Agreement), the Business of NOVA, and
the benefits bargained for by NOVA under the Purchase Agreement and the
Marketing Agreement. Each of Parent and the Bank further acknowledges and agrees
that the restrictions set forth in Sections 2.1, 2.2 and 2.3 hereof are narrowly
drawn, are fair and reasonable in time and territory, and place no greater
restraint upon Parent and the Bank than is reasonably necessary to secure the
goodwill and other value of the Assets Sold, the Business of NOVA, and the
benefits bargained for by NOVA under the Purchase Agreement and the Marketing
Agreement.

     2.5 REMEDIES. Each of the Bank and Parent acknowledges that a breach of the
restrictions contained in Sections 2.1, 2.2 or 2.3 hereof will cause irreparable
damage to NOVA, the exact amount of which will be difficult to ascertain, and
that the remedies at law for any such breach will be inadequate. Accordingly,
each of the Bank and Parent agrees that if it breaches the restrictions
contained in Sections 2.1, 2.2 or 2.3 hereof, then NOVA shall be entitled to
equitable relief, including but not limited to, injunctive relief, without
posting bond or other security unless otherwise required by applicable law, as
well as money damages insofar as they can be determined.

                                   ARTICLE III

                              TERM AND TERMINATION

     3.1 TERM OF AGREEMENT. The parties agree that the term of this Agreement
shall extend for an initial term of seven (7) years from the date hereof (the
"Initial Term"); provided, however, that the parties hereto acknowledge and
agree that the provisions of Section 2.2 hereof shall remain in full force and
effect only so long as the Marketing Agreement is in effect and that, upon the
effective date of the termination or expiration of the Marketing Agreement, the
provisions of Section 2.2 hereof shall be of no further force or effect.

     3.2 AUTOMATIC EXTENSION. In the event the Marketing Agreement is extended,
renewed or otherwise in effect for a period extending beyond the Initial Term of
this Agreement, this Agreement shall remain in full force and effect until such
time thereafter as the Marketing Agreement is terminated.

                                        3

<PAGE>

                                   ARTICLE IV

                                  MISCELLANEOUS

     4.1 NOTICES. Except as otherwise specified herein, all notices, demands and
other communications hereunder shall be in writing and shall be delivered (i) in
person, or (ii) by United States mail, certified or registered, with return
receipt requested, or (iii) by national overnight courier service, as follows:

          If to the Bank or Parent: Umpqua Holdings Corporation
                                    200 S.W. Market St., Suite 1900
                                    Portland, Oregon 97201
                                    Attention: Daniel A. Sullivan
                                               Executive Vice President,
                                               Chief Financial Officer

          with a copy to:           Umpqua Bank Legal Department
          (which shall not          P.O. Box 1560
          constitute notice)        Eugene, Oregon 97440
                                    Attention: Steven L. Philpott, Esq.
                                               Executive Vice President,
                                               General Counsel

          If to NOVA:               NOVA Information Systems, Inc.
                                    One Concourse Parkway, Suite 300
                                    Atlanta, Georgia 30328
                                    Attention: Cherie M. Fuzzell, Esq.
                                               Executive Vice President and
                                               General Counsel

          with a copy to:           NOVA Information Systems, Inc.
          (which shall not          One Concourse Parkway, Suite 300
          constitute notice)        Atlanta, Georgia 30328
                                    Attention: Edward M. O'Hare
                                               Senior Vice President

          with a copy to:           McKenna Long & Aldridge LLP
          (which shall not          SunTrust Plaza, Suite 5300
          constitute notice)        303 Peachtree Street, N.E.
                                    Atlanta, Georgia 30308
                                    Attention: Marc C. D'Annunzio, Esq.

The persons or addresses to which mailings or deliveries shall be made may be
changed from time to time by notice given pursuant to the provisions of this
Section 4.1. Any notice, demand or other communication given pursuant to the
provisions of this Section 4.1 shall be deemed to have been given on the date
actually delivered against proof of receipt therefor.

                                        4

<PAGE>

     4.2 THIRD-PARTY BENEFICIARIES. The parties to this Agreement do not intend
this Agreement to benefit or create any right or cause of action in or on behalf
of any person other than Parent, the Bank, and NOVA.

     4.3 SUCCESSORS AND ASSIGNS. All terms and provisions of this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. This Agreement and the
rights, privileges, duties and obligations of the parties hereto may not be
assigned or delegated by any party without the prior written consent of the
other party; provided, however, that such consent shall not be required (a) for
the assignment by any party of its rights and privileges hereunder to a person
or entity controlling, controlled by or under common control with such party (it
being understood that no such assignment shall relieve the assigning party of
its duties or obligations hereunder), or (b) for the assignment and delegation
by any party of its rights, privileges, duties and obligations hereunder to any
person into or with which the assigning party shall merge or consolidate or to
which the assigning party shall sell all or substantially all of its assets,
provided that upon the request of the non-assigning party the assignee shall
formally agree in writing to assume all the rights and obligations of the
assigning party created hereby.

     4.4 AMENDMENTS AND WAIVERS. This Agreement, any of the instruments referred
to herein and any of the provisions hereof or thereof shall not be amended,
modified or waived in any fashion except by an instrument in writing signed by
the parties hereto. The waiver by a party of any breach of this Agreement by
another party shall not operate or be construed as the waiver of the same or
another breach on a subsequent occasion, nor shall any delay in exercising any
right, power or privilege hereunder constitute a waiver thereof.

     4.5 SEVERABILITY OF PROVISIONS. If any provision of this Agreement, or the
application of any such provision to any person or circumstance, is invalid or
unenforceable, the remainder of this Agreement, or the application of such
provision to persons or circumstances other than those as to which it is invalid
or unenforceable, shall not be affected by such invalidity or unenforceability,
and the parties hereto expressly authorize any court of competent jurisdiction
to modify any such provision in order that such provision shall be enforced by
such court to the fullest extent permitted by applicable law.

     4.6 COUNTERPARTS; DELIVERY. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one instrument. The
parties acknowledge that delivery of executed counterparts of this Agreement may
be effected by a facsimile transmission or other comparable means, with an
original document to be delivered promptly thereafter via overnight courier.

     4.7 GOVERNING LAW. This Agreement is made and entered into under the laws
of the State of Georgia and the laws of that State applicable to agreements made
and to be performed entirely thereunder (without giving effect to the principles
of conflicts of laws thereof) shall govern the validity and interpretation
hereof and the performance by the parties hereto of their respective duties and
obligations.

     4.8 SECTION HEADINGS. The headings of Sections contained in this Agreement
are for convenience of reference only and do not form a part of this Agreement.

                                        5

<PAGE>

     4.9 ENTIRE AGREEMENT. The making, execution and delivery of this Agreement
by the parties hereto have been induced by no representations, statements,
warranties or agreements other than those herein expressed and expressed in the
Purchase Agreement and the Marketing Agreement. This Agreement, the Purchase
Agreement the Marketing Agreement, and the other written instruments
specifically referred to herein and therein, embody the entire understanding of
the parties and supersede in their entirety all prior communication,
correspondence, and instruments, and there are no further or other agreements or
understandings, written or oral, in effect between the parties relating to the
subject matter hereof.

     4.10 PUBLICITY. The timing and content of any and all public statements,
announcements or other publicity concerning the transactions contemplated herein
shall be mutually agreed upon by Parent and NOVA, which agreement shall not be
unreasonably withheld.

     4.11 DISPUTE RESOLUTION. With the exception of an action by NOVA to enforce
the covenants of Article II hereof, which may be brought in any court of
competent jurisdiction, any controversy, dispute or claim arising out of, or in
connection with, this Agreement must be settled by final and binding arbitration
to be held in Atlanta, Georgia in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association ("AAA") as may be
amended from time to time (the "AAA Rules"). Judgment upon an award rendered by
the arbitrators may be entered in any court: (i) having jurisdiction thereof,
(ii) having jurisdiction over the party against whom enforcement thereof is
sought, or (iii) having jurisdiction over any such party's assets. The award
shall be rendered by a panel of three (3) arbitrators, who shall be selected in
accordance with the AAA Rules.

     4.12 SURVIVAL. The provisions of Sections 2.1 and 2.4 and Article IV shall
survive the termination or expiration of this Agreement.

                         (Signatures begin on next page)

                                        6

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered
this Non-Competition Agreement as of the date first written above.

                                        "BANK":

                                        UMPQUA BANK

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "PARENT":

                                        UMPQUA HOLDINGS CORPORATION

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        "NOVA":

                                        NOVA INFORMATION SYSTEMS, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        7<PAGE>

                                                                    EXHIBIT 10.6

                             BENJAMIN FRANKLIN PLAZA
                                PORTLAND, OREGON

                             OFFICE LEASE AGREEMENT

                                     BETWEEN

         OR-BF PLAZA LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP
                                  ("LANDLORD")

                                       AND

                   UMPQUA BANK, AN OREGON STATE CHARTERED BANK
                                   ("TENANT")

<PAGE>

                             OFFICE LEASE AGREEMENT

      THIS OFFICE LEASE AGREEMENT (the "LEASE") is made and entered into as of
the _____ day of ___________, 2004, by and between OR-BF PLAZA LIMITED
PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP ("LANDLORD") and UMPQUA BANK, AN
OREGON STATE CHARTERED BANK ("TENANT"). The following exhibits and attachments
are incorporated into and made a part of this Lease: EXHIBIT A-1 (Outline and
Location of Suite 100), EXHIBIT A-2 (Outline and Location of Suite 1200),
EXHIBIT A-3 (Outline and Location of First Must-Take Space), EXHIBIT A-4
(Outline and Location of Suite 1900 Offering Space), EXHIBIT A-5 (Outline and
Location of ATM/Night Depository Area), Exhibit B (Expenses and Taxes), EXHIBIT
C (Work Letter), EXHIBIT D (Commencement Letter), EXHIBIT E (Building Rules and
Regulations), EXHIBIT F (Additional Provisions), EXHIBIT F-1 (Location of
Customer Parking Spaces), Exhibit G (Form of Guaranty), EXHIBIT H (Janitorial
Specifications) and EXHIBIT I (Suite 900 Lease Termination Agreement).

1.    BASIC LEASE INFORMATION.

      1.01  "BUILDING" shall mean the building located at One SW Columbia,
            Portland, Oregon 97258, commonly known as Benjamin Franklin Plaza.
            "RENTABLE SQUARE FOOTAGE OF THE BUILDING" is deemed to be 271,573
            square feet.

      1.02  "PREMISES" shall mean the area shown on EXHIBIT A to this Lease. The
            Premises is located on the first (1st) and twelfth (12th) floors and
            known as suites 100 and 1200. If the Premises include one or more
            floors in their entirety, all corridors and restroom facilities
            located on such full floor(s) shall be considered part of the
            Premises. The "RENTABLE SQUARE FOOTAGE OF THE PREMISES" is deemed to
            be 25,184 square feet, as follows: Suite 100 contains 8,020 rentable
            square feet, and Suite 1200 contains 17,164 rentable square feet.
            Landlord and Tenant stipulate and agree that the Rentable Square
            Footage of the Building and the Rentable Square Footage of the
            Premises are correct. The parties acknowledge that pursuant to
            Section 5 of EXHIBIT F attached hereto, Tenant is obligated to
            expand the Premises to include additional space, defined in EXHIBIT
            F as the "First Must Take Space", on or about May 1, 2006.

      1.03  "BASE RENT":

            (a)   Suite 100:

<TABLE>
<CAPTION>
                                             ANNUAL RATE           MONTHLY
               PERIOD                      PER SQUARE FOOT        BASE RENT
------------------------------------       ---------------       ----------
<S>                                        <C>                   <C>
DECEMBER 1, 2004 - JULY 31, 2009                $20.00           $13,366.67
  AUGUST 1, 2009 - NOVEMBER 30, 2010            $23.00           $15,371.67
DECEMBER 1, 2010 - NOVEMBER 30, 2012            $23.92           $15,986.53
DECEMBER 1, 2012 - NOVEMBER 30, 2014            $24.88           $16,628.13
DECEMBER 1, 2014 - NOVEMBER 30, 2016            $25.88           $17,296.47
</TABLE>

            Notwithstanding anything in the schedule set forth in this Section
            1.03(a) to the contrary, so long as Tenant is not in default under
            this Lease, Tenant shall be entitled to an abatement of Base Rent in
            the amount of $13,366.67 per month for 7 consecutive full calendar
            months of the Term, beginning with the 1st full calendar month of
            the Term (the "Suite 100 Base Rent Abatement Period"). The total
            amount of Base Rent abated during the Suite 100 Base Rent Abatement
            Period shall equal $93,566.69 (the "Suite 100 Abated Base Rent"). If
            Tenant defaults at any time during the Term and fails to cure such
            default within any applicable cure period under the Lease, all then
            (i.e., as of the date of the default) unamortized Suite 100 Abated
            Base Rent (assuming amortization of Suite 100 Abated Base Rent over
            the Term on a straight-line basis) shall immediately become due and
            payable. The payment by Tenant of the unamortized Suite 100 Abated
            Base Rent in the event of a default shall not limit or affect any of
            Landlord's other rights, pursuant to this Lease or at law or in
            equity. During the Suite 100 Base Rent Abatement Period, only Base
            Rent shall be abated, and all Suite 100 Additional Rent and other
            costs and charges specified in this Lease shall remain as due and
            payable pursuant to the provisions of this Lease.

                                       1
<PAGE>

            (b)   Suite 1200:

<TABLE>
<CAPTION>
                                                ANNUAL RATE             MONTHLY
               PERIOD                         PER SQUARE FOOT          BASE RENT
------------------------------------          ---------------         ----------
<S>                                           <C>                     <C>
DECEMBER 1, 2004 - NOVEMBER 30, 2006               $22.50             $32,182.50
DECEMBER 1, 2006 - NOVEMBER 30, 2008               $23.40             $33,469.80
DECEMBER 1, 2008 - NOVEMBER 30, 2010               $24.34             $34,814.31
DECEMBER 1, 2010 - NOVEMBER 30, 2012               $25.31             $36,201.74
DECEMBER 1, 2012 - NOVEMBER 30, 2014               $26.32             $37,646.37
DECEMBER 1, 2014 - NOVEMBER 30, 2016               $27.37             $39,148.22
</TABLE>

            Notwithstanding anything in the schedule set forth in this Section
            1.03(b) to the contrary, so long as Tenant is not in default under
            this Lease, Tenant shall be entitled to an abatement of Base Rent in
            the amount of $32,182.50 per month for 6 consecutive full calendar
            months of the Term, beginning with the 1st full calendar month of
            the Term (the "Suite 1200 Base Rent Abatement Period"). The total
            amount of Base Rent abated during the Suite 1200 Base Rent Abatement
            Period shall equal $193,095.00 (the "Suite 1200 Abated Base Rent").
            If Tenant defaults at any time during the Term and fails to cure
            such default within any applicable cure period under the Lease, all
            then (i.e., as of the date of the default) unamortized Suite 1200
            Abated Base Rent (assuming amortization of Suite 1200 Abated Base
            Rent on a straight-line basis over the Term) shall immediately
            become due and payable. The payment by Tenant of the unamortized
            Suite 1200 Abated Base Rent in the event of a default shall not
            limit or affect any of Landlord's other rights, pursuant to this
            Lease or at law or in equity. During the Suite 1200 Base Rent
            Abatement Period, only Base Rent shall be abated, and all Additional
            Rent and other costs and charges specified in this Lease shall
            remain as due and payable pursuant to the provisions of this Lease.

      1.04  "TENANT'S PRO RATA SHARE": 9.2734%.

      1.05  "BASE YEAR" for Taxes (defined in EXHIBIT B): 2005; "BASE YEAR" for
            Expenses (defined in EXHIBIT B): 2005.

      1.06  "TERM": A period of 144 months. The Term shall commence
            (retroactively) on December 1, 2004 (the "COMMENCEMENT DATE") and,
            unless terminated early in accordance with this Lease, end on
            November 30, 2016 (the "TERMINATION DATE").

      1.07  "ALLOWANCE": $30.00 multiplied by the Rentable Square Footage of the
            Premises (inclusive of the First Must-Take Space) per EXHIBIT C
            (Work Letter).

      1.08  "SECURITY DEPOSIT": None.

      1.09  "GUARANTOR(S)": Umpqua Holdings Corporation, an Oregon corporation.
            Concurrent with Tenant's execution and delivery of this Lease,
            Tenant shall cause each Guarantor, if any, to execute and deliver a
            guaranty in favor of Landlord on the form attached hereto as EXHIBIT
            G.

      1.10  "BROKER(S)": Landlord: Doug Bean & Associates.
                         Tenant: Norris Beggs & Simpson.

      1.11  "PERMITTED USE": General office use; provided that, in no event
            shall any portion of the Premises located on the 10th floor of the
            Building be used for the operation of a business offering accounting
            services or consulting services, so long as an existing (as of the
            date of this Lease) lessee's prohibition on accounting services or
            consulting services on the 10th floor of the Building survives.

                                       2
<PAGE>

      1.12  "NOTICE ADDRESS(ES)":

            Landlord:                             Tenant:
            OR-BF Plaza Limited Partnership       Umpqua Bank
            c/o Equity Office Management, L.L.C.  _________________________
            One SW Columbia                       _________________________
            Suite 300                             _________________________
            Portland, Oregon 97258                Attn: ___________________
            Attn:  Property Manager
                                                  With a copy to:

                                                  Umpqua Holdings Corp.,
                                                  200 S.W. Market Street,
                                                  Suite 1900
                                                  Portland, Oregon 97201
                                                  Attn: Daniel Sullivan
                                                        Executive Vice President
                                                        and CFO

            A copy of any notices to Landlord shall be sent to Equity Office,
            One Market, Spear Tower, Suite 600, San Francisco, California 94105,
            Attn: Seattle Regional Counsel.

      1.13  "BUSINESS DAY(S)" are Monday through Friday of each week, exclusive
            of New Year's Day, Memorial Day, Independence Day, Labor Day,
            Thanksgiving Day and Christmas Day ("HOLIDAYS"). Landlord may
            designate as additional Holidays, national or state holidays that
            are commonly recognized by a substantial number of other office
            buildings in the area where the Building is located. "BUILDING
            SERVICE HOURS" are 7:00 A.M. to 6:00 P.M. on Business Days and 8:00
            A.M. to 1:00 P.M. on Saturdays.

      1.14  "LANDLORD WORK" means the work that Landlord is obligated to perform
            in the Premises pursuant to a separate agreement (the "WORK
            LETTER"), attached to this Lease as EXHIBIT C.

      1.15  "PROPERTY" means the Building and the parcel(s) of land on which it
            is located and, the parking facilities and other improvements, if
            any, serving the Building and the parcel(s) of land on which they
            are located.

2.    LEASE GRANT.

      The Premises are hereby leased to Tenant from Landlord, together with the
right to use any portions of the Property that are designated by Landlord for
the common use of tenants and others (the "COMMON AREAS").

3.    ADJUSTMENT OF COMMENCEMENT DATE; POSSESSION.

      3.01 The Landlord Work shall be deemed to be "SUBSTANTIALLY COMPLETE" on
the date that all Landlord Work has been performed, other than any details of
construction, mechanical adjustment or any other similar matter, the
non-completion of which does not materially interfere with Tenant's use of the
Premises. The parties expressly acknowledge that the Commencement Date is
anticipated to occur prior to the Substantial Completion of the Landlord Work or
Tenant's occupancy of the Premises.

      3.02 Subject to Landlord's obligation, if any, to perform Landlord Work,
the Premises are accepted by Tenant in "as is" condition and configuration
without any representations or warranties by Landlord. By taking possession of
the Premises, Tenant agrees that the Premises are in good order and satisfactory
condition. Landlord shall not be liable for a failure to deliver possession of
the Premises or any other space due to the holdover or unlawful possession of
such space by another party, however Landlord shall use reasonable efforts to
obtain possession of the space. The commencement date for the space, in such
event, shall be postponed until the date Landlord delivers possession of the
Premises to Tenant free from occupancy by any party. If Tenant takes possession
of the Premises before the Commencement Date, such possession shall be subject
to the terms and conditions of this Lease and Tenant shall pay Rent (defined in
Section 4.01) to Landlord for each day of possession before the Commencement
Date. However, except for the cost of services requested by Tenant (e.g. freight
elevator usage), Tenant shall not be required to pay Rent for any days of
possession before the Commencement Date during which Tenant, with the approval
of Landlord, is in possession of the Premises for the sole purpose of performing
improvements or installing furniture, equipment or other personal property.

      3.03 Notwithstanding the foregoing, if Landlord has not delivered the
Premises to Tenant for the commencement of Tenant's Initial Alterations (as
described in EXHIBIT C) on or before March 31, 2005 (the "Outside Delivery
Date"), Tenant, as its sole remedy, may terminate this Lease by giving Landlord
written notice of termination on or before the earlier to occur of: (i) 5
Business Days after the Outside Delivery Date; and (ii) the date Landlord so
delivers the Premises to Tenant. In such event, this Lease shall be deemed null
and void and of no further force and effect and Landlord shall promptly refund
any prepaid rent previously advanced by Tenant under this Lease and, so long as
Tenant has not previously

                                       3
<PAGE>

defaulted under any of its obligations under the Work Letter, the parties hereto
shall have no further responsibilities or obligations to each other with respect
to this Lease. The Outside Delivery Date shall be postponed by the number of
days the date of Substantial Completion of the Landlord Work is delayed due to
(i) the acts omissions of Tenant or (ii) events of Force Majeure.
Notwithstanding anything herein to the contrary, if Landlord determines in good
faith that it will be unable to deliver the Premises to Tenant by the Outside
Delivery Date, Landlord shall provide Tenant with written notice (the "Delivery
Date Extension Notice") of such inability, which Delivery Date Extension Notice
shall set forth the date on which Landlord reasonably believes that the date of
delivery will occur. Upon receipt of the Delivery Date Extension Notice, Tenant
shall have the right to terminate this Lease by providing written notice of
termination to Landlord within 5 Business Days after the date of delivery of the
Delivery Date Extension Notice. If Tenant does not terminate this Lease within
such 5 Business Day period, the Outside Delivery Date automatically shall be
amended to be the date set forth in Landlord's Delivery Date Extension Notice.

4.    RENT.

      4.01 Tenant shall pay Landlord, without any setoff or deduction, unless
expressly set forth in this Lease, all Base Rent and Additional Rent due for the
Term (collectively referred to as "RENT"). "ADDITIONAL RENT" means all sums
(exclusive of Base Rent) that Tenant is required to pay Landlord under this
Lease. Tenant shall pay and be liable for all rental, sales and use taxes (but
excluding income taxes), if any, imposed upon or measured by Rent. Base Rent and
recurring monthly charges of Additional Rent shall be due and payable in advance
on the first day of each calendar month without notice or demand, provided that
the installment of Base Rent for the first full calendar month of the Term, and
the first monthly installment of Additional Rent for Expenses and Taxes, shall
be payable upon the execution of this Lease by Tenant. All other items of Rent
shall be due and payable by Tenant on or before 30 days after billing by
Landlord. Rent shall be made payable to the entity, and sent to the address,
Landlord designates and shall be made by good and sufficient check or by other
means acceptable to Landlord. Tenant shall pay Landlord an administration fee
equal to 5% of all past due Rent, provided that Tenant shall be entitled to a
grace period of 5 Business Days for the first 2 late payments of Rent in a
calendar year. In addition, past due Rent shall accrue interest at 12% per
annum. Landlord's acceptance of less than the correct amount of Rent shall be
considered a payment on account of the earliest Rent due. Rent for any partial
month during the Term shall be prorated. No endorsement or statement on a check
or letter accompanying payment shall be considered an accord and satisfaction.
Tenant's covenant to pay Rent is independent of every other covenant in this
Lease.

      4.02 Tenant shall pay Tenant's Pro Rata Share of Taxes and Expenses in
accordance with EXHIBIT B of this Lease.

5.    COMPLIANCE WITH LAWS; USE.

      The Premises shall be used for the Permitted Use and for no other use
whatsoever. Tenant shall comply with all statutes, codes, ordinances, orders,
rules and regulations of any municipal or governmental entity whether in effect
now or later, including the Americans with Disabilities Act ("ADA") ("LAW(S)"),
regarding the occupation of the Premises and the use, condition, configuration
and occupancy of the Premises. In addition, Tenant shall, at its sole cost and
expense, promptly comply with any Laws that relate to the "Base Building"
(defined below), but only to the extent such obligations are triggered by
Tenant's use of the Premises, other than for general office use, or Alterations
or improvements in the Premises performed or requested by Tenant. As of the date
hereof, Landlord has not received any currently applicable notice from any
governmental agencies that the Building is in violation of applicable Laws
(including, without limitation, Title III of the ADA). Except to the extent
properly included in Expenses, Landlord shall be responsible for the cost of
correcting any violations of applicable Laws, including Title III of the ADA,
with respect to the Common Areas of the Building. Notwithstanding the foregoing,
Landlord shall have the right to contest any alleged violation in good faith,
including, without limitation, the right to apply for and obtain a waiver or
deferment of compliance, the right to assert any and all defenses allowed by Law
and the right to appeal any decisions, judgments or rulings to the fullest
extent permitted by Law. Landlord, after the exhaustion of any and all rights to
appeal or contest, will make all repairs, additions, alterations or improvements
necessary to comply with the terms of any final order or judgment. "BASE
BUILDING" shall include the structural portions of the Building, the public
restrooms and the Building mechanical, electrical and plumbing systems and
equipment located in the internal core of the Building on the floor or floors on
which the Premises are located. Tenant shall promptly provide Landlord with
copies of any notices it receives regarding an alleged violation of Law. Tenant
shall comply with the rules and regulations of the Building attached as EXHIBIT
E and such other reasonable rules and regulations adopted by Landlord from time
to time, including rules and regulations for the performance of Alterations
(defined in Section 9).

6.    SECURITY DEPOSIT.

      The Security Deposit, if any, shall be delivered to Landlord upon the
execution of this Lease by Tenant and held by Landlord without liability for
interest (unless required by Law) as security for the performance of Tenant's
obligations. The Security Deposit is not an advance payment of Rent or a

                                       4
<PAGE>

measure of damages. Landlord may use all or a portion of the Security Deposit to
satisfy past due Rent or to cure any Default (defined in Section 18) by Tenant.
If Landlord uses any portion of the Security Deposit, Tenant shall, within 5
days after demand, restore the Security Deposit to its original amount. Landlord
shall return any unapplied portion of the Security Deposit to Tenant within 45
days after the later to occur of: (a) determination of the final Rent due from
Tenant; or (b) the later to occur of the Termination Date or the date Tenant
surrenders the Premises to Landlord in compliance with Section 25. Landlord may
assign the Security Deposit to a successor or transferee and, following the
assignment, Landlord shall have no further liability for the return of the
Security Deposit. Landlord shall not be required to keep the Security Deposit
separate from its other accounts.

7.    BUILDING SERVICES.

      7.01 Landlord shall furnish Tenant with the following services:

            (a) water for use in the Base Building lavatories;

            (b) customary heat and air conditioning in season during Building
Service Hours. Tenant shall have the right to receive HVAC service during hours
other than Building Service Hours by paying Landlord's then standard charge for
additional HVAC service and providing such prior notice as is reasonably
specified by Landlord; as of the date hereof, Landlord's charge for after hours
HVAC service is $42.50 per hour, per floor, subject to change from time to time;
any such increase in Landlord's charge for after-hours HVAC shall be reasonably
consistent with the charges for similar services incorporated by owners of other
class "A" buildings in Portland, Oregon for after-hours HVAC service and shall
be based upon (x) the actual cost incurred by Landlord to supply such
after-hours HVAC on an hourly basis and (y) increased wear and tear and
depreciation of equipment to provide such after-hours HVAC, as reasonably
estimated by Landlord in good faith;

            (c) standard janitorial service on Business Days in accordance with
the cleaning specifications attached hereto as EXHIBIT H, or such other
reasonably comparable specifications designated by Landlord from time to time;

            (d) Elevator service;

            (e) Electricity in accordance with the terms and conditions in
Section 7.02;

            (f) Access to the Building for Tenant and its employees 24 hours per
day/7 days per week, subject to the terms of this Lease and such security or
monitoring systems as Landlord may reasonably impose, including, without
limitation, sign-in procedures and/or presentation of identification cards; and

            (g) such other services as Landlord reasonably determines are
necessary or appropriate for the Property. Subject to Force Majeure, the
interruption described in Section 7.03 below, and the damage described in
Article 16, and to the provisions of Section 7.02 below regarding excessive
electrical consumption, electrical service, lighting, water and elevator service
will be available 24 hours per day, 7 days per week. Landlord additionally will
provide for garbage and recycling pick-up as required by the City of Portland.

      7.02 Electricity used by Tenant in the Premises shall, at Landlord's
option, be paid for by Tenant either: (a) through inclusion in Expenses (except
as provided for excess usage); (b) by a separate charge payable by Tenant to
Landlord; or (c) by separate charge billed by the applicable utility company and
payable directly by Tenant. Without the consent of Landlord, Tenant's use of
electrical service shall not exceed, either in voltage, rated capacity, use
beyond Building Service Hours or overall load, that which Landlord reasonably
deems to be standard for the Building. For purposes hereof, the "electrical
standard" for the Building is an overall load of 5 watts per square foot of
usable floor area for all building standard overhead lighting located within the
Premises which requires a voltage of 480/277 volts and all equipment located and
operated within the Premises which requires a voltage of 120/208 volts single
phase or less, it being understood that electricity required to operate the Base
Building HVAC system is not included within or deducted from such 5 watts per
square foot. Landlord shall have the right to measure electrical usage by
commonly accepted methods. If it is determined that Tenant is using excess
electricity, Tenant shall pay Landlord for the cost of such excess electrical
usage as Additional Rent.

      7.03 Landlord's failure to furnish, or any interruption, diminishment or
termination of services due to the application of Laws, the failure of any
equipment, the performance of repairs, improvements or alterations, utility
interruptions or the occurrence of an event of Force Majeure (defined in Section
26.03) (collectively a "SERVICE FAILURE") shall not render Landlord liable to
Tenant, constitute a constructive eviction of Tenant, give rise to an abatement
of Rent, nor relieve Tenant from the obligation to fulfill any covenant or
agreement. However, if the Premises, or a material portion of the Premises, are
made untenantable for a period in excess of 3 consecutive Business Days as a
result of a Service Failure that is reasonably within the control of Landlord to
correct, then Tenant, as its sole remedy, shall be entitled to receive an
abatement of Rent payable hereunder during the period beginning on the 4th
consecutive Business Day of the Service Failure and ending on the day the
service has been restored. If the entire

                                       5
<PAGE>

Premises have not been rendered untenantable by the Service Failure, the amount
of abatement shall be equitably prorated.

8.    LEASEHOLD IMPROVEMENTS.

      All improvements in and to the Premises, including any Alterations
(collectively, "LEASEHOLD IMPROVEMENTS") shall remain upon the Premises at the
end of the Term without compensation to Tenant; provided, however, that trade
fixtures of Tenant which are affixed to the Premises may be removed by Tenant on
or before the end of the Term, so long as Tenant, at Tenant's sole cost, repairs
any damage caused by the removal of such trade fixtures to Landlord's reasonable
satisfaction. Landlord, however, by written notice to Tenant at least 30 days
prior to the Termination Date, may require Tenant, at its expense, to remove (a)
any Cable (defined in Section 9.01) installed by or for the benefit of Tenant,
and (b) any Landlord Work or Alterations that, in Landlord's reasonable
judgment, are of a nature that would require removal and repair costs that are
materially in excess of the removal and repair costs associated with standard
office improvements (collectively referred to as "REQUIRED REMOVABLES").
However, it is agreed that Required Removables shall not include any usual
office improvements such as gypsum board, partitions, ceiling grids and tiles,
fluorescent lighting panels, Building standard doors and non-glued down
carpeting. Required Removables shall include, without limitation, internal
stairways, raised floors, personal baths and showers, vaults, the ATM (defined
in EXHIBIT F), rolling file systems and structural alterations and
modifications. The designated Required Removables shall be removed by Tenant
before the Termination Date. Tenant shall repair damage caused by the
installation or removal of Required Removables. If Tenant fails to perform its
obligations in a timely manner, Landlord may perform such work at Tenant's
expense. Provided that Tenant, in Tenant's request for approval of any Leasehold
Improvements, expressly requests that Landlord designate whether any of the
proposed Leasehold Improvement will constitute Required Removables, Landlord
will advise Tenant in writing as to which portions, if any, of the subject
Leasehold Improvements are Required Removables concurrently with Landlord's
approval of proposed plans and specifications describing any such Leasehold
Improvements.

9.    REPAIRS AND ALTERATIONS.

      9.01 Tenant shall promptly provide Landlord with notice of any such
conditions. Tenant shall, at its sole cost and expense, perform all maintenance
and repairs to the Premises that are not Landlord's express responsibility under
this Lease, and keep the Premises in good condition and repair, reasonable wear
and tear excepted. Tenant's repair and maintenance obligations include, without
limitation, repairs to: (a) floor covering; (b) interior partitions; (c) doors
(including exterior doors); (d) the interior side of demising walls; (e)
electronic, phone and data cabling and related equipment that is installed by or
for the exclusive benefit of Tenant (collectively, "CABLE"); (f) supplemental
air conditioning units, kitchens, including hot water heaters, plumbing, and
similar facilities exclusively serving Tenant; and (g) Alterations. For
avoidance of doubt, Tenant is not responsible for the day to day maintenance of
ductwork, cabling and utility lines above the dropped ceiling in the Premises
which ductwork, cabling and utility lines serve the Building and/or Common Areas
generally, as opposed to the Premises specifically. To the extent Landlord is
not reimbursed by insurance proceeds (so long as such lack of reimbursement is
not due to Landlord's failure to maintain the insurance coverage required under
Article 14 below), Tenant shall reimburse Landlord for the cost of repairing
damage to the Building caused by the acts of Tenant, Tenant Related Parties and
their respective contractors and vendors. If Tenant fails to commence any
repairs to the Premises for more than 15 days after notice from Landlord
(although notice shall not be required in an emergency), and thereafter to
diligently prosecute such repairs to completion, Landlord may make the repairs,
and Tenant shall pay the reasonable cost of the repairs, together with an
administrative charge in an amount equal to 5% of the cost of the repairs.

      9.02 Landlord shall keep and maintain in good repair and working order,
commensurate with the maintenance levels of other "Class A" office buildings in
Portland, Oregon, the: (a) structural elements of the Building; (b) mechanical
(including HVAC), electrical, plumbing and fire/life safety systems serving the
Building in general (including (x) utility lines to the point of entry to the
Premises, regardless of whether such utility lines serve the Premises
exclusively); and (y) ductwork and utility lines within the Premises which serve
the Building generally); (c) Common Areas; (d) roof of the Building; (e)
exterior windows of the Building; and (f) elevators serving the Building.
Landlord shall promptly make repairs for which Landlord is responsible.

      9.03 Tenant shall not make alterations, repairs, additions or improvements
or install any Cable (collectively referred to as "ALTERATIONS") without first
obtaining the written consent of Landlord in each instance, which consent shall
not be unreasonably withheld or delayed. However, Landlord's consent shall not
be required for any Alteration that satisfies all of the following criteria (a
"COSMETIC ALTERATION"): (a) is of a cosmetic nature such as painting,
wallpapering, hanging pictures and installing carpeting; (b) is not visible from
the exterior of the Premises or Building; (c) will not affect the Base Building;
and (d) does not require work to be performed inside the walls or above the
ceiling of the Premises. Cosmetic Alterations shall be subject to all the other
provisions of this Section 9.03. Prior to starting work, Tenant shall furnish
Landlord with plans and specifications; names of contractors reasonably
acceptable to Landlord (provided that Landlord may designate specific
contractors with

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<PAGE>

respect to Base Building); required permits and approvals; evidence of
contractor's and subcontractor's insurance in amounts reasonably required by
Landlord and naming Landlord as an additional insured; and any security for
performance in amounts reasonably required by Landlord. Changes to the plans and
specifications must also be submitted to Landlord for its approval. Alterations
shall be constructed in a good and workmanlike manner using materials of a
quality reasonably approved by Landlord. Tenant shall reimburse Landlord for any
sums reasonably paid by Landlord for third party examination of Tenant's plans
for non-Cosmetic Alterations. In addition, Tenant shall pay Landlord a fee for
Landlord's oversight and coordination of any non-Cosmetic Alterations equal to
5% of the cost of the Alterations. Upon completion, Tenant shall furnish
"as-built" plans for non-Cosmetic Alterations, completion affidavits and full
and final waivers of lien. Landlord's approval of an Alteration shall not be
deemed a representation by Landlord that the Alteration complies with Law.

10.   ENTRY BY LANDLORD.

      10.01 Landlord may enter the Premises to inspect, show or clean the
Premises or to perform or facilitate the performance of repairs, alterations or
additions to the Premises or any portion of the Building. Except in emergencies
or to provide Building services, Landlord shall provide Tenant with reasonable
prior notice of entry (which notice may be telephonic except in the case of
scheduled, non-emergency repairs or inspections, in which event written notice
will be provided) and shall use reasonable efforts to minimize any interference
with Tenant's use of the Premises, including using reasonable efforts to ensure
that Landlord's construction activities (including scaffolding) do not block
access to the Premises or Tenant's signage. If reasonably necessary, Landlord
may temporarily close all or a portion of the Premises to perform repairs,
alterations and additions. However, except in emergencies, Landlord will not
close the Premises if the work can reasonably be completed on weekends and after
Building Service Hours. Entry by Landlord shall not constitute a constructive
eviction or entitle Tenant to an abatement or reduction of Rent. Notwithstanding
the foregoing, if Landlord temporarily closes the Premises as provided above for
a period in excess of 3 consecutive Business Days, Tenant, as its sole remedy,
shall be entitled to receive a per diem abatement of Base Rent during the period
beginning on the 4th consecutive Business Day of closure and ending on the date
on which the Premises are returned to Tenant in a tenantable condition. Tenant,
however, shall not be entitled to an abatement if the repairs, alterations
and/or additions to be performed are required as a result of the acts or
omissions of Tenant, its agents, employees or contractors, including, without
limitation, a default by Tenant in its maintenance and repair obligations under
the Lease.

      10.02 Notwithstanding the provisions of Section 10.01 above, Tenant, at
its own expense, may provide its own locks to an area within the Premises such
as vaults and data processing rooms ("Secured Area"). Tenant need not furnish
Landlord with a key (unless the fire department requires that a key be furnished
for the lock box maintained by Landlord for fire department access, in which
event Tenant will furnish to Landlord such key or keys as may be so required,
which Landlord will retain in the Building's lock box solely for fire department
use), but upon the Termination Date or earlier expiration or termination of
Tenant's right to possession, Tenant shall surrender all such keys to Landlord.
If Landlord must gain access to a Secured Area in a non-emergency situation,
Landlord shall contact Tenant, and Landlord and Tenant shall arrange a mutually
agreed upon time for Landlord to have such access. Landlord shall comply with
all reasonable security measures pertaining to the Secured Area. If Landlord
determines in its sole discretion that an emergency in the Building or the
Premises, including, without limitation, a suspected fire or flood, requires
Landlord to gain access to the Secured Area, Tenant hereby authorizes Landlord
to forcibly enter the Secured Area. In such event, Landlord shall have no
liability whatsoever to Tenant, and Tenant shall pay all reasonable expenses
incurred by Landlord in repairing or reconstructing any entrance, corridor, door
or other portions of the Premises damaged as a result of a forcible entry by
Landlord. Landlord shall have no obligation to provide either janitorial service
or cleaning in any Secured Area.

11.   ASSIGNMENT AND SUBLETTING.

      11.01 Except in connection with a Permitted Transfer (defined in Section
11.04), Tenant shall not assign, sublease, transfer or encumber any interest in
this Lease or allow any third party to use any portion of the Premises
(collectively or individually, a "TRANSFER") without the prior written consent
of Landlord, which consent shall not be unreasonably withheld, conditioned or
delayed if Landlord does not exercise its recapture rights under Section 11.02.
If the entity which controls the voting shares/rights of Tenant changes at any
time, such change of ownership or control shall constitute a Transfer unless
Tenant is an entity whose outstanding stock is listed on a recognized securities
exchange or if at least 80% of its voting stock is owned by another entity, the
voting stock of which is so listed. Any attempted Transfer in violation of this
Section is voidable by Landlord. In no event shall any Transfer, including a
Permitted Transfer, release or relieve Tenant from any obligation under this
Lease.

      11.02 Tenant shall provide Landlord with financial statements for the
proposed transferee, a fully executed copy of the proposed assignment, sublease
or other Transfer documentation and such other information as Landlord may
reasonably request. Within 15 Business Days after receipt of the required
information and documentation, Landlord shall either: (a) consent to the
Transfer by execution of a consent agreement in a form reasonably designated by
Landlord; (b) reasonably refuse to consent to the Transfer in writing; or (c) in
the event of an assignment of this Lease or a subletting of any portion of the

                                       7
<PAGE>

Premises used as retail space (except, in each case, with respect to a Permitted
Transfer), recapture the portion of the Premises that Tenant is proposing to
Transfer. If Landlord exercises its right to recapture, this Lease shall
automatically be amended (or terminated if the entire Premises is being assigned
or sublet) to delete the applicable portion of the Premises effective on the
proposed effective date of the Transfer. Tenant shall pay Landlord a review fee
of $1,500.00 for Landlord's review of any Permitted Transfer or requested
Transfer.

      11.03 Tenant shall pay Landlord 50% of all rent and other consideration
which Tenant receives as a result of a Transfer that is in excess of the Rent
payable to Landlord for the portion of the Premises and Term covered by the
Transfer. Tenant shall pay Landlord for Landlord's share of the excess within 30
days after Tenant's receipt of the excess. Tenant may deduct from the excess, on
a straight-line basis, all reasonable and customary expenses directly incurred
by Tenant attributable to the Transfer. If Tenant is in Default, Landlord may
require that all sublease payments be made directly to Landlord, in which case
Tenant shall receive a credit against Rent in the amount of Tenant's share of
payments received by Landlord.

      11.04 Tenant may assign this Lease to a successor to Tenant by purchase,
merger, consolidation or reorganization (an "OWNERSHIP CHANGE") or assign this
Lease or sublet all or a portion of the Premises to an Affiliate without the
consent of Landlord, provided that all of the following conditions are satisfied
(a "PERMITTED TRANSFER"): (a) Tenant is not in Default; (b) in the event of an
Ownership Change, Tenant's successor shall own substantially all of the assets
of Tenant and have a net worth which is equal to or greater than the Minimum Net
Worth (defined below); (c) the use to which the transferee under the Permitted
Transfer would put Suite 150 or any retail space in the Premises is the
Permitted Use applicable to Suite 150 or any such retail space; and (d) Tenant
shall give Landlord written notice at least 15 Business Days prior to the
effective date of the Permitted Transfer. Tenant's notice to Landlord shall
include information and documentation evidencing the Permitted Transfer and
showing that each of the above conditions has been satisfied. If requested by
Landlord, Tenant's successor shall sign a commercially reasonable form of
assumption agreement. "AFFILIATE" shall mean an entity controlled by,
controlling or under common control with Tenant. As used herein, the "Minimum
Net Worth" shall initially mean $100,000,000.00. Notwithstanding the foregoing
to the contrary, the Minimum Net Worth shall be subject to adjustment, as of
each anniversary of the Commencement Date (each an "Adjustment Date") to equal
the initial Minimum Net Worth, described above, increased by the percentage
increase in the CPI (defined below) most recently issued as of the date
immediately preceding the applicable Adjustment Date (an "Adjustment Index")
over the CPI issued most recently prior to the Commencement Date (the "Base
CPI"). For example, if the Base CPI is 100, and the Adjustment CPI applicable to
the third (3rd) anniversary of the Commencement Date is 114, then the Minimum
Net Worth applicable to the fourth (4th) year of the Term shall be the Initial
Minimum Net Worth, increased by fourteen percent (14%). As used herein, the
"CPI" shall mean the Consumer Price Index, for All Urban Consumers (CPI-U), U.S.
City Average, 1982-84=100; if said index is no longer published, Landlord will
have the right to select, in good faith, a suitable replacement index.

12.   LIENS.

      Tenant shall not permit mechanics' or other liens to be placed upon the
Property, Premises or Tenant's leasehold interest in connection with any work or
service done or purportedly done by or for the benefit of Tenant or its
transferees. Tenant shall give Landlord notice at least 15 days prior to the
commencement of any work in the Premises to afford Landlord the opportunity,
where applicable, to post and record notices of non-responsibility. Tenant,
within 10 days of notice from Landlord, shall fully discharge any lien by
settlement, by bonding or by insuring over the lien in the manner prescribed by
the applicable lien Law. If Tenant fails to do so, Landlord may bond, insure
over or otherwise discharge the lien. Tenant shall reimburse Landlord for any
amount paid by Landlord, including, without limitation, reasonable attorneys'
fees.

13.   INDEMNITY AND WAIVER OF CLAIMS.

      Tenant hereby waives all claims against and releases Landlord and its
trustees, members, principals, beneficiaries, partners, officers, directors,
employees, Mortgagees (defined in Section 23) and agents (the "LANDLORD RELATED
PARTIES") from all claims for any injury to or death of persons, damage to
property or business loss in any manner related to (a) Force Majeure, (b) acts
of third parties, (c) the bursting or leaking of any tank, water closet, drain
or other pipe, (d) the inadequacy or failure of any security services, personnel
or equipment, or (e) any matter not within the reasonable control of Landlord.
Notwithstanding the foregoing, except as provided in Section 15 to the contrary,
Tenant shall not be required to waive any claims against Landlord (other than
for loss or damage to Tenant's business) where such loss or damage is due to the
negligence or willful misconduct of Landlord or any Landlord Related Parties.
Nothing herein shall be construed as to diminish the repair and maintenance
obligations of Landlord contained elsewhere in this Lease. Except to the extent
caused by the negligence or willful misconduct of Landlord or any Landlord
Related Parties, Tenant shall indemnify, defend and hold Landlord and Landlord
Related Parties harmless against and from all liabilities, obligations, damages,
penalties, claims, actions, costs, charges and expenses, including, without
limitation, reasonable attorneys' fees and other professional fees (if and to
the extent permitted by Law) (collectively referred to as "LOSSES"), which may
be imposed upon, incurred by or asserted against

                                       8
<PAGE>

Landlord or any of the Landlord Related Parties by any third party and arising
out of or in connection with any damage or injury occurring in the Premises or
any acts or omissions (including violations of Law) of Tenant, the Tenant
Related Parties or any of Tenant's transferees, contractors or licensees. Except
to the extent caused by the negligence or willful misconduct of Tenant or any
Tenant Related Parties, Landlord shall indemnify, defend and hold Tenant, its
trustees, members, principals, beneficiaries, partners, officers, directors,
employees and agents ("TENANT RELATED PARTIES") harmless against and from all
Losses which may be imposed upon, incurred by or asserted against Tenant or any
of the Tenant Related Parties by any third party and arising out of or in
connection with the acts or omissions (including violations of Law) of Landlord
or the Landlord Related Parties.

14.   INSURANCE.

      Tenant shall maintain the following insurance ("TENANT'S INSURANCE"): (a)
Commercial General Liability Insurance applicable to the Premises and its
appurtenances providing, on an occurrence basis, a minimum combined single limit
of $2,000,000.00; (b) Property/Business Interruption Insurance written on an All
Risk or Special Perils form, with coverage for broad form water damage including
earthquake sprinkler leakage, at replacement cost value and with a replacement
cost endorsement covering all of Tenant's business and trade fixtures,
equipment, movable partitions, furniture, merchandise and other personal
property within the Premises ("TENANT'S PROPERTY") and any Leasehold
Improvements performed by or for the benefit of Tenant; (c) Workers'
Compensation Insurance in amounts required by Law; and (d) Employers Liability
Coverage of at least $1,000,000.00 per occurrence. Any company writing Tenant's
Insurance shall have an A.M. Best rating of not less than A-VIII. All Commercial
General Liability Insurance policies shall name as additional insureds Landlord
(or its successors and assignees), the managing agent for the Building and any
Mortgagee, and their respective successors and assigns, as the interests of such
designees shall appear. All policies of Tenant's Insurance shall contain
endorsements that the insurer(s) shall give Landlord and its designees at least
30 days' advance written notice of any cancellation, termination, material
change or lapse of insurance. Tenant shall provide Landlord with a certificate
of insurance evidencing Tenant's Insurance prior to the earlier to occur of the
Commencement Date or the date Tenant is provided with possession of the
Premises, and thereafter as necessary to assure that Landlord always has current
certificates evidencing Tenant's Insurance. Landlord shall maintain the
following insurance ("Landlord's Insurance"), the premiums of which will be
included in Expenses: (1) Commercial General Liability insurance applicable to
the Property, Building and Common Areas providing, on an occurrence basis, a
minimum combined single limit of at least $2,000,000.00; (2) All Risk Property
Insurance on the Building at replacement cost value; (3) Worker's Compensation
insurance as required by the state in which the Building is located and in
amounts as may be required by applicable statute; and (4) Employers Liability
Coverage of at least $1,000,000.00 per occurrence.

15.   SUBROGATION.

      Landlord and Tenant hereby waive and shall cause their respective
insurance carriers to waive any and all rights of recovery, claims, actions or
causes of action against the other for any loss or damage with respect to
Tenant's Property, Leasehold Improvements, the Building, the Premises, or any
contents thereof, including rights, claims, actions and causes of action based
on negligence, which loss or damage is (or would have been, had the insurance
required by this Lease been carried) covered by insurance.

16.   CASUALTY DAMAGE.

      16.01 If all or any portion of the Premises becomes untenantable by fire
or other casualty to the Premises (collectively a "CASUALTY"), Landlord, with
reasonable promptness, shall cause a general contractor selected by Landlord to
provide Landlord and Tenant with a written estimate of the amount of time
required using standard working methods to Substantially Complete the repair and
restoration of the Premises (excluding any Leasehold Improvements, the repair of
which will be carried by Tenant) and any Common Areas necessary to provide
access to the Premises ("COMPLETION ESTIMATE"). If the Completion Estimate
indicates that the Premises or any Common Areas necessary to provide access to
the Premises cannot be made tenantable within 270 days from the date of
casualty, then either party shall have the right to terminate this Lease upon
written notice to the other within 10 days after receipt of the Completion
Estimate; if the ground floor retail portion of the Premises (i.e., Suite 100
and, after the expiration of the Suite 150 Lease (as defined in EXHIBIT F),
Suite 150 (as defined in EXHIBIT F) is the only portion of the Premises that is
affected by a Casualty but, pursuant to the Completion Estimate, the damage
cannot be repaired within 270 days following the date of Casualty, Tenant will
have the right to terminate this Lease with respect to the ground floor retail
portion of the Premises only, by written notice delivered in accordance with the
preceding sentence. If Tenant so terminates this Lease with respect to the
ground floor portion of the Premises, Landlord will promptly prepare an
amendment to this Lease removing the ground floor of the Premises from the
Premises, and the parties will mutually execute such amendment. Tenant, however,
shall not have any right to terminate this Lease if the Casualty was caused by
the gross negligence or intentional misconduct of Tenant or any Tenant Related
Parties. In addition, Landlord, by notice to Tenant within 90 days after the
date of the Casualty, shall have the right to terminate this Lease if: (1) the
Premises have been materially damaged and there is less than 2

                                       9
<PAGE>

years of the Term remaining on the date of the Casualty; (2) any Mortgagee
requires that the insurance proceeds be applied to the payment of the mortgage
debt; or (3) a material uninsured loss to the Building occurs (Landlord's
failure to maintain the insurance coverage required hereunder cannot be used as
a basis for establishing an uninsured loss). Landlord's termination of this
Lease pursuant to this Section 16.01 will be conditioned on Landlord similarly
terminating the leases of all Building tenants (x) who are similarly affected by
such damage and (y) pursuant to whose leases Landlord has a termination right
substantially similar to the termination right set forth herein. Notwithstanding
the foregoing to the contrary, if Landlord elects to terminate this Lease
pursuant to clause (1) above, and Tenant, within ten (10) Business Days
following delivery of Landlord's termination notice, delivers an Initial Renewal
Notice pursuant to Section 3 or 4 of EXHIBIT F attached hereto (and provided
Tenant is not precluded from exercising the applicable Renewal Option pursuant
to the provisions of Section 3.A or 4.A of EXHIBIT F [the restrictions on early
notice provided in Sections 3.A.(1) and 4.A.(1) of EXHIBIT F being waived solely
in the circumstances described in this sentence], Landlord's exercise of the
right to terminate this Lease pursuant to clause (1) above will be null and
void; however, (x) the foregoing will not preclude Landlord from exercising any
other termination option described in this Section 16.01 and (y) if Tenant's
exercise of any Renewal Option as described herein is subsequently rendered null
and void as described in the final sentence of Section 3.C or 4.C of EXHIBIT F,
Landlord will once again have the right to terminate this Lease.

      16.02 If this Lease is not terminated, Landlord shall promptly and
diligently, subject to reasonable delays for insurance adjustment or other
matters beyond Landlord's reasonable control, restore the Premises (excluding
Leasehold Improvements) and Common Areas. Such restoration shall be to
substantially the same condition that existed prior to the Casualty and prior to
the installation of any Leasehold Improvements, except for modifications
required by Law or any other modifications to the Common Areas deemed desirable
by Landlord. Landlord shall not be liable for any inconvenience to Tenant, or
injury to Tenant's business resulting in any way from the Casualty or the repair
thereof. Provided that Tenant is not in Default, during any period of time prior
to the completion of Landlord's repair obligations as set forth herein, that all
or a material portion of the Premises is rendered untenantable as a result of a
Casualty, the Rent shall abate for the portion of the Premises that is
untenantable and not used by Tenant.

17.   CONDEMNATION.

      Either party may terminate this Lease if any material part of the Premises
is taken or condemned for any public or quasi-public use under Law, by eminent
domain or private purchase in lieu thereof (a "TAKING"). Additionally,
Landlord's termination of this Lease pursuant to this Section 17.01 will be
conditioned on Landlord similarly terminating the leases of all Building tenants
(i) who are similarly affected by such Taking and (ii) pursuant to whose leases
Landlord has a termination right substantially similar to the termination right
set forth herein. Landlord shall also have the right to terminate this Lease if
there is a Taking of any portion of the Building or Property which would have a
material adverse effect on Landlord's ability to profitably operate the
remainder of the Building. The terminating party shall provide written notice of
termination to the other party within 45 days after it first receives notice of
the Taking. The termination shall be effective on the date the physical taking
occurs. If this Lease is not terminated, Base Rent and Tenant's Pro Rata Share
shall be appropriately adjusted to account for (x) any reduction in the square
footage of the Premises which is available for Tenant's use during any period of
repair or reconstruction necessitated by such Taking and (y) any reduction in
the square footage of the Building or Premises. All compensation awarded for a
Taking shall be the property of Landlord. The right to receive compensation or
proceeds are expressly waived by Tenant, however, Tenant may file a separate
claim for Tenant's Property and Tenant's reasonable relocation expenses,
provided the filing of the claim does not diminish the amount of Landlord's
award. If only a part of the Premises is subject to a Taking and this Lease is
not terminated, Landlord, with reasonable diligence, will restore the remaining
portion of the Premises as nearly as practicable to the condition immediately
prior to the Taking.

18.   EVENTS OF DEFAULT.

      Each of the following occurrences shall be a "DEFAULT": (a) Tenant's
failure to pay any portion of Rent when due, if the failure continues for 5
Business Days after written notice to Tenant ("MONETARY DEFAULT"); (b) Tenant's
failure (other than a Monetary Default) to comply with any term, provision,
condition or covenant of this Lease, if the failure is not cured within 20 days
after written notice to Tenant provided, however, if Tenant's failure to comply
cannot reasonably be cured within 20 days, Tenant shall be allowed additional
time (not to exceed 120 days) as is reasonably necessary to cure the failure so
long as Tenant begins the cure within 10 days and diligently pursues the cure to
completion; (c) Tenant or any Guarantor becomes insolvent, makes a transfer in
fraud of creditors, makes an assignment for the benefit of creditors, admits in
writing its inability to pay its debts when due or forfeits or loses its right
to conduct business and does not restore its right to do business within 10 days
following such loss; (d) the leasehold estate is taken by process or operation
of Law; (e) in the case of any ground floor or retail portion of the Premises,
Tenant does not take possession of or abandons or vacates all or any portion of
the ground floor or retail portion of the Premises located on the ground floor
(unless associated with the performance of Alterations therein); or (f) Tenant
is in default beyond any notice and cure period under

                                      10
<PAGE>

any other lease or agreement with Landlord at the Building or Property. If
Landlord provides Tenant with notice of Tenant's failure to comply with the same
specific provision of this Lease on 3 separate occasions during any 12 month
period, Tenant's subsequent violation of such provision shall, at Landlord's
option, be an incurable Default by Tenant. All notices sent under this Section
shall be in satisfaction of, and not in addition to, notice required by Law.

19.   REMEDIES.

      19.01 Upon Default, Landlord shall have the right to pursue any one or
more of the following remedies:

            (a) Terminate this Lease, in which case Tenant shall immediately
      surrender the Premises to Landlord. If Tenant fails to surrender the
      Premises, Landlord, in compliance with Law, may enter upon and take
      possession of the Premises and remove Tenant, Tenant's Property and any
      party occupying the Premises. Tenant shall pay Landlord, on demand, all
      past due Rent and other losses and damages Landlord suffers as a result of
      Tenant's Default, including, without limitation, all Costs of Reletting
      (defined below) and any deficiency that may arise from reletting or the
      failure to relet the Premises. "COSTS OF RELETTING" shall include all
      reasonable costs and expenses incurred by Landlord in reletting or
      attempting to relet the Premises, including, without limitation, legal
      fees, brokerage commissions, the cost of alterations and the value of
      other concessions or allowances granted to a new tenant. Notwithstanding
      the above, if Landlord relets the Premises for a term (the "Relet Term")
      that extends past the Termination Date of this Lease (without
      consideration of any earlier termination pursuant to this Article 19), the
      Costs of Reletting which may be included in Landlord's damages under this
      Lease shall be limited to a prorated portion of the Costs of Reletting,
      based on the percentage that the length of the Term remaining on the date
      Landlord terminates this Lease or Tenant's right to possession bears to
      the length of the Relet Term. For example, if there are 2 years left on
      the Term at the time that Landlord terminates possession and, prior to the
      expiration of the 2 year period, Landlord enters into a lease with a Relet
      Term of 10 years with a new tenant, then only 20% of the Costs of
      Reletting shall be included when determining Landlord's damages.

            (b) Terminate Tenant's right to possession of the Premises and, in
      compliance with Law, remove Tenant, Tenant's Property and any parties
      occupying the Premises. Landlord may (but shall not be obligated to) relet
      all or any part of the Premises, without notice to Tenant, for such period
      of time and on such terms and conditions (which may include concessions,
      free rent and work allowances) as Landlord in its absolute discretion
      shall determine. Landlord may collect and receive all rents and other
      income from the reletting. Tenant shall pay Landlord on demand all past
      due Rent, all Costs of Reletting and any deficiency arising from the
      reletting or failure to relet the Premises. The re-entry or taking of
      possession of the Premises shall not be construed as an election by
      Landlord to terminate this Lease.

      19.02 In lieu of calculating damages under Section 19.01, Landlord may
elect to receive as damages the sum of (a) all Rent accrued through the date of
termination of this Lease or Tenant's right to possession, and (b) an amount
equal to the total Rent that Tenant would have been required to pay for the
remainder of the Term discounted (using the discount rate of the Federal Reserve
Bank of San Francisco at the time of the event, plus 1%) to present value, minus
the then present fair rental value of the Premises for the remainder of the
Term, similarly discounted, after deducting all anticipated commercially
reasonable Costs of Reletting. If Tenant is in Default of any of its
non-monetary obligations under the Lease, Landlord shall have the right to
perform such obligations. Tenant shall reimburse Landlord for the cost of such
performance upon demand together with an administrative charge equal to 5% of
the cost of the work performed by Landlord. The repossession or re-entering of
all or any part of the Premises shall not relieve Tenant of its liabilities and
obligations under this Lease. No right or remedy of Landlord shall be exclusive
of any other right or remedy. Each right and remedy shall be cumulative and in
addition to any other right and remedy now or subsequently available to Landlord
at Law or in equity.

      19.03 Landlord agrees to use reasonable efforts to mitigate damages,
provided that those efforts shall not require Landlord to relet the Premises in
preference to any other space in the Building or to relet the Premises to any
party that Landlord could reasonably reject as a transferee pursuant to Section
11.

20.   LIMITATION OF LIABILITY.

      NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS LEASE, THE
LIABILITY OF LANDLORD (AND OF ANY SUCCESSOR LANDLORD) SHALL BE LIMITED TO THE
LESSER OF (A) THE INTEREST OF LANDLORD IN THE PROPERTY, OR (B) THE EQUITY
INTEREST LANDLORD WOULD HAVE IN THE PROPERTY IF THE PROPERTY WERE ENCUMBERED BY
THIRD PARTY DEBT IN AN AMOUNT EQUAL TO 70% OF THE VALUE OF THE PROPERTY. TENANT
SHALL LOOK SOLELY TO LANDLORD'S INTEREST IN THE PROPERTY FOR THE RECOVERY OF ANY
JUDGMENT OR AWARD AGAINST LANDLORD OR ANY LANDLORD RELATED PARTY. NEITHER
LANDLORD NOR ANY LANDLORD RELATED PARTY SHALL BE

                                      11
<PAGE>

PERSONALLY LIABLE FOR ANY JUDGMENT OR DEFICIENCY, AND IN NO EVENT SHALL LANDLORD
OR ANY LANDLORD RELATED PARTY BE LIABLE TO TENANT FOR ANY LOST PROFIT, DAMAGE TO
OR LOSS OF BUSINESS OR ANY FORM OF SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGE.
BEFORE FILING SUIT FOR AN ALLEGED DEFAULT BY LANDLORD, TENANT SHALL GIVE
LANDLORD AND THE MORTGAGEE(S) WHOM TENANT HAS BEEN NOTIFIED HOLD MORTGAGES
(DEFINED IN SECTION 23 BELOW), NOTICE AND REASONABLE TIME TO CURE THE ALLEGED
DEFAULT.

21.   RELOCATION. [INTENTIONALLY OMITTED]

22.   HOLDING OVER.

      If Tenant fails to surrender all or any part of the Premises at the
termination of this Lease, occupancy of the Premises after termination shall be
that of a tenancy at sufferance. Tenant's occupancy shall be subject to all the
terms and provisions of this Lease, and Tenant shall pay an amount (on a per
month basis without reduction for partial months during the holdover) equal 125%
of the Base Rent due for the period immediately preceding such holdover for the
initial 30 days of such holdover, and an amount equal to 150% of the Base Rent
due for the period immediately preceding the holdover thereafter during any such
holdover plus, in each case, 100% of applicable Additional Rent. No holdover by
Tenant or payment by Tenant after the termination of this Lease shall be
construed to extend the Term or prevent Landlord from immediate recovery of
possession of the Premises by summary proceedings or otherwise. If Landlord is
unable to deliver possession of the Premises to a new tenant or to perform
improvements for a new tenant as a result of Tenant's holdover and Tenant fails
to vacate the Premises within 15 days after notice from Landlord, Tenant shall
be liable for all damages that Landlord suffers from the holdover.

23.   SUBORDINATION TO MORTGAGES; ESTOPPEL CERTIFICATE.

      Tenant accepts this Lease subject and subordinate to any mortgage(s),
deed(s) of trust, ground lease(s) or other lien(s) now or subsequently arising
upon the Premises, the Building or the Property, and to renewals, modifications,
refinancings and extensions thereof (collectively referred to as a "MORTGAGE").
The party having the benefit of a Mortgage shall be referred to as a
"MORTGAGEE". This clause shall be self-operative, but upon request from a
Mortgagee, Tenant shall execute a commercially reasonable subordination
agreement in favor of the Mortgagee. As an alternative, a Mortgagee shall have
the right at any time to subordinate its Mortgage to this Lease. Upon request,
Tenant, without charge, shall attorn to any successor to Landlord's interest in
this Lease. Landlord and Tenant shall each, within 10 days after receipt of a
written request from the other, execute and deliver a commercially reasonable
estoppel certificate to those parties as are reasonably requested by the other
(including a Mortgagee or prospective purchaser). Without limitation, such
estoppel certificate may include a certification as to the status of this Lease,
the existence of any defaults and the amount of Rent that is due and payable.
Notwithstanding the foregoing in this Section 23 to the contrary, as a condition
precedent to the future subordination of this Lease to a future Mortgage,
Landlord shall be required to provide Tenant with a non-disturbance,
subordination, and attornment agreement in favor of Tenant from any Mortgagee
who comes into existence after the Commencement Date. Such non-disturbance,
subordination, and attornment agreement in favor of Tenant shall provide that,
so long as Tenant is paying the Rent due under the Lease and is not otherwise in
default under the Lease beyond any applicable cure period, its right to
possession and the other terms of the Lease shall remain in full force and
effect. Such non-disturbance, subordination, and attornment agreement may
include other commercially reasonable provisions in favor of the Mortgagee,
including, without limitation, additional time on behalf of the Mortgagee to
cure defaults of the Landlord and provide that (a) neither Mortgagee nor any
successor-in-interest shall be bound by (i) any payment of the Base Rent,
Additional Rent, or other sum due under this Lease for more than 1 month in
advance or (ii) any amendment or modification of the Lease made without the
express written consent of Mortgagee or any successor-in-interest; (b) neither
Mortgagee nor any successor-in-interest will be liable for (i) any act or
omission or warranties of any prior landlord (including Landlord), (ii) the
breach of any warranties or obligations relating to construction of improvements
on the Property or any tenant finish work performed or to have been performed by
any prior landlord (including Landlord), or (iii) the return of any security
deposit, except to the extent such deposits have been received by Mortgagee; and
(c) neither Mortgagee nor any successor-in-interest shall be subject to any
offsets or defenses which Tenant might have against any prior landlord
(including Landlord).

24.   NOTICE.

      All demands, approvals, consents or notices (collectively referred to as a
"NOTICE") shall be in writing and delivered by hand or sent by registered or
certified mail with return receipt requested or sent by overnight or same day
courier service at the party's respective Notice Address(es) set forth in
Section 1. Each notice shall be deemed to have been received on the earlier to
occur of actual delivery or the date on which delivery is refused, or, if Tenant
has vacated the Premises or any other Notice Address of Tenant without providing
a new Notice Address, 3 days after notice is deposited in the U.S. mail or with
a courier service in the manner described above. Either party may, at any time,
change its Notice

                                      12
<PAGE>

Address (other than to a post office box address) by giving the other party
written notice of the new address.

25.   SURRENDER OF PREMISES.

      At the termination of this Lease or Tenant's right of possession, Tenant
shall remove Tenant's Property from the Premises, and quit and surrender the
Premises to Landlord, broom clean, and in good order, condition and repair,
ordinary wear and tear and damage which Landlord is obligated to repair
hereunder excepted. If Tenant fails to remove any of Tenant's Property within 5
Business Days after termination of this Lease or Tenant's right to possession,
Landlord, at Tenant's sole cost and expense, shall be entitled (but not
obligated) to remove and store Tenant's Property. Landlord shall not be
responsible for the value, preservation or safekeeping of Tenant's Property.
Tenant shall pay Landlord, upon demand, the expenses and storage charges
incurred. If Tenant fails to remove Tenant's Property from the Premises or
storage, within 30 days after notice, Landlord may deem all or any part of
Tenant's Property to be abandoned and title to Tenant's Property shall vest in
Landlord.

26.   MISCELLANEOUS.

      26.01 This Lease shall be interpreted and enforced in accordance with the
Laws of the state or commonwealth in which the Building is located and Landlord
and Tenant hereby irrevocably consent to the jurisdiction and proper venue of
such state or commonwealth. If any term or provision of this Lease shall to any
extent be void or unenforceable, the remainder of this Lease shall not be
affected. If there is more than one Tenant or if Tenant is comprised of more
than one party or entity, the obligations imposed upon Tenant shall be joint and
several obligations of all the parties and entities, and requests or demands
from any one person or entity comprising Tenant shall be deemed to have been
made by all such persons or entities. Notices to any one person or entity shall
be deemed to have been given to all persons and entities. Tenant represents and
warrants to Landlord that each individual executing this Lease on behalf of
Tenant is authorized to do so on behalf of Tenant and that Tenant is not, and
the entities or individuals constituting Tenant or which may own or control
Tenant or which may be owned or controlled by Tenant are not, among the
individuals or entities identified on any list compiled pursuant to Executive
Order 13224 for the purpose of identifying suspected terrorists.

      26.02 If either party institutes a suit against the other for violation of
or to enforce any covenant, term or condition of this Lease, the prevailing
party shall be entitled to all of its costs and expenses, including, without
limitation, reasonable attorneys' fees. Landlord and Tenant hereby waive any
right to trial by jury in any proceeding based upon a breach of this Lease.
Either party's failure to declare a default immediately upon its occurrence, or
delay in taking action for a default, shall not constitute a waiver of the
default, nor shall it constitute an estoppel.

      26.03 Whenever a period of time is prescribed for the taking of an action
by Landlord or Tenant (other than the payment of the Security Deposit or Rent),
the period of time for the performance of such action shall be extended by the
number of days that the performance is actually delayed due to strikes, acts of
God, shortages of labor or materials, war, terrorist acts, civil disturbances
and other causes beyond the reasonable control of the performing party ("FORCE
MAJEURE").

      26.04 Landlord shall have the right to transfer and assign, in whole or in
part, all of its rights and obligations under this Lease and in the Building and
Property. Upon transfer Landlord shall be released from any further obligations
hereunder and Tenant agrees to look solely to the successor in interest of
Landlord for the performance of such obligations, provided that, any successor
pursuant to a voluntary, third party transfer (but not as part of an involuntary
transfer resulting from a foreclosure or deed in lieu thereof) shall have
assumed Landlord's obligations under this Lease.

      26.05 Landlord has delivered a copy of this Lease to Tenant for Tenant's
review only and the delivery of it does not constitute an offer to Tenant or an
option.

            (a) Tenant represents that it has dealt directly with and only with
      the Broker as a broker in connection with this Lease. Tenant shall
      indemnify and hold Landlord and the Landlord Related Parties harmless from
      all claims of any other brokers claiming to have represented Tenant in
      connection with this Lease. Landlord agrees to indemnify and hold Tenant
      and the Tenant Related Parties harmless from all claims of any brokers
      claiming to have represented Landlord in connection with this Lease.

            (b) Pursuant to the requirements of OAR 863-10-046, disclosure is
      hereby made that Landlord or an affiliate of Landlord, holds an Oregon
      real estate license and, to the extent applicable, is only representing
      Landlord in this Lease transaction.

      26.06 Time is of the essence with respect to Tenant's exercise of any
expansion, renewal or extension or termination rights granted to Landlord or
Tenant. The expiration of the Term, whether by lapse of time, termination or
otherwise, shall not relieve either party of any obligations which accrued prior
to or which may continue to accrue after the expiration or termination of this
Lease.

                                      13
<PAGE>

      26.07 Tenant may peacefully have, hold and enjoy the Premises, subject to
the terms of this Lease, provided Tenant pays the Rent and fully performs all of
its covenants and agreements. This covenant shall be binding upon Landlord and
its successors only during its or their respective periods of ownership of the
Building.

      26.08 This Lease does not grant any rights to light or air over or about
the Building. Landlord excepts and reserves exclusively to itself any and all
rights not specifically granted to Tenant under this Lease. This Lease
constitutes the entire agreement between the parties and supersedes all prior
agreements and understandings related to the Premises, including all lease
proposals, letters of intent and other documents; with respect to Suite 150, as
described in Section 1 of EXHIBIT F, this Lease does not supercede the Suite 150
Lease. Neither party is relying upon any warranty, statement or representation
not contained in this Lease. This Lease may be modified only by a written
agreement signed by an authorized representative of Landlord and Tenant.

      26.09 Landlord represents to Tenant that, as of the date of this Lease,
Landlord is the fee owner of the Building, and there is no Mortgage encumbering
the Building.

            Landlord and Tenant have executed this Lease as of the day and year
first above written.

                                          LANDLORD:

                                          OR-BF PLAZA LIMITED PARTNERSHIP, A
                                          DELAWARE LIMITED PARTNERSHIP

                                          By: EOP-QRS Trust, a Maryland real
                                              estate investment trust, its
                                              general partner

                                              By: _____________________________

                                              Name: ___________________________

                                              Title: __________________________

                                          TENANT:

                                          UMPQUA BANK, AN OREGON STATE CHARTERED
                                          BANK

                                          By: _________________________________

                                          Name: _______________________________

                                          Title: ______________________________

                                          Tenant's Tax ID Number (SSN or FEIN):

                                          _____________________________________

                                      14
<PAGE>

                                   EXHIBIT A-1

                        OUTLINE AND LOCATION OF SUITE 100

                                       1
<PAGE>

                                   EXHIBIT A-2

                       OUTLINE AND LOCATION OF SUITE 1200

                                       1
<PAGE>

                                   EXHIBIT A-3

                  OUTLINE AND LOCATION OF FIRST MUST-TAKE SPACE

                                       1
<PAGE>

                                   EXHIBIT A-4

                OUTLINE AND LOCATION OF SUITE 1900 OFFERING SPACE

                                       1
<PAGE>

                                   EXHIBIT A-5

                OUTLINE AND LOCATION OF ATM/NIGHT DEPOSITORY AREA

                                       1
<PAGE>

                                    EXHIBIT B

                               EXPENSES AND TAXES

This Exhibit is attached to and made a part of the Lease by and between OR-BF
PLAZA LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP ("Landlord") and
UMPQUA BANK, AN OREGON STATE CHARTERED BANK ("Tenant") for space in the Building
located at One SW Columbia, Portland, Oregon.

1.    PAYMENTS.

      1.01 Tenant shall pay Tenant's Pro Rata Share of the amount, if any, by
which Expenses (defined below) for each calendar year during the Term exceed
Expenses for the Base Year (the "EXPENSE EXCESS") and also the amount, if any,
by which Taxes (defined below) for each calendar year during the Term exceed
Taxes for the Base Year (the "TAX EXCESS"). If Expenses or Taxes in any calendar
year decrease below the amount of Expenses or Taxes for the Base Year, Tenant's
Pro Rata Share of Expenses or Taxes, as the case may be, for that calendar year
shall be $0. On or about January 1 of each calendar year, Landlord shall provide
Tenant with a good faith estimate of the Expense Excess and of the Tax Excess
for each calendar year during the Term. On or before the first day of each
month, Tenant shall pay to Landlord a monthly installment equal to one-twelfth
of Tenant's Pro Rata Share of Landlord's estimate of both the Expense Excess and
Tax Excess. If Landlord determines that its good faith estimate of the Expense
Excess or of the Tax Excess was incorrect by a material amount, Landlord may, no
more often than twice per year, provide Tenant with a revised estimate, but not
more often than twice per calendar year. After its receipt of a revised
estimate, Tenant will pay to Landlord any reconciliation payment necessary to
account for any underpayment of Expense Excess or Tax Excess by Tenant during
such calendar year (or Landlord will credit against Rent next due and payable
under the Lease the amount of any year to date overpayment of Expense Excess or
Tax Excess and thereafter Tenant's monthly payments shall be based upon the
revised estimate. If Landlord does not provide Tenant with an estimate of the
Expense Excess or the Tax Excess by January 1 of a calendar year, Tenant shall
continue to pay monthly installments based on the previous year's estimate(s)
until Landlord provides Tenant with the new estimate.

      1.02 As soon as is practical following the end of each calendar year,
Landlord shall furnish Tenant with a statement of the actual Expenses and
Expense Excess and the actual Taxes and Tax Excess for the prior calendar year
("Landlord's Statement"). Landlord shall use reasonable efforts to furnish
Landlord's Statement on or before June 1 of the calendar year immediately
following the calendar year to which the statement applies. If the estimated
Expense Excess or estimated Tax Excess for the prior calendar year is more than
the actual Expense Excess or actual Tax Excess, as the case may be, for the
prior calendar year, Landlord shall either provide Tenant with a refund or apply
any overpayment by Tenant against Additional Rent due or next becoming due,
provided if the Term expires before the determination of the overpayment,
Landlord shall refund any overpayment to Tenant after first deducting the amount
of Rent due. If the estimated Expense Excess or estimated Tax Excess for the
prior calendar year is less than the actual Expense Excess or actual Tax Excess,
as the case may be, for such prior year, Tenant shall pay Landlord, within 30
days after its receipt of the statement of Expenses or Taxes, any underpayment
for the prior calendar year.

2.    EXPENSES.

      2.01 "EXPENSES" means all costs and expenses incurred in each calendar
year in connection with operating, maintaining, repairing, and managing the
Building and the Property. Expenses include, without limitation: (a) all labor
and labor related costs, including wages, salaries, bonuses, taxes, insurance,
uniforms, training, retirement plans, pension plans and other employee benefits;
(b) management fees, however, in no event shall the management fees for the
Building (expressed as a percentage of gross receipts for the Building) exceed
the prevailing market management fees (expressed as a percentage of gross
receipts), plus 1% of such gross receipts, for comparable third party management
companies offering comparable management services in office buildings similar to
the Building in class, size, age and location; (c) the cost of equipping,
staffing and operating an on-site and/or off-site management office for the
Building, provided if the management office services one or more other buildings
or properties, the shared costs and expenses of equipping, staffing and
operating such management office(s) shall be equitably prorated and apportioned
between the Building and the other buildings or properties; (d) accounting
costs; (e) the cost of services; (f) rental and purchase cost of parts,
supplies, tools and equipment; (g) insurance premiums and deductibles; (h)
electricity, gas and other utility costs; and (i) the amortized cost of capital
improvements (as

                                       1
<PAGE>

distinguished from replacement parts or components installed in the ordinary
course of business) made subsequent to the Base Year which are: (1) performed
primarily to reduce current or future operating expense costs, upgrade Building
security or otherwise improve the operating efficiency of the Property; or (2)
required to comply with any Laws that are enacted, or first interpreted to apply
to the Property, after the date of this Lease. The cost of capital improvements
shall be amortized by Landlord over the lesser of the Payback Period (defined
below) or the useful life of the capital improvement as reasonably determined by
Landlord. The amortized cost of capital improvements may, at Landlord's option,
include actual or imputed interest at the rate paid (or which would be paid) by
Landlord on any funds borrowed for such expenditures from an unaffiliated
third-party financial institution (not to materially exceed the market rate of
interest consistently paid on such borrowed funds for such purposes). "PAYBACK
PERIOD" means the reasonably estimated period of time that it takes for the cost
savings resulting from a capital improvement to equal the total cost of the
capital improvement. Landlord, by itself or through an affiliate, shall have the
right to directly perform, provide and be compensated for any services under
this Lease. If Landlord incurs Expenses for the Building or Property together
with one or more other buildings or properties, whether pursuant to a reciprocal
easement agreement, common area agreement or otherwise, the shared costs and
expenses shall be equitably prorated and apportioned between the Building and
Property and the other buildings or properties.

      2.02  Expenses shall not include:

            (a)   the cost of capital improvements (except as set forth above);

            (b)   depreciation;

            (c)   principal payments of mortgage and other non-operating debts
                  of Landlord;

            (d)   lease concessions, rental abatements and construction
                  allowances granted to specific tenants;

            (e)   costs incurred in connection with the sale, financing or
                  refinancing of the Building;

            (f)   fines, interest and penalties incurred due to the late payment
                  of Taxes or Expenses;

            (g)   organizational expenses associated with the creation and
                  operation of the entity which constitutes Landlord;

            (h)   any penalties or damages that Landlord pays to Tenant under
                  this Lease or to other tenants in the Building under their
                  respective leases;

            (i)   the costs of operating any parking facility serving the
                  Building to the extent covered by parking revenues;

            (j)   management fees in excess of the levels described in Section
                  2.01(b) above;

            (k)   interest (except as provided above for the amortization of
                  capital improvements);

            (l)   amortization and interest arising from mortgages, deeds of
                  trust, similar security instruments and other non-operating
                  debts of Landlord.

            (m)   costs in connection with leasing space in the Building,
                  including brokerage commissions; lease concessions, including
                  rental abatements, the cost of tenant installations and
                  decorations incurred in connection with preparing space for
                  any Building tenant and construction allowances, granted to
                  specific tenants as well as the cost (including imputed rent)
                  of any leasing office;

            (n)   fixed or other rent under ground leases, master leases or
                  other instruments, if any, having superior title rights to
                  this Lease;

            (o)   wages, salaries and benefits paid to any persons above the
                  level of general manager;

                                       2
<PAGE>

            (p)   any penalties or damages that Landlord pays to Tenant under
                  this Lease or to other tenants in the Building under their
                  respective leases (as opposed to the cost of performing
                  Landlord's obligations under such leases);

            (q)   legal, accounting, court and other fees and expenses incurred:
                  (i) in disputes with tenants, prospective tenants or other
                  occupants of the Building (including fees incurred in any
                  tenant's bankruptcy proceedings), Building employees,
                  management agents or leasing agents; (ii) in disputes with
                  purchasers, prospective purchasers, mortgages or prospective
                  mortgages of the Building or the Property, or persons or
                  entities owning an interest in Landlord or any part of the
                  Building or the Property; and (iii) in actions or
                  documentation in connection with the negotiation, review and
                  preparation of leases, contracts of sale, mortgages, deeds of
                  trust or other security instruments, termination of leases or
                  other occupancy agreements, and the sublease or assignment of
                  other Building tenants' leases;

            (r)   any increase (by penalty or interest or similar charge) in
                  utility bills and other costs incurred as a result of Landlord
                  or its agent failing to make such payments when due;

            (s)   costs that are reimbursed out of insurance, warranty or
                  condemnation proceedings or from any other source for which
                  Landlord actually receives reimbursement from any source other
                  than pursuant to a fixed expense escalation clause in tenant
                  leases;

            (t)   fines, penalties and/or legal, accounting, court and other
                  fees and expenses incurred as a result of violation by
                  Landlord of any applicable Laws (as determined by written
                  admission, stipulation, final judgment or arbitration award).

            (u)   sums (other than management fees, it being agreed that the
                  management fees included in Expenses are as described in
                  clause (b) of Section 2.01 above) paid to subsidiaries or
                  other affiliates of Landlord for services on or to the
                  Property, Building and/or Premises, but only to the extent
                  that the costs of such services materially exceed the
                  competitive cost for such services rendered by persons or
                  entities of similar skill, competence and experience.

            (v)   appraisal, advertising, public relations and promotional
                  expenses in connection with the leasing, financing or sale of
                  the Building and tenant retention efforts;

            (w)   costs incurred in connection with the removal, encapsulation
                  or other treatment of asbestos or any other Hazardous
                  Materials (as defined hereinafter and classified as such on
                  the Commencement Date) existing in the Premises as of the date
                  hereof. "Hazardous Materials" means any explosive or
                  radioactive materials, hazardous wastes, or hazardous
                  substances, including without limitation, asbestos containing
                  materials, PCB's, CFC's, or substances defined or regulated as
                  hazardous substances or hazardous materials in the
                  Comprehensive Environmental Response, Compensation and
                  Liability Act of 1980, as amended, 42 U.S.C. Section 9601-9657
                  (and any similar successor laws or regulations); the Hazardous
                  Materials Transportation Act of 1975, 42 U.S.C. Section
                  1001-1012 (and any similar successor laws or regulations), the
                  Resource Conservation and Recovery Act of 1976, 42 U.S.C.
                  Section 6901-6987 (and any similar successor laws or
                  regulations); or any other Federal, State or local law,
                  ordinance or regulation defining, regulating, restricting or
                  otherwise governing the storage, use, generation, release or
                  disposal of Hazardous Materials, except to the extent such
                  handling, treatment, containing, removing or abating is
                  related to the ordinary general repair and maintenance of the
                  Building Common Areas or Property (for example, the removal of
                  and disposal of oil from Building machinery in the course of
                  typical building maintenance and not as a response to any
                  action of any tenant or occupant of the Building or release of
                  Hazardous Materials);

            (x)   any fines, penalties or interest resulting from the negligence
                  or willful misconduct (as determined by written admission,
                  stipulation, final judgment or arbitration award) of the
                  Landlord or its agents, contractors, or employees;

            (y)   contributions to political or charitable organizations;

                                       3
<PAGE>

            (z)   costs relating to another tenant's or occupant's space which
                  (A) were incurred in rendering any service or benefit to such
                  tenant that Landlord was not required, or were for a service
                  in excess of the service that the Landlord was required, to
                  provide Tenant hereunder and (B) were in excess of the
                  Building standard services then being provided by Landlord to
                  all tenants or other occupants in the Building, whether or not
                  such other tenant or occupant is actually charged therefor by
                  Landlord;

            (aa)  costs of repairing, replacing or otherwise correcting defects
                  in the initial construction of the Building or the parking
                  garage serving the Building;

            (bb)  the cost of services provided to other tenants which costs are
                  incorporated into such tenants' base rent, when Tenant is not
                  provided similar services on a similar basis; provided,
                  however, the fact that any tenant does not pay Expenses during
                  its base year shall not, for the purposes of this sentence,
                  mean that service costs that comprise Expenses are "included"
                  in that tenant's base rent; and

            (cc)  any item excluded from Taxes under this Lease.

      2.03 If at any time during a calendar year the Building is not at least
95% occupied or Landlord is not supplying services to at least 95% of the total
Rentable Square Footage of the Building, Expenses shall be determined as if the
Building had been 95% occupied and Landlord had been supplying services to 95%
of the Rentable Square Footage of the Building. If Expenses for a calendar year
are determined as provided in the prior sentence, Expenses for the Base Year
shall also be determined in such manner. Notwithstanding the foregoing, Landlord
may calculate the extrapolation of Expenses under this Section based on 100%
occupancy and service so long as such percentage is used consistently for each
year of the Term (inclusive of the Base Year). The extrapolation of Expenses
under this Section shall be performed in accordance with the methodology
specified by the Building Owners and Managers Association, and only those
Expenses which vary with variations in the Building's occupancy levels will be
subject to adjustment as described herein.

3.    "TAXES" shall mean: (a) all real property taxes and other assessments on
the Building and/or Property, including, but not limited to, gross receipts
taxes, assessments for special improvement districts and building improvement
districts, governmental charges, fees and assessments for police, fire, traffic
mitigation or other governmental service of purported benefit to the Property,
taxes and assessments levied in substitution or supplementation in whole or in
part of any such taxes and assessments and the Property's share of any real
estate taxes and assessments under any reciprocal easement agreement, common
area agreement or similar agreement as to the Property; (b) all personal
property taxes for property that is owned by Landlord and used in connection
with the operation, maintenance and repair of the Property; (c) the applicable
Portland, Oregon business license fee (which is not based on Landlord's revenue)
and (d) all costs and fees incurred in connection with seeking reductions in any
tax liabilities described in (a), (b) and (c), including, without limitation,
any costs incurred by Landlord for compliance, review and appeal of tax
liabilities. Without limitation, Taxes shall not include any income, capital
levy, transfer, capital stock, gift, estate or inheritance tax. If a change in
Taxes is obtained for any year of the Term during which Tenant paid Tenant's Pro
Rata Share of any Tax Excess, then Taxes for that year will be retroactively
adjusted and Landlord shall provide Tenant with a credit, if any, based on the
adjustment. Likewise, if a change is obtained for Taxes for the Base Year, Taxes
for the Base Year shall be restated and the Tax Excess for all subsequent years
shall be recomputed. Tenant shall pay Landlord the amount of Tenant's Pro Rata
Share of any such increase in the Tax Excess within 30 days after Tenant's
receipt of a statement from Landlord.

4.    AUDIT RIGHTS.

      4.01 Landlord grants to Tenant a right to inspect and/or audit Landlord's
books and records with respect to the Expenses and Taxes for the period covered
in a given Landlord's Statement, as follows: Tenant may, within one hundred
twenty (120) days after receiving Landlord's Statement, give Landlord written
notice ("Review Notice") that Tenant intends to review Landlord's records of the
Expenses and/or Taxes for that calendar year. Within a reasonable time after
receipt of the Review Notice, Landlord shall make all pertinent records
available for inspection that are reasonably necessary for Tenant to conduct its
review. If any records are maintained at a location other than the office of the
Building, Tenant may either inspect the records at such other location or pay
for the reasonable cost of copying and shipping the records. If Tenant retains
an agent to review Landlord's records, the agent must be with a CPA

                                       4
<PAGE>

firm licensed to do business in the state or commonwealth where the Property is
located. Tenant shall be solely responsible for all costs, expenses and fees
incurred for the audit and any dispute resolution process, unless it is
determined (by the process set forth hereinafter) that Landlord overstated
Expenses or Taxes by more than four percent (4.0%) in total for such calendar
year in which case Landlord shall pay the Tenant's reasonable third-party fees
and expenses incurred in any dispute resolution procedure, and shall reimburse
to Tenant its reasonable third-party audit costs. Within ninety (90) days after
the records are made available to Tenant, Tenant shall have the right to give
Landlord written notice (an "Objection Notice") stating in reasonable detail any
objection to Landlord's Statement for the relevant year. If Tenant fails to give
Landlord an Objection Notice within the ninety (90) day period or fails to
provide Landlord with a Review Notice within the one hundred twenty (120) day
period described above, Tenant shall be deemed to have approved Landlord's
Statement and shall be barred from raising any claims regarding the Expenses and
Taxes for that year. If Tenant provides Landlord with a timely Objection Notice,
the parties shall use their good faith efforts to resolve such dispute within
thirty (30) days following Tenant's delivery of such Objection Notice to
Landlord. If Landlord and Tenant determine that Expenses for the calendar year
are less than reported, Landlord shall provide Tenant with a credit against the
next installment of Rent in the amount of the overpayment by Tenant until
exhausted, or if this Lease shall have expired or been terminated, any excess
shall be paid to Tenant by check within thirty (30) days after such expiration
or termination, less any amount retained by Landlord and deemed reasonably
necessary to cure any then-existing default on the part of Tenant (i.e., beyond
the giving of applicable notice and the passage of applicable grace periods);
such excess repayment obligation shall survive the expiration or earlier
termination of this Lease. Likewise, if Landlord and Tenant determine that
Expenses for the calendar year are greater than reported, Tenant shall pay
Landlord the amount of any underpayment within thirty (30) days. The records
obtained by Tenant shall be treated as confidential. In no event shall Tenant be
permitted to examine Landlord's records or to dispute any statement of Expenses
unless Tenant has paid and continues to pay all Rent when due.

      4.02 If Landlord and Tenant, working together in good faith, are unable
within thirty (30) days following Landlord's receipt of a timely Objection
Notice from Tenant to resolve the discrepancy between Landlord's Statement and
Tenant's review and/or audit ("Discrepancy"), either party, by written notice
(the "Arbitration Notice") to the other within ten (10) Business Days after the
expiration of such thirty (30) day period, shall have the right to have the
Discrepancy determined by binding arbitration in accordance with the procedures
set forth below. If Landlord and Tenant cannot agree upon the resolution of the
Discrepancy and neither party elects to invoke its right of arbitration,
Tenant's Objection Notice shall be deemed to be null and void and of no further
force and effect. If the right of arbitration is invoked, Landlord and Tenant,
within ten (10) Business Days after the date of the Arbitration Notice, shall
each simultaneously submit to the other, in a sealed envelope, its good faith
analysis and resolution of the Discrepancy (collectively referred to as the
"Proposed Discrepancy Resolutions"). If the higher of such Proposed Discrepancy
Resolutions is not more than one hundred five percent (105%) of the lower of
such Proposed Discrepancy Resolutions, then the resolution of the Discrepancy
shall be the average of the two Proposed Discrepancy Resolutions. If the
Discrepancy is not resolved by the exchange of the proposed Discrepancy
Resolutions, Landlord and Tenant, within seven (7) days of the exchange of the
Proposed Discrepancy Resolutions, shall select as an arbitrator a mutually
acceptable licensed CPA firm with experience in and familiarity with general
industry practice with respect to the operation of and accounting for a first
class office building in Portland, Oregon, and whose compensation shall in no
way be contingent upon or correspond to the financing impact on Landlord or
Tenant resulting from the review and/or audit. If the parties cannot agree on an
arbitrator, then within a second period of seven (7) days, each shall select an
independent licensed CPA firm meeting the aforementioned criteria, and within a
third period of seven (7) days, the two appointed licensed CPA firms shall
select a third licensed CPA firm meeting the aforementioned criteria, and the
third licensed CPA firm shall determine the resolution of the Discrepancy. If
one party shall fail to make such an appointment within said second seven (7)
day period, then the licensed CPA firm chosen by the other party shall be the
sole arbitrator. If the two appointed licensed CPA firms are unable to agree
upon such third licensed CPA firm, then either party, on behalf of both, may
request appointment of such a qualified licensed CPA firm by the then Chief
Judge of the United States District Court having jurisdiction over the Building,
acting in his private non-judicial capacity. Request for appointment shall be
made in writing with a copy given to the other party. Each party agrees that
said Judge shall have the power to make the appointment. Once the arbitrator has
been selected as provided for above, then, as soon thereafter as practicable but
in any case within fourteen (14) days, the arbitrator shall select one of the
two Proposed Discrepancy Resolutions submitted by the Landlord and Tenant, which
must be the one that is closer to the resolution of the Discrepancy as
determined by the arbitrator. The selection of the arbitrator shall be rendered
in writing to both Landlord and

                                       5
<PAGE>

Tenant and shall be final and binding upon them. If the arbitrator believes that
expert advice would materially assist him, he may retain one or more qualified
persons to provide such expert advice. Any fees of any counsel or experts
engaged directly by Landlord or Tenant, however, shall be borne by the party
retaining such counsel or expert.

                                       6
<PAGE>

                                    EXHIBIT C

                                   WORK LETTER

This Exhibit is attached to and made a part of the Lease by and between OR-BF
PLAZA LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP ("Landlord") and
UMPQUA BANK, AN OREGON STATE CHARTERED BANK ("Tenant") for space in the Building
located at One SW Columbia, Portland, Oregon.

As used in this Workletter, the "Premises" shall be deemed to mean the Premises,
as initially defined in the attached Lease, but inclusive of Suite 150, as
described in Section 1 of EXHIBIT F attached to the Lease, and the First Must
Take Space, as described in Section 5 of EXHIBIT F attached to the Lease.

I.    ALTERATIONS AND ALLOWANCE.

      A.    Tenant, following the delivery of the Premises by Landlord and the
            full and final execution and delivery of the Lease to which this
            Exhibit is attached and all Suite 150 prepaid rental and security
            deposits required under such agreement, shall have the right to
            perform alterations and improvements in the Premises (the "INITIAL
            ALTERATIONS"). Notwithstanding the foregoing, Tenant and its
            contractors shall not have the right to perform Initial Alterations
            in the Premises unless and until Tenant has complied with all of the
            terms and conditions of Section 9 of the Lease, including, without
            limitation, approval by Landlord of the final plans for the Initial
            Alterations and the contractors to be retained by Tenant to perform
            such Initial Alterations. Tenant shall be responsible for all
            elements of the design of Tenant's plans (including, without
            limitation, compliance with law, functionality of design, the
            structural integrity of the design, the configuration of the
            premises and the placement of Tenant's furniture, appliances and
            equipment), and Landlord's approval of Tenant's plans shall in no
            event relieve Tenant of the responsibility for such design.
            Landlord's approval of the contractors to perform the Initial
            Alterations shall not be unreasonably withheld. The parties agree
            that Landlord's approval of the general contractor to perform the
            Initial Alterations shall not be considered to be unreasonably
            withheld if any such general contractor (i) does not have trade
            references reasonably acceptable to Landlord, (ii) does not maintain
            insurance as required pursuant to the terms of this Lease, (iii)
            does not have the ability to be bonded for the work in an amount of
            no less than 150% of the total estimated cost of the Initial
            Alterations, (iv) does not provide current financial statements
            reasonably acceptable to Landlord, or (v) is not licensed as a
            contractor in the state/municipality in which the Premises is
            located. Tenant acknowledges the foregoing is not intended to be an
            exclusive list of the reasons why Landlord may reasonably withhold
            its consent to a general contractor.

      B.    1.    Provided Tenant is not in default, Landlord agrees to
                  contribute the sum of $1,270,440.00 (i.e., $30.00 per rentable
                  square foot of the Premises), inclusive of the First Must Take
                  Space (the "ALLOWANCE") toward the cost of performing the
                  Initial Alterations in preparation of Tenant's occupancy of
                  the Premises. The Allowance may only be used for the cost of
                  preparing design and construction documents and mechanical and
                  electrical plans for the Initial Alterations and for hard
                  costs (including the installation of Cable) in connection with
                  the Initial Alterations. The Allowance may be allocated by
                  Tenant towards the cost of Initial Alterations in any portion
                  of the Premises (i.e., Suite 100, Suite 1200, Suite 150 or the
                  First Must Take Space) in such manner as Tenant elects.

            2.    The Allowance shall be paid to Tenant (or, at Landlord's
                  option, if necessary to remove a lien, to the order of the
                  general contractor that performs the Initial Alterations) in
                  periodic disbursements within 30 days after receipt of the
                  following documentation: (i) an application for payment and
                  sworn statement of contractor substantially in the form of AIA
                  Document G-702 (or such other substantially similar form
                  acceptable to Landlord in Landlord's reasonable discretion)
                  covering all work for which disbursement is to be made to a
                  date specified therein; (ii) a certification from an AIA
                  architect substantially in the form of the Architect's
                  Certificate for Payment which is located on AIA Document G702,
                  Application and Certificate of Payment (or such other
                  substantially similar

                                       1
<PAGE>

                  form acceptable to Landlord in Landlord's reasonable
                  discretion); (iii) Contractor's, subcontractor's and material
                  supplier's waivers of liens which shall cover all Initial
                  Alterations for which disbursement is being requested and all
                  other statements and forms required for compliance with the
                  mechanics' lien laws of the state in which the Premises is
                  located, together with all such invoices, contracts, or other
                  supporting data as Landlord or Landlord's Mortgagee may
                  reasonably require; (iv) [INTENTIONALLY OMITTED]; (v) plans
                  and specifications for the Initial Alterations, together with
                  a certificate from an AIA architect that such plans and
                  specifications comply in all material respects with all laws
                  affecting the Building, Property and Premises; (vi) copies of
                  all construction contracts for the Initial Alterations,
                  together with copies of all change orders, if any; and (vii) a
                  request to disburse from Tenant containing an approval by
                  Tenant of the work done and a good faith estimate of the cost
                  to complete the Initial Alterations. Upon completion of the
                  Initial Alterations, and prior to final disbursement of the
                  Allowance, Tenant shall furnish Landlord with: (1) general
                  contractor and architect's completion affidavits, (2) full and
                  final waivers of lien, (3) receipted bills covering all labor
                  and materials expended and used, (4) as-built plans of the
                  Initial Alterations, and (5) the certification of Tenant and
                  its architect that the Initial Alterations have been installed
                  in a good and workmanlike manner in accordance with the
                  approved plans, and in accordance with applicable Laws. In no
                  event shall Landlord be required to disburse the Allowance
                  more than one time per month. If the Initial Alterations
                  exceed the Allowance, Tenant shall be entitled to the
                  Allowance in accordance with the terms hereof, but each
                  individual disbursement of the Allowance shall be disbursed in
                  the proportion that the Allowance bears to the total cost for
                  the Initial Alterations, less the 10% retainage referenced
                  above. Notwithstanding anything herein to the contrary,
                  Landlord shall not be obligated to disburse any portion of the
                  Allowance during the continuance of an uncured default under
                  the Lease, and Landlord's obligation to disburse shall only
                  resume when and if such default is cured.

      C.    If the cost of the Initial Alterations is less than the Allowance,
            Tenant, provided it is not in default under the Lease, shall be
            entitled to apply such unused Allowance toward (i) the cost of
            moving from its existing location(s) into the Premises, as well as
            (ii) the cost of telephone, data and computer cabling, consulting
            fees, acquisition and installation and/ or moving of Tenant's
            furniture, trade fixtures and equipment and other personal property
            into the Premises (collectively, "Moving and Relocation Costs").
            Such portion of the unused Allowance which Tenant is entitled to
            apply toward its Moving and Relocation Costs is referred to herein
            as the "Moving Allowance". Any unused portion of the Allowance that
            is in excess of the Moving Allowance shall accrue to the sole
            benefit of Landlord, it being understood and agreed that Tenant
            shall not be entitled to receive any credit or abatement in
            connection therewith. Landlord shall disburse the Moving Allowance,
            or applicable portion thereof, to Tenant within forty-five (45) days
            after receipt of paid invoices from Tenant with respect to Tenant's
            actual Moving and Relocation Costs.

      D.    Landlord, at Landlord's cost (not to be applied against the
            Allowance), agrees that Landlord will demolish the existing ceiling
            system on both the 12th and 14th floors of the Building (in
            accordance with a construction schedule agreed upon by and between
            Landlord and Tenant) and replace the same with a Building-standard
            ceiling system, including Building-standard lights and all necessary
            seismic upgrades to the sprinkler and HVAC supports (the "Landlord
            Work"). The estimated cost of such work, per rentable square foot,
            is as follows:

<TABLE>
<CAPTION>
                                COST PER
  ITEM OF WORK              RENTABLE SQUARE FOOT
------------------          --------------------
<S>                         <C>
Ceiling demolition                  $0.75
Seismic Costs                       $1.50
Lights                              $1.10
Ceiling                             $2.25
                                    -----

Total                               $5.60
                                    =====
</TABLE>

                                       2
<PAGE>

            Notwithstanding the foregoing, Tenant shall have the right, to be
            exercised by written notice delivered to Landlord, to elect to
            install an above-standard ceiling as opposed to a Building-standard
            ceiling, as described above, in the 12th and/or the 14th floors. In
            such event, Landlord will provide a credit, to be added to the
            Allowance, in the amount of the cost of the Building-standard
            ceiling system which Landlord would have otherwise constructed on
            such floor(s), which credit is estimated to be $4.10 per rentable
            square foot. Additionally, in any such event, Landlord will remain
            responsible for the performance of seismic upgrades to the sprinkler
            and HVAC supports in connection with such ceiling replacement. As
            part of the Landlord Work, Landlord will retain a mutually
            acceptable asbestos consultant (tentatively PBS Environmental of
            Portland) to survey the 12th and 14th floors of the Building during
            the course of performance of the Landlord Work in order to determine
            whether such floor(s) contain asbestos containing construction (or
            other) materials; said consultant will also survey Suite 100 (such
            survey of the 12th and 14th floors and Suite 100 being referred to
            herein as the "Asbestos Survey"). The cost of the Asbestos Survey
            shall be borne by Tenant; provided, Tenant shall be consulted on its
            scope and design. The results of the Asbestos Survey will be made
            available by Landlord to Tenant provided Tenant executes a
            confidentiality agreement in form and substance reasonably
            acceptable to Landlord. If the results of the Asbestos Survey show
            that there is asbestos containing construction (or other) material
            in or on the 12th or 14th floors, or in Suite 100, Landlord, at
            Landlord's cost (not to be deducted from the Allowance) shall, as
            part of the Landlord Work, abate or encapsulate such asbestos
            consistent with applicable Laws (documentation of such work shall be
            available for Tenant's review in the Building' management office).
            Additionally, Landlord agrees that at Tenant's request, Landlord
            will perform a similar Asbestos Survey at Tenant's cost and, will,
            at Landlord's cost, abate or encapsulate any asbestos containing
            construction (or other) materials, with respect to (i) the Second
            Must-Take Space (defined in Section 6 of Exhibit F to the Lease)
            prior to Tenant's occupancy of such space, (ii) the Suite 1900
            Offering Space (defined in Section 7.A of Exhibit F to the Lease) if
            Tenant exercises its Right of First Offer with respect to Suite 1900
            and (iii) the "Offering Space", if Tenant exercises its Second Right
            of First Offer pursuant to Section 7.B of Exhibit F to the Lease.

      G.    Notwithstanding any of the foregoing provisions of this Exhibit C or
            the Lease to the contrary:

            (i)   If, as a condition to the issuance of a permit for the
                  construction of the Initial Alterations to be performed by
                  Tenant within Suites 100 and 1200 (12th floor), the City of
                  Portland ("City") requires that the Building undergo seismic
                  retrofit or upgrade work on a "building-wide" or other
                  "outside-the-Premises" basis, as opposed to or in addition to
                  the seismic ceiling work described above (and provided such
                  requirement is not triggered by a specific type of
                  non-standard improvement proposed by Tenant, such as the
                  installation of a vault, as opposed to general office
                  construction), the parties agree to cooperate in good faith in
                  an effort to obtain a waiver of such requirement from City and
                  Tenant agrees to reasonably cooperate with Landlord, in making
                  such revisions to Tenant's plans as may be reasonably
                  necessary to achieve such waiver. If, however, City has not
                  agreed to waive such condition within thirty (30) days
                  following the parties' request of waiver of such requirement
                  and the cost of such seismic retrofit or upgrade work exceeds
                  $200,000, Landlord may terminate the Lease by written notice
                  to Tenant, such notice to be given within ten (10) business
                  days following the expiration of such thirty (30) day period.
                  If Landlord does not exercise such termination option,
                  Landlord will be deemed to have agreed to assume the
                  responsibility for any such "building-wide" or other "outside
                  the Premises" seismic upgrade work so required by City as a
                  condition to the issuance of such construction permit. The
                  cost of such work shall not be included in Expenses pursuant
                  to Section 2 of Exhibit B.

            (ii)  If, subsequent to the completion of the Initial Alterations in
                  Suites 100 and 1200, as a condition to the issuance of a
                  permit for the construction of Tenant's Alterations to the
                  14th Floor, the Second Must-Take Space, the Suite 1900
                  Offering Space, or the other Offering Space, City requires
                  pursuant to Current Code (defined below) that the Building
                  undergo

                                       3
<PAGE>

                  seismic retrofit or upgrade work on a "building-wide" or other
                  "outside-the-Premises" basis, as opposed to or in addition to
                  the seismic ceiling work described above (again, provided such
                  requirement is not triggered by a specific, non-standard
                  improvement proposed by Tenant), then the parties agree to
                  cooperate in good faith in an effort to obtain a waiver of
                  such requirement from City and Tenant agrees to reasonably
                  cooperate with Landlord, in making such revisions to Tenant's
                  plans as may be reasonably necessary to achieve such waiver.
                  If, however, City has not agreed to waive such condition
                  within thirty (30) days following the parties' request of
                  waiver of such requirement, Landlord shall be deemed to have
                  agreed to assume the responsibility for any such
                  "building-wide" or "outside-the-Premises" seismic upgrade work
                  so required by City as a condition to the issuance of such
                  construction permit. The cost of such work shall not be
                  included in Expenses pursuant to Section 2 of Exhibit B.

            (iii) Further, if at any time during the Term or any extension
                  thereof, City or other governmental jurisdiction requires that
                  the Building undergo seismic retrofit or upgrade work on a
                  "building-wide" or other "outside-the-Premises" basis and such
                  retrofit or upgrade is imposed to bring the Building closer to
                  or in full compliance with Zone III or current State of Oregon
                  Structural Specialty Code or other similar earthquake
                  standards currently (circa December 1, 2004) applicable to new
                  buildings in the City ("Current Code") and if the performance
                  of such retrofit or upgrade would otherwise be properly
                  included in Expenses pursuant to Section 2 of Exhibit B,
                  recoverable from Tenant albeit on an amortized basis with
                  interest, such recovery or pass through of such cost
                  (including imputed or actual interest thereon) from Tenant
                  shall not exceed (i.e., shall be capped at) $1.00 per square
                  foot of the Premises per year; provided, however that no such
                  cap shall be imposed on the pass through of costs as Expenses
                  for seismic work to the extent the work is required to comply
                  with laws, rules or regulations first enacted or interpreted
                  above and beyond the Current Code.

      H.    Except as expressly set forth herein, this Exhibit shall not be
            deemed applicable to any additional space added to the Premises at
            any time or from time to time, whether by any options under the
            Lease or otherwise (with the exception of the First Must-Take
            Space), or to any portion of the original Premises or any additions
            to the Premises in the event of a renewal or extension of the
            original Term of the Lease, whether by any options under the Lease
            or otherwise, unless expressly so provided in the Lease or any
            amendment or supplement to the Lease.

      I.    In addition to the Landlord Work, Landlord agrees to (i) make
            certain cosmetic upgrades to the Building's parking garage (i.e.,
            clean garage surfaces and paint vertical surfaces and add additional
            lighting where necessary) and (ii) upgrade the finishes within the
            existing freight elevator which accesses the plaza level space of
            the Building so as to more readily approximate the finishes in a
            passenger elevator. Upgrades to the entrance area of the parking
            garage and the freight elevator shall be completed prior to Tenant's
            occupancy of the Premises (which the parties acknowledge is expected
            to occur later than the Commencement Date). Landlord's cosmetic
            upgrades of the lower levels of the Building's parking garage shall
            be completed no later than June 30, 2006. Additionally, Landlord
            agrees to upgrade the external facade above the entrances on the
            ground floor of the Building by painting the existing metal
            spandrels to match the existing exterior finishes and by installing
            thereon brass lettering identifying Tenant (such lettering to be
            supplied by Tenant at Tenant's cost and approved by Landlord);
            Landlord shall meet and confer with Tenant in good faith, in an
            effort to reach a mutually acceptable design for such facade
            upgrades.

                                       4
<PAGE>

                                    EXHIBIT D

                               COMMENCEMENT LETTER
                                    (EXAMPLE)

Date     ______________________

Tenant   ______________________
Address  ______________________
         ______________________
         ______________________

Re:   Commencement Letter with respect to that certain Lease dated as of the
      _____ day of __________, _____, by and between OR-BF PLAZA LIMITED
      PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP, as Landlord, and UMPQUA BANK,
      AN OREGON STATE CHARTERED BANK, as Tenant, for Premises initially
      containing 25,184 rentable square feet on the 1st and 12th floors of the
      Building, designated as Suite 100 and 1200, respectively, and subsequently
      to include additional space on the 1st floor consisting of 4,303 rentable
      square feet and designated as Suite 150 located at One SW Columbia,
      Portland, Oregon.

Dear __________________:

      In accordance with the terms and conditions of the above referenced Lease,
Tenant accepts possession of the Premises and agrees:

      1. The Commencement Date with respect to the ___________ space is
________________________;

      Please acknowledge your acceptance of possession and agreement to the
terms set forth above by signing all 3 counterparts of this Commencement Letter
in the space provided and returning 2 fully executed counterparts to my
attention.

Sincerely,

________________________
Authorized Signatory

Agreed and Accepted:

      Tenant: ______________________

      By:     ______________________
      Name:   ______________________
      Title:  ______________________
      Date:   ______________________

                                        1
<PAGE>

                                    EXHIBIT E

                         BUILDING RULES AND REGULATIONS

      The following rules and regulations shall apply, where applicable, to the
Premises, the Building, the parking facilities (if any), the Property and the
appurtenances. In the event of a conflict between the following rules and
regulations and the remainder of the terms of the Lease, the remainder of the
terms of the Lease shall control. Capitalized terms have the same meaning as
defined in the Lease. If there is a conflict between this Lease and any rules
and regulations enacted after the date of this Lease, the terms of this Lease
shall control. The rules and regulations shall be generally applicable, and
generally applied in the same manner, to all tenants of the Building.

1.    Sidewalks, doorways, vestibules, halls, stairways and other similar areas
      shall not be obstructed by Tenant or used by Tenant for any purpose other
      than ingress and egress to and from the Premises. No rubbish, litter,
      trash, or material shall be placed, emptied, or thrown in those areas. At
      no time shall Tenant permit Tenant's employees to loiter in Common Areas
      or elsewhere about the Building or Property.

2.    Plumbing fixtures and appliances shall be used only for the purposes for
      which designed and no sweepings, rubbish, rags or other unsuitable
      material shall be thrown or placed in the fixtures or appliances. Damage
      resulting to fixtures or appliances by Tenant, its agents, employees or
      invitees shall be paid for by Tenant and Landlord shall not be responsible
      for the damage.

3.    No signs, advertisements or notices shall be painted or affixed to
      windows, doors or other parts of the Building, except those of such color,
      size, style and in such places as are first approved in writing by
      Landlord. Landlord will not unreasonably withhold its approval of Umpqua
      Bank's standard design. All tenant identification and suite numbers at the
      entrance to the Premises shall be installed by Landlord, at Tenant's cost
      and expense, using the standard graphics for the Building. Except in
      connection with the hanging of lightweight pictures and wall decorations,
      no nails, hooks or screws shall be inserted into any part of the Premises
      or Building except by the Building maintenance personnel without
      Landlord's prior approval, which approval shall not be unreasonably
      withheld.

4.    Landlord shall provide and maintain in the first floor (main lobby) of the
      Building an alphabetical directory board or other directory device listing
      tenants and no other directory shall be permitted unless previously
      consented to by Landlord in writing.

5.    Subject to the provisions of Article 10 of the Lease regarding any Secured
      Area, Tenant shall not place any lock(s) on any door in the Premises or
      Building without Landlord's prior written consent, which consent shall not
      be unreasonably withheld, and Landlord shall have the right at all times
      to retain and use keys or other access codes or devices to all locks
      within and into the Premises. A reasonable number of keys to the locks on
      the entry doors in the Premises shall be furnished by Landlord to Tenant
      at Tenant's cost and Tenant shall not make any duplicate keys. All keys
      shall be returned to Landlord at the expiration or early termination of
      the Lease.

6.    All contractors, contractor's representatives and installation technicians
      performing work in the Building shall be subject to Landlord's prior
      approval, which approval shall not be unreasonably withheld, and shall be
      required to comply with Landlord's standard rules, regulations, policies
      and procedures, which may be revised from time to time.

7.    Movement in or out of the Building of furniture or office equipment, or
      dispatch or receipt by Tenant of merchandise or materials requiring the
      use of elevators, stairways, lobby areas or loading dock areas, shall be
      restricted to hours reasonably designated by Landlord. Tenant shall obtain
      Landlord's prior approval by providing a detailed listing of the activity,
      which approval shall not be unreasonably withheld. If approved by
      Landlord, the activity shall be under the supervision of Landlord and
      performed in the manner required by Landlord. Tenant shall assume all risk
      for damage to articles moved and injury to any persons resulting from the
      activity. If equipment, property, or personnel of Landlord or of any other
      party is damaged or injured as a result of or in connection with the
      activity, Tenant shall be solely liable for any resulting damage, loss or
      injury.

8.    Landlord shall have the right to approve the weight, size, or location of
      heavy equipment or articles in and about the Premises, which approval
      shall not be unreasonably

                                       1
<PAGE>

      withheld. Damage to the Building by the installation, maintenance,
      operation, existence or removal of Tenant's Property shall be repaired at
      Tenant's sole expense.

9.    Corridor doors, when not in use, shall be kept closed.

10.   Tenant shall not: (1) make or permit any improper, objectionable or
      unpleasant noises or odors in the Building, or otherwise interfere in any
      way with other tenants or persons having business with them; (2) without
      the prior written approval of Landlord (not to be unreasonably withheld)
      solicit business or distribute or cause to be distributed, in any portion
      of the Building, handbills, promotional materials or other advertising; or
      (3) conduct or permit other activities in the Building that might, in
      Landlord's sole opinion, constitute a nuisance. Notwithstanding the
      provisions of clause (2) above, Landlord acknowledges that Tenant desires
      to have a "brand specific" presence in the lobby of the Building from time
      to time. Tenant shall present to Landlord, for Landlord's approval,
      detailed descriptions of any proposed activity to be carried out by Tenant
      within the Building lobby (including a description of any physical
      placement Tenant desires to install), and Landlord shall, in good faith,
      diligently cooperate with Tenant in attempting to arrive at a mutually
      acceptable set of guidelines with respect to the same. Landlord agrees to
      promptly review and confer with Tenant with respect to any such proposed
      submission.

11.   No animals, except those assisting handicapped persons, shall be brought
      into the Building or kept in or about the Premises.

12.   No inflammable, explosive or dangerous fluids or substances shall be used
      or kept by Tenant in the Premises, Building or about the Property, except
      for those substances as are typically found in similar premises used for
      general office purposes and are being used by Tenant in a safe manner and
      in accordance with all applicable Laws. Tenant shall not, without
      Landlord's prior written consent, use, store, install, spill, remove,
      release or dispose of, within or about the Premises or any other portion
      of the Property, any asbestos-containing materials or any solid, liquid or
      gaseous material now or subsequently considered toxic or hazardous under
      the provisions of 42 U.S.C. Section 9601 et seq. or any other applicable
      environmental Law which may now or later be in effect. Tenant shall comply
      with all Laws pertaining to and governing the use of these materials by
      Tenant and shall remain solely liable for the costs of abatement and
      removal.

13.   Tenant shall not use, or permit any part of the Premises to be used for
      lodging, sleeping or for any illegal purpose.

14.   Tenant shall not knowingly take any action which would violate Landlord's
      labor contracts or which would cause a work stoppage, picketing, labor
      disruption or dispute or interfere with Landlord's or any other tenant's
      or occupant's business or with the rights and privileges of any person
      lawfully in the Building ("LABOR Disruption"). If a Labor Dispute occurs
      due to Tenant's acts or omissions, Tenant shall take the actions necessary
      to resolve the Labor Disruption, and shall have pickets removed and, at
      the request of Landlord, immediately terminate any work in the Premises
      that gave rise to the Labor Disruption, until Landlord gives its written
      consent for the work to resume. Tenant shall have no claim for damages
      against Landlord or any of the Landlord Related Parties nor shall the
      Commencement Date of the Term be extended as a result of the above
      actions.

15.   Tenant shall not install, operate or maintain in the Premises or in any
      other area of the Building, electrical equipment that would overload the
      electrical system beyond its capacity for proper, efficient and safe
      operation as determined solely by Landlord. Tenant shall not furnish
      cooling or heating to the Premises, including, without limitation, the use
      of electric or gas heating devices, without Landlord's prior written
      consent.

16.   Tenant shall not operate or permit to be operated a coin or token operated
      vending machine or similar device (including, without limitation,
      telephones, lockers, toilets, scales, amusement devices and machines for
      sale of beverages, foods, candy, cigarettes and other goods), except for
      machines for the exclusive use of Tenant's employees and invitees.

17.   Bicycles and other vehicles are not permitted inside the Building or on
      the walkways outside the Building, except in areas designated by Landlord.

                                       2
<PAGE>

18.   Landlord may from time to time adopt systems and procedures for the
      security and safety of the Building and Property, its occupants, entry,
      use and contents. Tenant, its agents, employees, contractors, guests and
      invitees shall comply with Landlord's systems and procedures.

19.   Landlord shall have the right to prohibit the use of the name of the
      Building by Tenant in any publicity of Tenant; for so long as the Tenant
      is Umpqua Bank and the Building is named after Umpqua Bank, this Rule No.
      19 shall not apply. Upon written notice from Landlord, Tenant shall
      refrain from and discontinue such publicity immediately.

20.   Neither Tenant nor its agents, employees, contractors, guests or invitees
      shall smoke or permit smoking in the Common Areas, unless a portion of the
      Common Areas have been declared a designated smoking area by Landlord, nor
      shall the above parties allow smoke from the Premises to emanate into the
      Common Areas or any other part of the Building. Landlord shall have the
      right to designate the Building (including the Premises) as a non-smoking
      building.

21.   Landlord shall have the right to designate and approve standard window
      coverings for the Premises and to establish rules to assure that the
      Building presents a uniform exterior appearance. Tenant shall ensure, to
      the extent reasonably practicable, that window coverings are closed on
      windows in the Premises while they are exposed to the direct rays of the
      sun.

22.   Deliveries to and from the Premises shall be made only at the times in the
      areas and through the entrances and exits reasonably designated by
      Landlord. Tenant shall not make deliveries to or from the Premises in a
      manner that might interfere with the use by any other tenant of its
      premises or of the Common Areas, any pedestrian use, or any use which is
      inconsistent with good business practice.

23.   The work of cleaning personnel shall not be hindered by Tenant after 5:30
      P.M., and cleaning work may be done at any time when the offices are
      vacant. Windows, doors and fixtures may be cleaned at any time. Tenant
      shall provide adequate waste and rubbish receptacles to prevent
      unreasonable hardship to the cleaning service.

                                       3
<PAGE>

                                    EXHIBIT F

                              ADDITIONAL PROVISIONS

This Exhibit is attached to and made a part of the Lease by and between OR-BF
PLAZA LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP ("Landlord") and
UMPQUA BANK, AN OREGON STATE CHARTERED BANK ("Tenant") for space in the Building
located at One SW Columbia, Portland, Oregon.

1.    EXISTING LEASES.

      A.    Generally. The parties acknowledge that Tenant currently (as of the
            date of this Lease) occupy space in the Building as follows:

            1.    Suite 150 Lease. Pursuant to the provisions of that certain
                  Lease dated as of April 5, 1999 (the "Suite 150 Lease"),
                  Landlord (as successor in interest to Spieker Properties,
                  L.P.) leases to Tenant (as successor in interest to Centennial
                  Bancorp) certain space located on the first (1st) floor of the
                  Building, consisting of 5,303 rentable square feet and
                  designated as Suite 150 ("Suite 150"). Tenant occupies Suite
                  150 pursuant to the Suite 150 Lease, Tenant occupies Suite 150
                  for the purpose of transacting commercial and retail banking
                  services. The Suite 150 Lease is scheduled to expire, unless
                  sooner terminated pursuant to the terms of the Suite 150
                  Lease, as of June 30, 2009.

            2.    Suite 900 Lease. Pursuant to the provisions of that certain
                  Lease dated as of April 5, 1999, as said Lease has been
                  amended by a First Amendment dated as of June 18, 1999 (the
                  "Suite 900 Lease"), Landlord (as successor in interest to
                  Spieker Properties, L.P.) leases to Tenant (as successor in
                  interest to Centennial Bank) certain space located on the
                  ninth (9th) floor of the Building, consisting of approximately
                  6,588 rentable square feet and designated as Suite 900 ("Suite
                  900").

      B.    Addition of Suite 150. Effective as of July 1, 2009 (the "Suite 150
            Expansion Effective Date"), Suite 150 shall be added to and become a
            part of the Premises. From and after the Suite 150 Expansion
            Effective Date, the Premises (as then expanded to include the First
            Must-Take Space, as well as any other additional space added to the
            Premises pursuant to the provisions of Section 7 below) and the
            Suite 150, collectively, shall be deemed the "Premises", as defined
            in the Lease. The term for Suite 150 shall commence on the Suite 150
            Expansion Effective Date and end on the Termination Date. Tenant's
            occupancy of Suite 150 from and after the Suite 150 Expansion
            Effective Date, shall be subject to all the terms and conditions of
            the Lease except as expressly modified in this Section 1(b), it
            being acknowledged, however, that Tenant shall not be entitled to
            receive any allowances, abatements or other financial concessions
            granted with respect to the original Premises unless such
            concessions are expressly provided for herein with respect to Suite
            150.

            1.    Base Rent for Suite 150. From and after the Suite 150
                  Expansion Effective Date, the schedule of Base Rent payable
                  with respect to Suite 150 for the balance of the Term shall be
                  the following:

<TABLE>
<CAPTION>
                                               ANNUAL RATE              MONTHLY
               PERIOD                        PER SQUARE FOOT           BASE RENT
------------------------------------         ---------------          ----------
<S>                                          <C>                      <C>
   JULY 1, 2009  - NOVEMBER 30, 2010              $24.34              $10,756.25
DECEMBER 1, 2010 - NOVEMBER 30, 2012              $25.31              $11,184.91
DECEMBER 1, 2012 - NOVEMBER 30, 2014              $26.32              $11,631.25
DECEMBER 1, 2014 - NOVEMBER 30, 2016              $27.37              $12,095.26
</TABLE>

            2.    Tenant's Pro Rata Share for Suite 150. From and after the
                  Suite 150 Expansion Effective Date, Tenant's Pro Rata Share
                  shall be increased by 1.9527% to reflect the addition to the
                  Premises of Suite 150.

            3.    Expenses and Taxes. For the period commencing with the Suite
                  150 Expansion Effective Date, Tenant shall pay for Tenant's
                  Pro Rata Share of Expenses and Taxes applicable to Suite 150
                  in accordance with the

                                        1
<PAGE>

                  terms of the Lease, and the Base Year with respect to Suite
                  150 shall be the same as the Base Year for the initial
                  Premises.

            4.    "As-Is" Acceptance. Tenant shall accept Suite 150 in its then
                  "as-is" condition, without any agreements, representations,
                  understandings or obligations on the part of Landlord to
                  perform any alterations, repairs or improvements therein.

            5.    Use. Effective as of the Suite 150 Expansion Effective Date:

                  (a)   Use Generally. Section 1.11 of the Lease shall be
                        revised to read as follows:

                  "General office use and, with respect to Suite 150 only, the
                  operation of a retail banking facility; provided that, in no
                  event shall any portion of the Premises located on the 10th
                  floor of the Building, be used for the operation of a business
                  offering accounting services or consulting services, so long
                  as an existing (as of the date of this Lease) lessee's
                  prohibition on accounting services or consulting services on
                  the 10th floor of the Building survives."

                  (b)   ATM. The following provisions shall be deemed added to
                        the Lease. Tenant shall have the right to maintain the
                        existing one (1) automatic teller machine ("ATM") and
                        one (1) night depository "NIGHT DEPOSITORY" in the
                        Building, accessible from the exterior of the Building
                        which ATM and Night Depository shall be subject to all
                        the terms and conditions of the Lease (including,
                        without limitation, the Guaranty), except as noted
                        below.

                        (i)   ATM/Night Depository Area. The area (the "ATM /
                              NIGHT DEPOSITORY AREA") within 3 feet of the ATM
                              and Night Depository, as such ATM and Night
                              Depository are shown on EXHIBIT A-5, shall be
                              deemed to comprise a portion of the Premises, as
                              defined in the Lease, for the purposes of Tenant's
                              insurance obligations under section 14 of the
                              Lease.

                        (ii)  Permitted Use. With respect to the ATM / Night
                              Depository Area only, the Permitted Use, as
                              defined in the Lease, is modified to mean the
                              operation of (a) an ATM: dispensing cash,
                              processing withdrawals, deposits, transfers and
                              advances, facilitating inquiries and requests
                              about a user's account, and such other
                              transactions as Landlord may permit in Landlord's
                              sole and absolute discretion, and for no other use
                              or purpose whatsoever, and (b) a Night Depository
                              accepting deposits.

                        (iii) As-Is Condition. Landlord leases the ATM / Night
                              Depository Area to Tenant and Tenant leases the
                              ATM / Night Depository Area from Landlord in as-is
                              condition and configuration. Tenant agrees that
                              Landlord has made no representations or warranties
                              about the ATM / Night Depository Area, including,
                              but not limited to representations about
                              installation, signage, utility connections and
                              availability (if applicable), and security.

                        (iv)  Signage, Appearance. Signage for the ATM and/or
                              Night Depository, if any, shall be subject to
                              Landlord's prior approval in accordance with
                              Section (x) below. Tenant shall keep the ATM and
                              Night Depository in good operating order, and
                              shall at all times keep the ATM, Night Depository,
                              and ATM / Night Depository Area in a neat, clean
                              and sanitary condition to the reasonable
                              satisfaction of Landlord.

                        (v)   Electrical Services. Landlord agrees to furnish
                              Tenant electricity to the ATM / Night Depository
                              Area only in accordance with, and subject to the
                              terms and conditions

                                        2
<PAGE>

                               in the Lease. Landlord's failure to furnish, or
                               any interruption or termination of services due
                               to the application of Laws, the failure of any
                               equipment, the performance of repairs,
                               improvements or alterations, or the occurrence of
                               any event or cause beyond the reasonable control
                               of Landlord shall not render Landlord liable to
                               Tenant, constitute a constructive eviction of
                               Tenant, give rise to an abatement of Rent nor
                               relieve Tenant from the obligation to fulfill any
                               covenant or agreement. Electricity used by Tenant
                               in the ATM / Night Depository Area shall, at
                               Landlord's option, be paid for by Tenant by
                               either a separate charge payable by Tenant to
                               Landlord within 30 days after billing by
                               Landlord, or by separate charge billed by the
                               applicable utility company and payable directly
                               by Tenant. Tenant's use of electrical service for
                               the ATM / Night Depository Area shall not exceed,
                               either in voltage, rated capacity, use beyond
                               Normal Business Hours or overall load, that which
                               Landlord deems to be standard for the Building.

                        (vi)   Ownership of Improvement Repairs. All
                               improvements to the ATM and Night Depository in
                               the ATM / Night Depository Area shall be owned by
                               Tenant. Tenant shall, at its sole cost and
                               expense, promptly perform all maintenance and
                               repairs to the ATM and Night Depository and shall
                               keep the same in good condition and repair.
                               Tenant shall not make alterations, additions or
                               improvements to the ATM / Night Depository Area
                               without first obtaining the written consent of
                               Landlord in accordance with Section 9.03 of the
                               Lease in each instance, which consent may be
                               withheld at Landlord's sole and absolute
                               discretion.

                        (vii)  Indemnification. Except to the extent caused by
                               the negligence or willful misconduct of Landlord
                               or any Landlord Related Parties, Tenant shall
                               indemnify, defend and hold Landlord and Landlord
                               Related Parties harmless against and from all
                               Losses, which may be imposed upon, incurred by or
                               asserted against Landlord or any of the Landlord
                               Related Parties by any third party and arising
                               out of or in connection with any damage or injury
                               occurring as a result of or in connection with
                               the existence or use of the ATM or the Night
                               Depository.

                        (viii) Assignment and Subletting. Tenant shall not
                               effect a Transfer of the ATM / Night Depository
                               Area separate or apart from the Transfer of the
                               Premises, without the prior written consent of
                               Landlord, which consent may be withheld at
                               Landlord's sole and absolute discretion.

                        (ix)   Surrender. At the expiration or earlier
                               termination of the Lease or Tenant's right of
                               possession, or in the event Tenant elects to
                               sooner surrender the ATM / Night Depository Area,
                               Tenant, at Tenant's sole cost, shall remove the
                               ATM structure, the Night Depository structure,
                               its property and all other property from the ATM
                               / Night Depository Area, and quit and surrender
                               the ATM / Night Depository Area to Landlord,
                               after first returning them to good order,
                               condition and repair to Landlord's reasonable
                               satisfaction, including, without limitation,
                               replacement of any glass panels removed from the
                               exterior wall of the Building/Premises as part of
                               the installation of the ATM and/or Night
                               Depository. If Tenant fails to do so within 30
                               days after written notice, (a) Landlord may deem
                               all or any part of Tenant's Property to be
                               abandoned, and title to Tenant's Property shall
                               be deemed to be immediately vested in Landlord,
                               and (b) Landlord may perform such work as may be
                               required to return the ATM / Night

                                       3
<PAGE>

                              Depository area to such good order, condition and
                              repair at Tenant's expense.

                        (x)   Signs and Advertising. Tenant shall not place or
                              permit to be placed on the exterior of the
                              Premises or the door, window or roof, within any
                              display window space or within 5 feet behind the
                              entry to the Premises or otherwise visible from
                              outside the Building or the Common Area, any sign,
                              decoration, lettering, advertising matter or
                              descriptive material without Landlord's prior
                              written approval, which shall not be unreasonably
                              withheld or delayed, except that Tenant may
                              utilize such material within the Premises on a
                              temporary basis to advertise special sales or
                              promotional events without Landlord's approval
                              provided that such material is professionally
                              made, in good taste and is not taped to any window
                              of the Premises. Tenant shall submit to Landlord
                              reasonably detailed drawings of its proposed signs
                              (other than such temporary signs described in the
                              preceding sentence) for review and approval by
                              Landlord prior to utilizing same. All signs,
                              awnings, canopies, decorations, lettering,
                              advertising matter or other items used by Tenant
                              shall conform to the standards of design, motif,
                              and decor established by Landlord for the Building
                              from time to time and shall be insured and
                              maintained at all times by Tenant in good
                              condition, operating order and repair. Flashing
                              signs, credit card signs and hand lettered signs
                              visible from outside the Building or the Common
                              Areas are prohibited. Landlord shall have the
                              right, without notice to Tenant and without any
                              liability for damage to the Premises reasonably
                              caused thereby, to remove any items displayed or
                              affixed in or to the Premises which Landlord
                              determines to be in violation of the provisions of
                              this section. If any damage is done to Tenant's
                              signs, Tenant shall commence to repair same within
                              5 days after such damage occurs, and upon Tenant's
                              failure to commence the repair work within said 5
                              day period and to diligently prosecute the same to
                              completion, Landlord may, after notice to Tenant,
                              repair such damage and Tenant shall pay Landlord,
                              as additional Rent upon demand, Landlord's costs
                              and expenses in connection therewith.

            6.    Parking. Upon the addition of Suite 150 to the Premises,
                  Tenant shall lease from Landlord an additional four (4)
                  Unreserved Spaces (defined in Section 2.(a) below).

      C.    Termination of Suite 900 Lease. Pursuant to the provisions of a
            Lease Termination Agreement in the form of EXHIBIT I attached to the
            Lease entered into concurrently with the parties' mutual execution
            and delivery of this Lease, the Suite 900 Lease will be terminated
            effective as of Tenant's occupancy of Suite 100.

2.    PARKING.

      A.    During the initial Term, Tenant shall lease from Landlord, and
            Landlord agrees to lease to Tenant, a total of ten (10) unreserved
            parking spaces (the "Unreserved Spaces") and nine (9) reserved
            spaces (the "Reserved Spaces") (the Unreserved Spaces and the
            Reserved Spaces being collectively referred to herein as the
            "Spaces") in the Building garage (the "Parking Facility") for the
            use of Tenant and its employees; six (6) of the Reserved Spaces
            shall be marked as reserved for Tenant's customers and will be
            located near the entry to the Parking Facility, as described in
            EXHIBIT F-1 attached hereto; three (3) of the Reserved Spaces will
            be marked as reserved for Umpqua Bank (or successor thereto). Tenant
            shall not have the right to lease or otherwise use more than the
            number of reserved and unreserved Spaces set forth above. As
            described in Sections 1.B.5 above, 5.B.5 and 6.B.5 below, as used
            when Tenant occupies each of Suite 150, the First Must Take Space
            and the Second Must Take Space (or any other additional Space in the
            Building occupied by Tenant), Tenant will be

                                       4
<PAGE>

            entitled to lease additional Spaces in the Parking Facility on the
            basis of .75 Unreserved Spaces for each 1,000 rentable square foot
            added to the Premises.

      B.    During the initial Term, Tenant shall pay to Landlord, as Additional
            Rent in accordance with Section 4 of the Lease, the sum of (i)
            $185.00 per month, plus applicable tax thereon, if any, for each
            Unreserved Space and (ii) $225.00 per month, plus additional tax
            therein, for each Reserved Space, as such rates may be adjusted from
            time-to-time to reflect the then current rates for parking in the
            Parking Facility. No deductions or allowances shall be made for days
            when Tenant or any of its employees does not utilize the Parking
            Facility or for Tenant utilizing less than all of the Spaces.

      C.    Except for Reserved Spaces and areas designated by Landlord for
            reserved parking, all parking in the Parking Facility shall be on an
            unreserved, first-come, first-served basis.

      D.    Landlord shall not be responsible for money, jewelry, automobiles or
            other personal property lost in or stolen from the Parking Facility
            regardless of whether such loss or theft occurs when the Parking
            Facility or any areas therein are locked or otherwise secured.
            Except as caused by the negligence or willful misconduct of Landlord
            and without limiting the terms of the preceding sentence, Landlord
            shall not be liable for any loss, injury or damage to persons using
            the Parking Facility or automobiles or other property therein, it
            being agreed that, to the fullest extent permitted by law, the use
            of the Spaces shall be at the sole risk of Tenant and its employees.

      E.    Landlord shall have the right from time to time to designate the
            location of the Spaces (other than the Reserved Spaces for Tenant's
            customers, which shall be located near the entrance of the Parking
            Facility) and to promulgate reasonable rules and regulations
            regarding the Parking Facility, if any, the Spaces and the use
            thereof, including, but not limited to, rules and regulations
            controlling the flow of traffic to and from various parking areas,
            the angle and direction of parking and the like. Tenant shall comply
            with and cause its employees to comply with all such rules and
            regulations as well as all reasonable additions and amendments
            thereto.

      F.    Tenant shall not store or permit its employees to store any
            automobiles in the Parking Facility without the prior written
            consent of Landlord; however, Tenant may park Tenant's executive
            cars overnight within the Reserved Spaces which are marked for
            Umpqua Bank (or successor thereto). Except for emergency repairs,
            Tenant and its employees shall not perform any work on any
            automobiles while located in the Parking Facility or on the
            Property. If it is necessary for Tenant or its employees to leave an
            automobile in the Parking Facility overnight, Tenant shall provide
            Landlord with prior notice thereof designating the license plate
            number and model of such automobile.

      G.    Landlord shall have the right to temporarily close the Parking
            Facility or certain areas therein in order to perform necessary
            repairs, maintenance and improvements to the Parking Facility or any
            portion thereof; Landlord will use reasonable efforts to schedule
            the performance of any such work on weekends or after Building
            Service Hours. If the Parking Facility is closed for more than two
            (2) days in any thirty (30) day period, then the parking fees
            payable shall be prorated based upon the number of days the Parking
            Facility is open during such thirty (30) day period.

      H.    Tenant shall not assign or sublease any of the Spaces without the
            consent of Landlord which will not be withheld unreasonably if such
            assignment or sublease is in connection with a Transfer carried out
            in accordance with the terms of the Lease (and will not be required
            in the case of a Permitted Transfer). Landlord shall have the right
            to terminate the parking agreement set forth in this Section 2 with
            respect to any Spaces that Tenant subleases or assigns without
            Landlord's consent (other than the sublease or assignment of spaces
            in connection with a Permitted Transfer).

      I.    Landlord may elect to provide parking cards or keys to control
            access to the Parking Facility. In such event, Tenant shall be
            provided with one card or key for each Space that Tenant is leasing
            hereunder, provided that Landlord shall have

                                       5
<PAGE>

            the right to require Tenant or its employees to place a deposit on
            such access cards or keys and to pay a fee for any lost or damaged
            cards or keys.

      J.    Landlord hereby reserves the right to enter into a management
            agreement or lease with an entity for all or any portion of the
            Parking Facility (a "Parking Facility Operator"). In such event,
            Tenant, upon request of Landlord, shall enter into a parking
            agreement with such Parking Facility Operator and pay such Parking
            Facility Operator the monthly charge established hereunder, and
            Landlord shall have no liability for claims arising through acts or
            omissions of any Parking Facility Operator unless caused by
            Landlord's negligence or willful misconduct. It is understood and
            agreed that the identity of any Parking Facility Operator may change
            from time to time during the Term. In connection therewith, any
            parking lease or agreement entered into between Tenant and any
            Parking Facility Operator shall be freely assignable by such Parking
            Facility Operator or any successors thereto.

3.    FIRST RENEWAL OPTION.

      A.    Grant of Option; Conditions. Tenant shall have the right to extend
            the Term (the "First Renewal Option") for one additional period of
            five (5) years commencing on the day following the Termination Date
            of the initial Term and ending on the fifth (5th) anniversary of the
            Termination Date (the "First Renewal Term"), if:

            1.    Landlord receives notice of exercise ("Initial Renewal
                  Notice") not less than 12 full calendar months prior to the
                  expiration of the initial Term and not more than 15 full
                  calendar months prior to the expiration of the initial Term;
                  and

            2.    Tenant is not in default under the Lease beyond any applicable
                  cure periods at the time that Tenant delivers its Initial
                  Renewal Notice or at the time Tenant delivers its Binding
                  Notice (as defined below); and

            3.    [INTENTIONALLY OMITTED]

            4.    The Lease has not been assigned (other than pursuant to a
                  Permitted Transfer) prior to the date that Tenant delivers its
                  Initial Renewal Notice or prior to the date Tenant delivers
                  its Binding Notice.

      B.    Terms Applicable to Premises During First Renewal Term.

            1.    The initial Base Rent rate per rentable square foot for the
                  Premises during the First Renewal Term shall equal the
                  Prevailing Market (hereinafter defined) rate per rentable
                  square foot for the Premises. Base Rent during the First
                  Renewal Term shall increase, if at all, and shall include a
                  tenant improvement allowance competitive for comparable
                  renewal transactions for Class "A" office buildings in the
                  City of Portland Central Business District ("Renewal
                  Allowance") in accordance with the increases assumed in the
                  determination of Prevailing Market rate. Base Rent
                  attributable to the Premises shall be payable in monthly
                  installments in accordance with the terms and conditions of
                  the Lease.

            2.    Tenant shall pay Additional Rent (i.e. Taxes and Expenses) for
                  the Premises during the First Renewal Term in accordance with
                  the terms of the Lease, and the manner and method in which
                  Tenant reimburses Landlord for Tenant's share of Taxes and
                  Expenses and the Base Year, if any, applicable to such matter,
                  shall be some of the factors considered in determining the
                  Prevailing Market rate for the First Renewal Term.

      C.    Initial Procedure for Determining Prevailing Market. Within 30 days
            after receipt of Tenant's Initial Renewal Notice, Landlord shall
            advise Tenant of the applicable Base Rent rate for the Premises for
            the First Renewal Term including any increases during the First
            Renewal Term, and the amount of the Renewal Allowance ("First
            Renewal Provisions"). Tenant, within 15 days after the date on which
            Landlord advises Tenant of the applicable First Renewal Provisions,
            shall either (i) give Landlord final binding written notice
            ("Binding Notice") of Tenant's exercise of its First Renewal Option,
            or (ii) if Tenant disagrees with Landlord's determination, provide
            Landlord with written notice of rejection (the "Rejection Notice").
            If Tenant fails to provide Landlord with either a Binding Notice or

                                       6
<PAGE>

            Rejection Notice within such 15 day period, Tenant's First Renewal
            Option shall be null and void and of no further force and effect. If
            Tenant provides Landlord with a Binding Notice, Landlord and Tenant
            shall enter into the Renewal Amendment (as defined below) upon the
            terms and conditions set forth herein. If Tenant provides Landlord
            with a Rejection Notice, Landlord and Tenant shall work together in
            good faith to agree upon the Prevailing Market rate for the Premises
            during the First Renewal Term. Upon agreement, Landlord and Tenant
            shall enter into the Renewal Amendment in accordance with the terms
            and conditions hereof. Notwithstanding the foregoing, if Landlord
            and Tenant fail to agree upon the Prevailing Market rate within 30
            days after the date Tenant provides Landlord with the Rejection
            Notice, Tenant, by written notice to Landlord (the "Arbitration
            Notice") within 10 days after the expiration of such 30 day period,
            shall have the right to have the Prevailing Market rate determined
            in accordance with the arbitration procedures described in Section
            3.D below. If Landlord and Tenant fail to agree upon the Prevailing
            Market rate within the 30 day period described and Tenant fails to
            timely exercise its right to arbitrate, Tenant's First Renewal
            Option shall be deemed to be null and void and of no further force
            and effect.

      D.    Arbitration Procedure.

            1.    If Tenant provides Landlord with an Arbitration Notice,
                  Landlord and Tenant, within 5 days after the date of the
                  Arbitration Notice, shall each simultaneously submit to the
                  other, in a sealed envelope, its good faith estimate of the
                  Prevailing Market rate for the Premises during the First
                  Renewal Term (collectively referred to as the "Estimates"). If
                  the higher of such Estimates is not more than 105% of the
                  lower of such Estimates, then Prevailing Market rate shall be
                  the average of the two Estimates. If the Prevailing Market
                  rate is not resolved by the exchange of Estimates, then,
                  within 7 days after the exchange of Estimates, Landlord and
                  Tenant shall each select an appraiser to determine which of
                  the two Estimates most closely reflects the Prevailing Market
                  rate for the Premises during the First Renewal Term. Each
                  appraiser so selected shall be certified as an MAI appraiser
                  or as an ASA appraiser and shall have had at least 5 years
                  experience within the previous 10 years as a real estate
                  appraiser working in Portland, Oregon, with working knowledge
                  of current rental rates and practices. For purposes hereof, an
                  "MAI" appraiser means an individual who holds an MAI
                  designation conferred by, and is an independent member of, the
                  American Institute of Real Estate Appraisers (or its successor
                  organization, or in the event there is no successor
                  organization, the organization and designation most similar),
                  and an "ASA" appraiser means an individual who holds the
                  Senior Member designation conferred by, and is an independent
                  member of, the American Society of Appraisers (or its
                  successor organization, or, in the event there is no successor
                  organization, the organization and designation most similar).
                  Any Estimate will include assumptions regarding the increase
                  (if any) in Base Rent payable during the course of the First
                  Renewal Term, as described in Section 3.B.1 above.

            2.    Upon selection, Landlord's and Tenant's appraisers shall work
                  together in good faith to agree upon which of the two
                  Estimates most closely reflects the Prevailing Market rate for
                  the Premises. The Estimate chosen by such appraisers shall be
                  binding on both Landlord and Tenant as the Base Rent rate for
                  the Premises during the First Renewal Term. If either Landlord
                  or Tenant fails to appoint an appraiser within the 7 day
                  period referred to above, the appraiser appointed by the other
                  party shall be the sole appraiser for the purposes hereof. If
                  both Landlord and Tenant fail to select an appraiser within
                  such 7 day period, the 7 day period shall be extended until
                  such time as one of the parties selects an appraiser and gives
                  notice thereof to the other party and such other party shall
                  have 5 days thereafter to select its appraiser. If the two
                  appraisers cannot agree upon which of the two Estimates most
                  closely reflects the Prevailing Market within 20 days after
                  their appointment, then, within 10 days after the expiration
                  of such 20 day period, the two appraisers shall select a third
                  appraiser meeting the aforementioned criteria. Once the third
                  appraiser (i.e. arbitrator) has been selected as provided for
                  above, then, as soon thereafter as practicable but in any case
                  within 14 days, the arbitrator shall make his determination of
                  which of the two Estimates

                                       7
<PAGE>

                  most closely reflects the Prevailing Market rate and such
                  Estimate shall be binding on both Landlord and Tenant as the
                  Base Rent rate for the Premises. If the arbitrator believes
                  that expert advice would materially assist him, he may retain
                  one or more qualified persons to provide such expert advice.
                  The parties shall share equally in the costs of the arbitrator
                  and of any experts retained by the arbitrator. Any fees of any
                  appraiser, counsel or experts engaged directly by Landlord or
                  Tenant, however, shall be borne by the party retaining such
                  appraiser, counsel or expert.

            3.    If the Prevailing Market rate has not been determined by the
                  commencement date of the First Renewal Term, Tenant shall pay
                  Base Rent upon the terms and conditions in effect during the
                  last month of the initial Term for the Premises until such
                  time as the Prevailing Market rate has been determined. Upon
                  such determination, the Base Rent for the Premises shall be
                  retroactively adjusted to the commencement of the First
                  Renewal Term for the Premises. If such adjustment results in
                  an underpayment of Base Rent by Tenant, Tenant shall pay
                  Landlord the amount of such underpayment within 30 days after
                  the determination thereof. If such adjustment results in an
                  overpayment of Base Rent by Tenant, Landlord shall credit such
                  overpayment against the next installment of Base Rent due
                  under the Lease and, to the extent necessary, any subsequent
                  installments, until the entire amount of such overpayment has
                  been credited against Base Rent.

      E.    Renewal Amendment. If Tenant is entitled to and properly exercises
            its Renewal Option, Landlord shall prepare an amendment (the
            "Renewal Amendment") to reflect changes in the Base Rent, Term,
            Termination Date and other appropriate terms. The Renewal Amendment
            shall be sent to Tenant within a reasonable time after receipt of
            the Binding Notice and Tenant shall execute and return the Renewal
            Amendment to Landlord within 15 days after Tenant's receipt of same,
            but, upon final determination of the Prevailing Market rate
            applicable during the Renewal Term as described herein, an otherwise
            valid exercise of the Renewal Option shall be fully effective
            whether or not the Renewal Amendment is executed.

      F.    Prevailing Market. For purposes hereof, "Prevailing Market" shall
            mean the arms length fair market annual rental rate per rentable
            square foot, as well as the tenant improvement allowance which is
            provided to tenants, under renewal leases and amendments entered
            into on or about the date on which the Prevailing Market is being
            determined hereunder for space comparable to the Premises in the
            Building and other Class "A" office buildings in the City of
            Portland Central Business District and will include a Renewal
            Allowance. The determination of Prevailing Market shall take into
            account any material economic differences between the terms of this
            Lease and any comparison lease or amendment, such as rent
            abatements, construction costs and allocations and other concessions
            and the manner, if any, in which the landlord under any such lease
            is reimbursed for operating expenses and taxes.

4.    SECOND RENEWAL OPTION.

      A.    Grant of Option; Conditions. Tenant shall have the right to extend
            the Term (the "Second Renewal Option") for one additional period of
            five (5) years commencing on the day following the Termination Date
            of the First Renewal Term and ending on the fifth (5th) anniversary
            of the Termination Date (the "Second Renewal Term"), if:

            1.    Landlord receives notice of exercise ("Initial Renewal
                  Notice") not less than 12 full calendar months prior to the
                  expiration of the First Renewal Term and not more than 15 full
                  calendar months prior to the expiration of the First Renewal
                  Term; and

            2.    Tenant is not in default under the Lease beyond any applicable
                  cure periods at the time that Tenant delivers its Initial
                  Renewal Notice or at the time Tenant delivers its Binding
                  Notice (as defined below); and

            3.    [INTENTIONALLY OMITTED]

                                       8
<PAGE>

            4,    The Lease has not been assigned (other than pursuant to a
                  Permitted Transfer) prior to the date that Tenant delivers its
                  Initial Renewal Notice or prior to the date Tenant delivers
                  its Binding Notice.

      B.    Terms Applicable to Premises During Second Renewal Term.

            1.    The initial Base Rent rate per rentable square foot for the
                  Premises during the Second Renewal Term shall equal the
                  Prevailing Market (hereinafter defined) rate per rentable
                  square foot for the Premises. Base Rent during the Second
                  Renewal Term shall increase, if at all, and shall include a
                  tenant improvement allowance competitive for comparable
                  renewal transactions for Class "A" office buildings in the
                  City of Portland Central Business District ("Renewal
                  Allowance") in accordance with the increases assumed in the
                  determination of Prevailing Market rate. Base Rent
                  attributable to the Premises shall be payable in monthly
                  installments in accordance with the terms and conditions of
                  the Lease.

            2.    Tenant shall pay Additional Rent (i.e. Taxes and Expenses) for
                  the Premises during the Second Renewal Term in accordance with
                  the terms of the Lease, and the manner and method in which
                  Tenant reimburses Landlord for Tenant's share of Taxes and
                  Expenses and the Base Year, if any, applicable to such matter,
                  shall be some of the factors considered in determining the
                  Prevailing Market rate for the Second Renewal Term.

      C.    Initial Procedure for Determining Prevailing Market. Within 30 days
            after receipt of Tenant's Initial Renewal Notice, Landlord shall
            advise Tenant of the applicable Base Rent rate for the Premises for
            the Second Renewal Term including any increases during the Second
            Renewal Term, and the amount of the Renewal Allowance ("Second
            Renewal Provisions"). Tenant, within 15 days after the date on which
            Landlord advises Tenant of the applicable Second Renewal Provisions,
            shall either (i) give Landlord final binding written notice
            ("Binding Notice") of Tenant's exercise of its Second Renewal
            Option, or (ii) if Tenant disagrees with Landlord's determination,
            provide Landlord with written notice of rejection (the "Rejection
            Notice"). If Tenant fails to provide Landlord with either a Binding
            Notice or Rejection Notice within such 15 day period, Tenant's
            Second Renewal Option shall be null and void and of no further force
            and effect. If Tenant provides Landlord with a Binding Notice,
            Landlord and Tenant shall enter into the Renewal Amendment (as
            defined below) upon the terms and conditions set forth herein. If
            Tenant provides Landlord with a Rejection Notice, Landlord and
            Tenant shall work together in good faith to agree upon the
            Prevailing Market rate for the Premises during the Second Renewal
            Term. Upon agreement, Landlord and Tenant shall enter into the
            Renewal Amendment in accordance with the terms and conditions
            hereof. Notwithstanding the foregoing, if Landlord and Tenant fail
            to agree upon the Prevailing Market rate within 30 days after the
            date Tenant provides Landlord with the Rejection Notice, Tenant, by
            written notice to Landlord (the "Arbitration Notice") within 10 days
            after the expiration of such 30 day period, shall have the right to
            have the Prevailing Market rate determined in accordance with the
            arbitration procedures described in Section 4.D below. If Landlord
            and Tenant fail to agree upon the Prevailing Market rate within the
            30 day period described and Tenant fails to timely exercise its
            right to arbitrate, Tenant's Second Renewal Option shall be deemed
            to be null and void and of no further force and effect.

      D.    Arbitration Procedure.

            1.    If Tenant provides Landlord with an Arbitration Notice,
                  Landlord and Tenant, within 5 days after the date of the
                  Arbitration Notice, shall each simultaneously submit to the
                  other, in a sealed envelope, its good faith estimate of the
                  Prevailing Market rate for the Premises during the Second
                  Renewal Term (collectively referred to as the "Estimates"). If
                  the higher of such Estimates is not more than 105% of the
                  lower of such Estimates, then Prevailing Market rate shall be
                  the average of the two Estimates. If the Prevailing Market
                  rate is not resolved by the exchange of Estimates, then,
                  within 7 days after the exchange of Estimates, Landlord and
                  Tenant shall each select an appraiser to determine which of
                  the two Estimates most closely reflects the Prevailing Market
                  rate for the Premises during the Second Renewal Term. Each
                  appraiser so selected shall be certified as an MAI appraiser
                  or as an ASA appraiser and shall have had at least 5

                                       9
<PAGE>

                  years experience within the previous 10 years as a real estate
                  appraiser working in Portland, Oregon, with working knowledge
                  of current rental rates and practices. For purposes hereof, an
                  "MAI" appraiser means an individual who holds an MAI
                  designation conferred by, and is an independent member of, the
                  American Institute of Real Estate Appraisers (or its successor
                  organization, or in the event there is no successor
                  organization, the organization and designation most similar),
                  and an "ASA" appraiser means an individual who holds the
                  Senior Member designation conferred by, and is an independent
                  member of, the American Society of Appraisers (or its
                  successor organization, or, in the event there is no successor
                  organization, the organization and designation most similar).
                  Any Estimate will include assumptions regarding the increase
                  (if any) in Base Rent payable during the course of the Second
                  Renewal Term, as described in Section 4.B.1 above.

            2.    Upon selection, Landlord's and Tenant's appraisers shall work
                  together in good faith to agree upon which of the two
                  Estimates most closely reflects the Prevailing Market rate for
                  the Premises. The Estimate chosen by such appraisers shall be
                  binding on both Landlord and Tenant as the Base Rent rate for
                  the Premises during the Second Renewal Term. If either
                  Landlord or Tenant fails to appoint an appraiser within the 7
                  day period referred to above, the appraiser appointed by the
                  other party shall be the sole appraiser for the purposes
                  hereof. If both Landlord and Tenant fail to select an
                  appraiser within such 7 day period, the 7 day period shall be
                  extended until such time as one of the parties selects an
                  appraiser and gives notice thereof to the other party and such
                  other party shall have 5 days thereafter to select its
                  appraiser. If the two appraisers cannot agree upon which of
                  the two Estimates most closely reflects the Prevailing Market
                  within 20 days after their appointment, then, within 10 days
                  after the expiration of such 20 day period, the two appraisers
                  shall select a third appraiser meeting the aforementioned
                  criteria. Once the third appraiser (i.e. arbitrator) has been
                  selected as provided for above, then, as soon thereafter as
                  practicable but in any case within 14 days, the arbitrator
                  shall make his determination of which of the two Estimates
                  most closely reflects the Prevailing Market rate and such
                  Estimate shall be binding on both Landlord and Tenant as the
                  Base Rent rate for the Premises. If the arbitrator believes
                  that expert advice would materially assist him, he may retain
                  one or more qualified persons to provide such expert advice.
                  The parties shall share equally in the costs of the arbitrator
                  and of any experts retained by the arbitrator. Any fees of any
                  appraiser, counsel or experts engaged directly by Landlord or
                  Tenant, however, shall be borne by the party retaining such
                  appraiser, counsel or expert.

            3.    If the Prevailing Market rate has not been determined by the
                  commencement date of the Second Renewal Term, Tenant shall pay
                  Base Rent upon the terms and conditions in effect during the
                  last month of the initial Term for the Premises until such
                  time as the Prevailing Market rate has been determined. Upon
                  such determination, the Base Rent for the Premises shall be
                  retroactively adjusted to the commencement of the Second
                  Renewal Term for the Premises. If such adjustment results in
                  an underpayment of Base Rent by Tenant, Tenant shall pay
                  Landlord the amount of such underpayment within 30 days after
                  the determination thereof. If such adjustment results in an
                  overpayment of Base Rent by Tenant, Landlord shall credit such
                  overpayment against the next installment of Base Rent due
                  under the Lease and, to the extent necessary, any subsequent
                  installments, until the entire amount of such overpayment has
                  been credited against Base Rent.

      E.    Renewal Amendment. If Tenant is entitled to and properly exercises
            its Renewal Option, Landlord shall prepare an amendment (the "Second
            Renewal Amendment") to reflect changes in the Base Rent, Term,
            Termination Date and other appropriate terms. The Renewal Amendment
            shall be sent to Tenant within a reasonable time after receipt of
            the Binding Notice and Tenant shall execute and return the Renewal
            Amendment to Landlord within 15 days after Tenant's receipt of same,
            but, upon final determination of the Prevailing Market rate
            applicable during the Second Renewal Term as described herein, an

                                      10
<PAGE>

            otherwise valid exercise of the Second Renewal Option shall be fully
            effective whether or not the Renewal Amendment is executed.

      F.    Prevailing Market. For purposes hereof, "Prevailing Market" shall
            mean the arms length fair market annual rental rate per rentable
            square foot, as well as the tenant improvement allowance which is
            provided to tenants, under renewal leases and amendments entered
            into on or about the date on which the Prevailing Market is being
            determined hereunder for space comparable to the Premises in the
            Building and other Class "A" office buildings in the City of
            Portland Central Business District and will include a Renewal
            Option. The determination of Prevailing Market shall take into
            account any material economic differences between the terms of this
            Lease and any comparison lease or amendment, such as rent
            abatements, construction costs and other concessions and the manner,
            if any, in which the landlord under any such lease is reimbursed for
            operating expenses and taxes.

5.    FIRST MUST-TAKE SPACE.

      A.    Generally. Tenant hereby leases from Landlord and Landlord hereby
            leases to Tenant the 17,164 square feet of rentable area described
            as Suite No. 1400 on the 14th floor of the Building and shown on
            EXHIBIT A-3 attached to the Lease (the "First Must-Take Space"). The
            Term with respect to the First Must-Take Space shall commence on May
            1, 2006 and will terminate on the Termination Date. Effective as of
            the First Must-Take Space Commencement Date, the First Must-Take
            Space shall be deemed to be a part of the Premises. Notwithstanding
            the foregoing to the contrary, the First Must-Take Space
            Commencement Date shall be delayed to the extent that Landlord fails
            to deliver possession of the First Must-Take Space for any reason,
            including but not limited to, holding over by prior occupants.
            However, any delay in the First Must-Take Space Commencement Date
            shall not subject Landlord to any liability for any loss or damage
            resulting therefrom. If the First Must-Take Space Commencement Date
            is delayed, the Termination Date shall not be similarly extended.

      B.    Terms. The First Must-Take Space is leased by Tenant pursuant to all
            of the terms and conditions of the Lease, except that the financial
            terms and conditions (i.e., Base Rent and Additional Rent) for the
            First Must-Take Space shall be as follows:

            1.    Base Rent. Tenant shall pay Landlord Base Rent for the First
                  Must-Take Space as follows:

<TABLE>
<CAPTION>
                                                  ANNUAL RATE         MONTHLY
               PERIOD                           PER SQUARE FOOT      BASE RENT
------------------------------------            ---------------      ----------
<S>                                             <C>                  <C>
May 1, 2006 - November 30, 2006                      $22.50          $32,182.50

December 1, 2006 - November 30, 2008                 $23.40          $33,469.80

December 1, 2008 - November 30, 2010                 $24.34          $34,814.31

December 1, 2010 - November 30, 2012                 $25.31          $36,201.74

December 1, 2012 - November 30, 2014                 $26.32          $37,646.37

December 1, 2014 - November 30, 2016                 $27.37          $39,148.22
</TABLE>

                  Landlord and Tenant acknowledge that the foregoing schedule is
                  based on the assumption that the First Must-Take Commencement
                  Date on the First Must-Take Space is May 1, 2006. If the First
                  Must-Take Space Commencement Date is other than May 1, 2006,
                  the schedule set forth above with respect to the payment of
                  any installment(s) of Base Rent for the First Must-Take Space
                  shall be appropriately adjusted on a per diem basis to reflect
                  the actual First Must-Take Space Commencement Date (dates of
                  adjustment in the Base Rent rate will not be changed, however)

                                      11
<PAGE>

                  and the parties will enter into a the commencement letter
                  agreement, to be prepared by Landlord, in the form attached as
                  EXHIBIT D to the Lease.

            2.    Additional Rent. Effective as of the First Must-Take Space
                  Commencement Date, Tenant shall pay Additional Rent (i.e.,
                  Expenses and Taxes) for the First Must-Take Space on the same
                  terms and conditions set forth in the Lease, provided that
                  effective as of the First Must-Take Space Commencement Date,
                  Tenant's Pro Rata Share shall increase by 6.32032%, account
                  for the addition of the First Must-Take Space.

            3.    Delay in Delivery. Notwithstanding any of the foregoing to the
                  contrary, if Tenant takes possession of the First Must-Take
                  Space prior to the First Must-Take Space Commencement Date for
                  any reason whatsoever (other than the performance of work in
                  the First Must-Take Space with Landlord's prior approval, not
                  to be unreasonably withheld), such possession shall be subject
                  to all the terms and conditions of the Lease, and Tenant shall
                  pay Base Rent and Additional Rent as applicable to the First
                  Must-Take Space to Landlord on a per diem basis at the initial
                  rate set forth in Section 5.B.1 above for each day of
                  occupancy prior to the First Must-Take Space Commencement
                  Date.

            4.    Improvements to Must-Take Space. Initial Improvements to the
                  First Must-Take Space will be constructed by Tenant, pursuant
                  to EXHIBIT C attached to the Lease.

            5.    Parking. Effective as of the First Must-Take Space
                  Commencement Date, Landlord shall lease to Tenant, in addition
                  to the Spaces being leased pursuant to Section 2 above, 13
                  Unreserved Spaces in the Parking Facility for the use of
                  Tenant and its employees. The Unreserved Spaces shall be
                  subject to the terms and conditions of Section 2 and this
                  EXHIBIT F.

6.    SECOND MUST-TAKE SPACE.

      A.    Generally. Subject to the provisions of Section 7.C below, Tenant
            hereby leases from Landlord and Landlord hereby leases to Tenant an
            additional floor in the Building, to be identified by Landlord on or
            before April 1, 2009 (the "Second Must-Take Space"). Landlord will
            use reasonable efforts to designate a floor that is located within
            two (2) floors of either the 12th or the 14th floors of the Building
            as the Second Must-Take Space. The Second Must-Take Space shall
            consist of approximately 17,164 rentable square feet (unless
            Landlord designates the nineteenth (19th) floor of the Building as
            the Second Must-Take Space, in which case the Second Must-Take Space
            shall consist of 14,777 rentable square feet). The Term with respect
            to the Second Must-Take Space shall commence on April 1, 2011 and
            will terminate on the Termination Date. Effective as of the Second
            Must-Take Space Commencement Date, the Second Must-Take Space shall
            be deemed to be a part of the Premises. Notwithstanding the
            foregoing to the contrary, the Second Must-Take Space Commencement
            Date shall be delayed to the extent that Landlord fails to deliver
            possession of the Second Must-Take Space for any reason, including
            but not limited to, holding over by prior occupants. However, any
            delay in the Second Must-Take Space Commencement Date shall not
            subject Landlord to any liability for any loss or damage resulting
            therefrom. If the Second Must-Take Space Commencement Date is
            delayed, the Termination Date shall not be similarly extended.

      B.    Terms. The Second Must-Take Space is leased by Tenant pursuant to
            all of the terms and conditions of the Lease, except that the
            financial terms and conditions (i.e., Base Rent and Additional Rent)
            for the Second Must-Take Space shall be as follows:

                                      12
<PAGE>

            1.    Base Rent. Tenant shall pay Landlord Base Rent for the Second
                  Must-Take Space as follows:

<TABLE>
<CAPTION>
                                               ANNUAL RATE
               PERIOD                        PER SQUARE FOOT
------------------------------------         ---------------
<S>                                          <C>
  April 1,  2011 - November 30, 2012              $25.31
December 1, 2012 - November 30, 2014              $26.32
December 1, 2014 - November 30, 2016              $27.37
</TABLE>

                  Landlord and Tenant acknowledge that the foregoing schedule is
                  based on the assumption that the Second Must-Take Commencement
                  Date on the Second Must-Take Space is April 1, 2011. If the
                  Second Must-Take Space Commencement Date is other than April
                  1, 2011, the schedule set forth above with respect to the
                  payment of any installment(s) of Base Rent for the Second
                  Must-Take Space shall be appropriately adjusted on a per diem
                  basis to reflect the actual Must-Take Space Commencement Date
                  (dates of adjustment in the Base Rent rate will not be
                  changed, however) and the parties will enter into a the
                  commencement letter agreement in the form attached as EXHIBIT
                  D to be prepared by Landlord.

            2.    Additional Rent. Effective as of the Second Must-Take Space
                  Commencement Date, Tenant shall pay Additional Rent (i.e.
                  Expenses and Taxes) for the Second Must-Take Space on the same
                  terms and conditions set forth in the Lease, provided that
                  effective as of the Second Must-Take Space Commencement Date,
                  Tenant's Pro Rata Share shall increase to account for the
                  addition of the Second Must-Take Space.

            3.    Delay in Delivery. Notwithstanding any of the foregoing to the
                  contrary, if Tenant takes possession of the Second Must-Take
                  Space prior to the Second Must-Take Space Commencement Date
                  for any reason whatsoever (other than the performance of work
                  in the Second Must-Take Space with Landlord's prior approval,
                  not to be unreasonably withheld), such possession shall be
                  subject to all the terms and conditions of this Lease, and
                  Tenant shall pay Base Rent and Additional Rent as applicable
                  to the Second Must-Take Space to Landlord on a per diem basis
                  for each day of occupancy prior to the Second Must-Take Space
                  Commencement Date.

            4.    Improvements to Must-Take Space. Tenant shall be entitled to
                  receive an improvement allowance (the "Second Must Take
                  Allowance") equal to $22.00 per square foot of rentable area
                  of the Second Must Take Space. Additionally, Landlord agrees,
                  at Landlord's sole cost and expense, to upgrade the ceiling on
                  the floor in which the Second Must-Take Space is located, to a
                  then-current "Building-standard" ceiling (including the
                  performance of seismic upgrades to sprinkler and HVAC support,
                  provided that if Tenant elects to undertake the ceiling work,
                  Tenant shall be entitled to an increase in the Must-Take
                  Allowance in the amount of $6.05,

            5.    Parking. Effective as of the Second Must-Take Space
                  Commencement Date, Tenant shall lease from Landlord .75
                  Unreserved Spaces in the Parking Facility for every 1,000
                  rentable square feet in the Second Must-Take Space for the use
                  of Tenant and its employees. Said additional Unreserved Spaces
                  shall be subject to the terms and conditions of Section 2
                  above.

      C.    Option to Terminate Obligation to Lease Second Must-Take Space.
            Tenant shall have the right, to be exercised by written notice
            delivered to Landlord on or before October 31, 2009, to rescind
            Tenant's obligation to lease the Second Must-Take Space (the "Second
            Must-Take Termination Option"). If Tenant exercises the Second
            Must-Take Termination Option, Tenant will be obligated to pay a fee
            (the "Second Must-Take Termination Fee") equal to nine (9) months of
            Base Rent which would have been payable with respect to the Second
            Must-Take Space at the rate applicable for the Second Must-Take
            Space as of April 1, 2011 (i.e., $25.31 per rentable square foot per
            annum), subject to reimbursement pursuant to Section 7.C below.
            Notwithstanding the foregoing, the Second Must-Take Termination Fee
            will be subject to retroactive mitigation,

                                      13
<PAGE>

            as follows: If and to the extent that the Second Must-Take Space
            designated by Landlord is occupied by any tenant paying rent during
            the period from the date of Tenant's exercise of the Second
            Must-Take Termination Option through March 31, 2011, then the
            aggregate Base Rent paid by any such tenant (or tenants) of the
            Second Must-Take Space over such period shall be offset against the
            Second Must-Take Termination Fee and paid by Landlord to Tenant (or,
            at Landlord's option, applied against Base Rent next due and payable
            by Tenant under the Lease) as of April 1, 2011; provided, however,
            in no event shall the reduction in the Second Must-Take Termination
            Fee exceed the amount of Base Rent that would otherwise have been
            payable by Tenant for the Second Must-Take Space for a period of
            three (3) months (i.e., in no event, following any such mitigation,
            shall the Second Must-Take Termination Fee equal less than six (6)
            months of Base Rent which would have otherwise been payable with
            respect to the Second Must-Take Space by Tenant).

7.    RIGHTS OF FIRST OFFER.

      A.    Right of First Offer - - Suite 1900.

            1.    Generally. Tenant shall have the one time right of first offer
                  with respect to the 14,777 rentable square feet on the 19th
                  floor of the Building known as Suite 1900 shown on the
                  demising plan attached to the Lease as EXHIBIT A-4 (the "Suite
                  1900 Offering Space"), when the Suite 1900 Offering Space
                  becomes "Available" for Lease. The Suite 1900 Offering Space
                  shall be deemed to be "Available for Lease" as follows: (i) if
                  the Suite 1900 Offering Space is under lease from time to time
                  to third parties, the Suite 1900 Offering Space shall be
                  deemed to be Available for Lease when Landlord has determined
                  that such third party will not extend or renew the term of its
                  lease or enter into a new lease for the Suite 1900 Offering
                  Space, or (ii) if the Offering Suite 1900 Space is not under
                  lease, the Suite 1900 Offering Space shall be deemed to be
                  Available for Lease when Landlord is ready to put such space
                  on the market for lease. Within a reasonable time after
                  Landlord has determined that the Suite 1900 Offering Space is
                  Available for Lease (but prior to leasing the Suite 1900
                  Offering Space to a third party), Landlord shall advise Tenant
                  (the "Advice") of the terms under which Landlord is prepared
                  to lease the Suite 1900 Offering Space to Tenant for the
                  remainder of the Term. Tenant may lease the Suite 1900
                  Offering Space in its entirety only, under such terms, by
                  delivering written notice of exercise to Landlord ("Notice of
                  Exercise") within ten (10) Business Days after the date of the
                  Advice, except that Tenant shall have no such Right of First
                  Offer and Landlord need not provide Tenant with an Advice, if:

                  a.    Tenant is in default under the Lease at the time
                        Landlord would otherwise deliver the Advice; or

                  b.    [INTENTIONALLY OMITTED]

                  c.    the Lease has been assigned (other than to a Permitted
                        Transfer) prior to the date Landlord would otherwise
                        deliver the Advice; or

                  d.    [INTENTIONALLY OMITTED]

                  e.    fifty percent (50%) or more of the Suite 1900 Offering
                        Space is not intended for the exclusive use of Tenant;
                        or

            2.    Terms.

                  a.    If Tenant timely exercises the Right of First Offer
                        granted herein, the term for the Suite 1900 Offering
                        Space shall commence upon the commencement date stated
                        in the Advice and thereupon the Suite 1900 Offering
                        Space shall be considered a part of the Premises,
                        provided that all of the terms stated in the Advice
                        shall govern Tenant's leasing of the Suite 1900 Offering
                        Space and only to the extent that they do not conflict
                        with the Advice, the terms and conditions of the Lease
                        shall apply to the Suite 1900 Offering Space.

                                      14
<PAGE>

                  b.    Tenant shall pay Base Rent and Additional Rent for the
                        Suite 1900 Offering Space in accordance with the terms
                        and conditions of the Advice.

                  c.    The Suite 1900 Offering Space (including improvements,
                        if any) shall be accepted by Tenant in its condition and
                        as-built configuration existing on the earlier of the
                        date Tenant takes possession of the Suite 1900 Offering
                        Space or as of the date the term for the Suite 1900
                        Offering Space commences (provided that Landlord will
                        deliver such space in broom-clean condition and free of
                        claims of possession of third parties), however if the
                        Advice specifies any allowance to be provided by
                        Landlord with respect to the Suite 1900 Offering Space,
                        Tenant may use such allowance to perform initial
                        Alterations in such space.

            3.    Expiration of Right of First Offer. The rights of Tenant
                  hereunder with respect to the Suite 1900 Offering Space shall
                  terminate on the earlier to occur of: (i) November 30, 2014;
                  (ii) Tenant's failure to exercise its Right of First Offer
                  within the ten (10) Business Day period provided in Paragraph
                  7.A.1. above, and (iii) the date Landlord would have provided
                  Tenant an Advice if Tenant had not been in violation of one or
                  more of the conditions set forth in Paragraph 7.A.1. above.
                  Notwithstanding the foregoing, Tenant shall once again have
                  the Right of First Offer with respect to the Suite 1900
                  Offering Space if (i) Tenant was entitled to exercise its
                  Right of First Offer, but failed to provide Landlord with a
                  Notice of Exercise within the ten (10) day period provided in
                  Section 7.A.1 above, and Landlord proposes to lease the Suite
                  1900 Offering Space to a prospective tenant on terms that are
                  substantially different than those set forth in the Advice.
                  For purposes hereof, the terms offered to a prospect shall be
                  deemed to be substantially the same as those set forth in the
                  Advice as long as there is no more than a five percent (5%)
                  reduction in the "bottom line" cost per rentable square foot
                  of the Suite 1900 Offering Space to the prospect when compared
                  with the "bottom line" cost per rentable square foot under the
                  Advice, considering all of the economic terms of the both
                  deals, respectively, including, without limitation, the length
                  of term, the net rent, any tax or expense escalation or other
                  financial escalation and any financial concessions.

            4.    Offering Amendment. If Tenant exercises the Right of First
                  Offer granted herein, Landlord shall prepare an amendment (the
                  "Offering Amendment") adding the Suite 1900 Offering Space to
                  the Premises on the terms set forth in the Advice and
                  reflecting the changes in the Base Rent, Rentable Area of the
                  Premises, Tenant's Pro Rata Share and other appropriate terms.
                  A copy of the Offering Amendment shall be (i) sent to Tenant
                  within a reasonable time after receipt of the Notice of
                  Exercise executed by Tenant, and (ii) executed by Tenant and
                  returned to Landlord within ten (10) days thereafter.
                  Notwithstanding the foregoing, if Tenant exercises its Right
                  of First Offer, but thereafter fails to timely execute and
                  deliver the Offering Amendment to Landlord, at Landlord's
                  option, Tenant's obligation to lease the Suite 1900 Offering
                  Space in accordance with the terms and conditions of the
                  Advice shall be final and binding on Tenant.

      B.    Right of First Offer - - 11th and 15th Floors.

            1.    Generally. Tenant shall have the right of first offer with
                  respect to any space that becomes Available for Lease
                  (hereinafter defined) on the 11th or (subject to the Mazama
                  Rights, defined below) 15th floors of the Building (the
                  "Offering Space"). Offering Space shall be deemed to be
                  "Available for Lease" as follows: (i) with respect to any
                  Offering Space that is under lease from time to time to third
                  parties, such Offering Space shall be deemed to be Available
                  for Lease when Landlord has determined that such third party
                  will not extend or renew the term of its lease or enter into a
                  new lease for the Offering Space, or (ii) with respect to any
                  Offering Space that is not under lease, such Offering Space
                  shall be deemed to be available when landlord is ready to put
                  such space on the market for lease. Within a reasonable time
                  after Landlord has determined that a particular portion of the
                  Offering Space is Available for

                                      15
<PAGE>

                  Lease (but prior to leasing such portion of the Offering Space
                  to a third party), Landlord shall advise Tenant (the "Advice")
                  of the square footage and location of such portion of the
                  Offering Space and the terms (i.e., Base Rent, Additional Rent
                  and improvement allowance, if any) under which Landlord is
                  prepared to lease such Offering Space to Tenant for the
                  remainder of the Term. Tenant may lease such portion of the
                  Offering Space in its entirety only, under such terms, by
                  delivering written notice of exercise to Landlord ("Notice of
                  Exercise") within ten (10) days after the date of the Advice,
                  except that Tenant shall have no such Right of First Offer and
                  Landlord need not provide Tenant with an Advice, if:

                  a.    Tenant is in default under the Lease at the time
                        Landlord would otherwise deliver the Advice; or

                  b.    [INTENTIONALLY OMITTED]

                  c.    the Lease has been assigned (except in pursuant to a
                        Permitted Transfer) prior to the date Landlord would
                        otherwise deliver the Advice; or

                  d.    with respect to Space on the 15th floor, the holder of
                        the Mazama Rights elects to exercise one or more of such
                        rights, in a manner which supercedes the Right of First
                        Offer with respect to such Space; or

                  e.    the Offering Space is not intended for the exclusive use
                        of Tenant.

            2.    Terms.

                  a.    If Tenant timely exercises the Right of First Offer
                        granted herein, the term for the Offering Space shall
                        commence upon the commencement date stated in the Advice
                        and thereupon such Offering Space shall be considered a
                        part of the Premises, provided that all of the terms
                        stated in the Advice shall govern Tenant's leasing of
                        the Offering Space and only to the extent that they do
                        not conflict with the Advice, the terms and conditions
                        of the Lease shall apply to the Offering Space.

                  b.    Tenant shall pay Base Rent and Additional Rent for the
                        Offering Space in accordance with the terms and
                        conditions of the Advice.

                  c.    The Offering Space (including improvements) shall be
                        accepted by Tenant in its condition and as-built
                        configuration existing on the earlier of the date Tenant
                        takes possession of the Offering Space or as of the date
                        the term for such Offering Space commences, provided
                        that such Offering Space shall be delivered to Tenant
                        vacant, broom clean and free of claims and possession of
                        third parties.

            3.    Expiration of Right of First Offer. The rights of Tenant
                  hereunder with respect to any portion of the Offering Space
                  for which Landlord provides Tenant with an Advice shall
                  terminate on the earlier to occur of: (i) November 30, 2014,
                  (ii) Tenant's failure to exercise its Right of First Offer
                  within the ten (10) day period provided in Paragraph 7.B.1.
                  above, and (ii) the date Landlord would have provided Tenant
                  an Advice if Tenant had not been in violation of one or more
                  of the conditions set forth in Paragraph 7.B.1 above. In
                  addition, if Landlord provides Tenant with an Advice that
                  contains expansion rights (whether such rights are described
                  as an expansion option, right of first refusal, right to first
                  offer or otherwise) and Tenant does not exercise its Right of
                  First Offer to lease the Offering Space described in the
                  Advice, and Landlord subsequently leases such Offering Space
                  to a third party pursuant to a lease containing all or some of
                  the expansion rights, Tenant's Right of First Offer shall be
                  thereafter subject and subordinate to all such expansion
                  rights contained in the third party lease. Notwithstanding the
                  foregoing, Tenant shall once again have the Right of First
                  Offer with respect to the Offering Space if (i) Tenant was
                  entitled to exercise its Right of First Offer, but failed to

                                      16
<PAGE>

                  provide Landlord with a Notice of Exercise within the ten (10)
                  day period provided in Section 7.B.1 above, and Landlord
                  proposes to lease the Offering Space to a prospective tenant
                  on terms that are substantially different than those set forth
                  in the Advice. For purposes hereof, the terms offered to a
                  prospect shall be deemed to be substantially the same as those
                  set forth in the Advice as long as there is no more than a ten
                  percent (10%) reduction in the "bottom line" cost per rentable
                  square foot of the Offering Space to the prospect when
                  compared with the "bottom line" cost per rentable square foot
                  under the Advice, considering all of the economic terms of the
                  both deals, respectively, including, without limitation, the
                  length of term, the net rent, any tax or expense escalation or
                  other financial escalation and any financial concessions.

            4.    Offering Amendment. If Tenant exercises the Right of First
                  Offer described herein, Landlord shall prepare an amendment
                  (the "Offering Amendment") adding the Offering Space to the
                  Premises on the terms set forth in the Advice and reflecting
                  the changes in the Base Rent, rentable area of the Premises,
                  Tenant's Pro Rata Share and other appropriate terms. A copy of
                  the Offering Amendment shall be (i) sent to Tenant within a
                  reasonable time after receipt of the Notice of Exercise
                  executed by Tenant, and (ii) revised by Landlord to address
                  any requested changes by Tenant that are necessary to
                  accurately reflect the terms and conditions hereof; (iii)
                  executed by Tenant and returned to Landlord within fifteen
                  (15)days thereafter. Notwithstanding the foregoing, if Tenant
                  exercises its Right of First Offer, but thereafter fails to
                  timely execute and deliver the Offering Amendment to Landlord,
                  at Landlord's option, Tenant's obligation to lease the
                  Offering Space in accordance with the terms and conditions of
                  the Advice shall nonetheless be binding upon Tenant.

      C.    Effect on Tenant's Obligation to Lease Second Must-Take Space. If
            Tenant exercises either the Right of First Offer described in
            Section 7.A above or exercises the Right of First Offer pursuant to
            Section 7.B above with respect to all of either the 11th or 15th
            floors (or a combination of spaces on such floor(s) which, when
            aggregated, have a rentable square footage equal to or in excess of
            the rentable square footage of all of either floor 11 or floor 15)
            and occupies any such full floor (or such full-floor equivalent
            space) on or before April 1, 2011, then Tenant shall have no
            obligation to lease the Second Must-Take Space as described in
            Section 6 above and if Tenant has exercised is Second Must-Take
            Termination Option and paid the Second Must-Take Termination Fee,
            Tenant shall be entitled to either (i) deduct the amount of the
            Second Must-Take Termination Fee from the Base Rent next due under
            this Lease for the Premises until such Second Must-Take termination
            Fee paid has been reimbursed in full or (ii) to receive from
            Landlord reimbursement of the Second Must-Take Termination Fee
            within 30 days after written demand therefore delivered to Landlord
            by Tenant.

      D.    Mazama Rights. As used herein, the "Mazama Rights" means the rights
            currently held by Mazama Capital Management, Inc. ("Mazama"), a
            current tenant of space on the 15th floor of the Building, to (i)
            extend the term of its lease and/or (ii) to have a right of first
            offer with respect to the portion of the 15th floor not occupied by
            Mazama.

8.    OTHER EXPANSION SPACE. If Tenant desires additional expansion space within
the Building in addition to the space described in Sections 5, 6 and 7 above,
Landlord will use good faith efforts to accommodate Tenant's expansion request
by providing space as close to the Premises as is feasible; the foregoing will
not be construed to require Landlord to relocate existing tenants in order to
accommodate Tenant, although Landlord may, in its sole discretion, elect to do
so.

9.    TENANT IDENTITY.

      A.    Signage. Tenant shall have the right (i) to install (a) one (1) sign
            on the east facade of the Building above the 19th floor and (b) one
            (1) additional sign on the Building's exterior in an area to be
            designated by Tenant but subject to Landlord's prior written
            approval (each, a "Building Sign") and (ii) to maintain signage
            identifying Tenant on two (2) monument signs serving the Building
            (the "Monument Signs") (each of the foregoing Building Signs and
            Monument Signs

                                      17
<PAGE>

            being generically referred to herein as a "Sign" and together, the
            "Signs"). The Signs will identify the initial Tenant named hereunder
            (either "Umpqua" or "Umpqua Bank", an Oregon State Chartered Bank)
            and shall not be used for any other purpose. The installation of
            each of the Signs shall be subject to all applicable zoning codes,
            rules or regulations, and the method of manufacture, design,
            location and maintenance of the Signs shall be subject to Landlord's
            prior written approval. The Building Signs may be illuminated
            provided that Tenant pay all costs associated with such
            illumination, such as the cost of installing and maintaining any
            necessary utility infrastructure as well as the cost of utilities
            consumed by such sign). Tenant, at its sole cost and expense, shall
            obtain all necessary building permits and zoning and regulatory
            approvals in connection with the Signs. All costs in connection with
            the Signs, including any costs for the design, installation,
            supervision of installation, wiring, maintenance, repair and removal
            of the Signs, will be at borne solely by Tenant. Tenant shall submit
            to Landlord reasonably detailed drawings of the proposed Building
            Signs, including without limitation, the size, material, shape and
            lettering, for review and approval by Landlord, which approval will
            not be unreasonably withheld. The Building Signs shall conform to
            the standards of design and motif established by Landlord for the
            exterior of the Building. Tenant shall reimburse Landlord, within 10
            Business Days following invoice therefore, for any costs associated
            with Landlord's review and supervision in connection with Landlord's
            approval of the Building Signs and their installation including, but
            not limited to, engineers and other professional consultants. Tenant
            will be responsible for the repair of any damage that the
            installation of the Building Signs may cause to the Building. Tenant
            may not change the size or location of either Monument Sign. Tenant
            agrees upon the expiration date or sooner termination of this Lease,
            upon Landlord's request, to remove the Signs and to repair and
            restore any damage to the Building resulting from either the
            installation or removal of the Signs, at Tenant's expense. In
            addition, Landlord shall have the right to remove the Signs at
            Tenant's sole cost and expense, if, at any time during the Term (1)
            Tenant assigns the interest in the Lease, or (2) Tenant is in
            Monetary Default under any term or condition of the Lease and fails
            to cure such Monetary Default within any applicable grace period.

      B.    Building Name. Upon the Commencement Date, Landlord will cause the
            Building to be renamed Umpqua Bank Plaza. Tenant acknowledges that
            the Building naming rights are personal to the original Tenant named
            hereunder (i.e., Umpqua Bank, an Oregon State Chartered Bank) and
            may not be transferred in any manner to another entity or
            individual. Additionally, the Building naming rights granted however
            may, at Landlord's sole option, be rescinded if at any time Tenant
            is in default under the Lease.

      C.    Flag Pole. The initial Tenant named herein will have the exclusive
            right to the use of one (1) flagpole serving the Building and
            designated by Landlord for the purpose of flying a flag which
            identifies the initial Tenant named hereunder (i.e., Umpqua Bank, an
            Oregon State Chartered Bank); provided that Landlord will have the
            right to review and approve the proposed size and design of any such
            flag (Landlord's approval not to be unreasonably withheld). All
            costs associated with the use of such flagpole will be borne by
            Tenant. Landlord will have the right to rescind Tenant's right to
            the use of such flagpole if, at any time during the Term (1) Tenant
            assigns its interest in the Lease (other than to a Permitted
            Transferee retaining the name of the initial Tenant hereunder), or
            (2) Tenant is in Monetary Default under any term or condition of the
            Lease and fails to cure such Monetary Default within any applicable
            grace period

                                      18
<PAGE>

                                   EXHIBIT F-1

                       LOCATION OF CUSTOMER PARKING SPACES

                                   [TO FOLLOW]

                                       1
<PAGE>

                                    EXHIBIT G

                                GUARANTY OF LEASE

FOR VALUE RECEIVED and in consideration for and as an inducement to OR-BF PLAZA
LIMITED PARTNERSHIP, A DELAWARE LIMITED PARTNERSHIP ("Landlord") to lease
certain real property to UMPQUA BANK, AN OREGON STATE CHARTERED BANK, as tenant
("Tenant"), pursuant to a lease dated ___________, 200__ (the "Lease") by and
between Landlord and Tenant, the undersigned, UMPQUA HOLDINGS CORPORATION, AN
OREGON BANKING CORPORATION ("Guarantor"), does hereby unconditionally and
irrevocably guarantee to Landlord the punctual payment of all Rent (as such term
is defined in the Lease) payable by Tenant under the Lease throughout the term
of the Lease and any and all renewals and extensions thereof in accordance with
and subject to the provisions of the Lease, and the full performance and
observance of all other terms, covenants, conditions and agreements therein
provided to be performed and observed by Tenant under the terms of the Lease,
for which the undersigned shall be jointly and severally liable with Tenant. If
any default on the part of Tenant shall occur under the Lease, the undersigned
does hereby covenant and agree to pay to Landlord in each and every instance
such sum or sums of money and to perform each and every covenant, condition and
agreement under the Lease as Tenant is and shall become liable for or obligated
to pay or perform under the Lease, together with the costs reasonably incurred
by Landlord in connection therewith, including, without limitation, reasonable
attorneys' fees. Such payments of Rent and other sums shall be made monthly or
at such other intervals as the same shall or may become payable under the Lease,
including any accelerations thereof, all without requiring any notice from
Landlord (other than any notice required by the Lease) of such non-payment or
non performance, all of which the undersigned hereby expressly waives.

      The maintenance of any action or proceeding by Landlord to recover any sum
or sums that may be or become due under the Lease and to secure the performance
of any of the other terms, covenants and conditions of the Lease shall not
preclude Landlord from thereafter instituting and maintaining subsequent actions
or proceedings for any subsequent default or defaults of Tenant under the Lease.
The undersigned does hereby consent that without affecting the liability of the
undersigned under this Guaranty and without notice to the undersigned, time may
be given by Landlord to Tenant for payment of Rent and such other sums and
performance of said other terms, covenants and conditions, or any of them, and
such time extended and indulgence granted, from time to time, or Tenant may be
dispossessed or Landlord may avail itself of or exercise any or all of the
rights and remedies against Tenant provided by law or by the Lease, and may
proceed either against Tenant alone or jointly against Tenant and the
undersigned or against the undersigned alone without first prosecuting or
exhausting any remedy or claim against Tenant. The undersigned does hereby
further consent to any subsequent change, modification or amendment of the Lease
in any of its terms, covenants or conditions, or in the Rent payable thereunder,
or in the premises demised thereby, or in the term thereof, and to any
assignment or assignments of the Lease, and to any subletting or sublettings of
the premises demised by the Lease, and to any renewals or extensions thereof,
all of which may be made without notice to or consent of the undersigned and
without in any manner releasing or relieving the undersigned from liability
under this Guaranty.

      The undersigned does hereby agree that the bankruptcy of Tenant shall have
no effect on the obligations of the undersigned hereunder. The undersigned does
hereby further agree that in respect of any payments made by the undersigned
hereunder, the undersigned shall not have any rights based on suretyship,
subrogation or otherwise to stand in the place of Landlord so as to compete with
Landlord as a creditor of Tenant, unless and until all claims of Landlord under
the Lease shall have been fully paid and satisfied.

      Neither this Guaranty nor any of the provisions hereof can be modified,
waived or terminated, except by a written instrument signed by Landlord. The
provisions of this Guaranty shall apply to, bind and inure to the benefit of the
undersigned and Landlord and their respective heirs, legal representatives,
successors and assigns. The undersigned, if there be more than one, shall be
jointly and severally liable hereunder, and for purposes of such several
liability the word "undersigned" wherever used herein shall be construed to
refer to each of the undersigned parties separately, all in the same manner and
with the same effect as if each of them had signed separate instruments, and
this Guaranty shall not be revoked or impaired as to any of such parties by the
death of another party or by revocation or release of any obligations hereunder
of any other party. If Landlord should retain counsel and/or institute any suit
against Guarantor to enforce this Guaranty or any covenants or obligations
hereunder, then Guarantor shall pay to Landlord, upon demand, all reasonable
attorneys' fees, costs and expenses, including, without limitation, court costs,
filing fees, recording costs, and all other

                                       1
<PAGE>

costs and expenses incurred in connection therewith (all of which are referred
to herein as "Enforcement Costs"), in addition to all other amounts due
hereunder. This Guaranty shall be governed by and construed in accordance with
the internal laws of the state where the premises demised by the Lease are
located. For the purpose solely of litigating any dispute under this Guaranty,
the undersigned submits to the jurisdiction of the courts of said state.

      Any notice or other communication to be given to Landlord or the
undersigned hereunder shall be in writing and sent in accordance with the notice
provisions of the Lease. Notices to Landlord shall be delivered to Landlord's
address set forth in the Lease. Notices to the undersigned shall be addressed as
follows: Steve Philpott, General Counsel, c/o Umpqua Bank, P.O. Box 1560,
Eugene, OR 97440. If Guarantor's notice address as set forth above changes,
Guarantor agrees to provide written notice to Landlord of such change in
address.

      IN WITNESS WHEREOF, the undersigned has executed this Guaranty as of the
date of the Lease.

                                                GUARANTOR:

                                                UMPQUA HOLDINGS CORPORATION,
                                                AN OREGON BANKING CORPORATION

                                                By:___________________________

                                                Name:_________________________

                                                Title:________________________

                            GUARANTOR ACKNOWLEDGMENTS
                                   CORPORATION

STATE OF ____________)
COUNTY OF __________)  ss:

      On this the ___ day of ____________, 20__, before me a Notary Public duly
authorized in and for the said County in the State aforesaid to take
acknowledgments personally appeared __________________________ known to me to be
____________ President of ________________________, one of the parties described
in the foregoing instrument, and acknowledged that as such officer, being
authorized so to do, (s)he executed the foregoing instrument on behalf of said
corporation by subscribing the name of such corporation by himself/herself as
such officer and caused the corporate seal of said corporation to be affixed
thereto, as a free and voluntary act, and as the free and voluntary act of said
corporation, for the uses and purposes therein set forth.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                                       _________________________
                                                             Notary Public

My Commission Expires:     __________

                                       2
<PAGE>

                                    EXHIBIT H

                            JANITORIAL SPECIFICATIONS

                                       1
<PAGE>

                                    EXHIBIT I

                         SUITE 900 TERMINATION AGREEMENT

      THIS LEASE TERMINATION AGREEMENT ("TERMINATION AGREEMENT") is made as of
______________, 2004, by and between OR-BF PLAZA LIMITED PARTNERSHIP, A DELAWARE
LIMITED PARTNERSHIP ("LANDLORD") and UMPQUA BANK, AN OREGON STATE CHARTERED BANK
("TENANT").

                                    RECITALS:

A.    Landlord (as successor in interest to Spieker Properties, L.P.) and Tenant
      (as successor in interest to Centennial Bank) are parties to that certain
      lease dated as of April 5, 1999, which lease has been previously amended
      by instruments dated June 18, 1999 and May 25, 2000 (collectively, the
      "LEASE") relating to approximately 6,588 rentable square feet, known as
      Suite No. 900 (the "PREMISES") located on the 9th floor of the building
      commonly known as Benjamin Franklin Plaza, located at One SW Columbia
      Street, Portland, Oregon (the "BUILDING"), all as more particularly
      described in the Lease.

B.    The Term is scheduled to expire on July 31, 2009 (the "STATED TERMINATION
      DATE"), and Landlord and Tenant desire to terminate the Lease prior to the
      Stated Termination Date on the terms and conditions contained in this
      Termination Agreement.

      NOW, THEREFORE, in consideration of the above recitals which by this
reference are incorporated herein, the mutual covenants and conditions contained
herein and other valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Landlord and Tenant agree as follows:

1.    Effective as of the date that Tenant completes its "Initial Alterations"
in, and occupies the portion of the Building known as, Suite 100 pursuant to the
terms of that certain Office Lease of even date herewith by and between Landlord
and Tenant pursuant to which Tenant will initially occupy Suites 100 and 1200 in
the Building, which date is anticipated to occur on or about March 1, 2005 (the
"EARLY TERMINATION DATE") and subject to the agreements, representations,
warranties and indemnities contained in this Termination Agreement, the Lease is
terminated and the Term of the Lease shall expire with the same force and effect
as if the Term was, by the provisions thereof, fixed to expire on the Early
Termination Date.

2.    Subject to the agreements, representations and warranties contained in
this Agreement, effective as of the Early Termination Date, (i) Tenant remises,
releases, quitclaims and surrenders to Landlord, its successors and assigns, the
Lease and all of the estate and rights of Tenant in and to the Lease and the
Premises, and (ii) Tenant forever releases and discharges Landlord from any and
all claims, demands or causes of action whatsoever against Landlord or its
successors and assigns arising out of or in connection with the Premises or the
Lease and (iii) forever releases and discharges Landlord from any obligations to
be observed or performed by Landlord under the Lease after the Early Termination
Date; provided that Landlord has satisfied, performed and fulfilled all of the
agreements set forth in this Termination Agreement, and each of the
representations and warranties set forth in Section 5 below are true and
correct.

3.    Subject to the agreements, representations, warranties and indemnities
contained in this Termination Agreement, Landlord (i) agrees to accept the
surrender of the Lease and the Premises from and after the Early Termination
Date and, (ii) effective as of the Early Termination Date, forever releases and
discharges Tenant from any obligations to be observed and performed by Tenant
under the Lease after the Early Termination Date, provided that Tenant has
satisfied, performed and fulfilled all of the agreements set forth in this
Termination Agreement, and each of the representations and warranties set forth
in Section 5 below are true and correct.

4.    On or prior to the Early Termination Date,

      (a)   Tenant shall:

            (i)   Fulfill all covenants and obligations of Tenant under the
Lease applicable to the period prior to and including the Early Termination
Date.

            (ii)  Completely vacate and surrender the Premises to Landlord in
accordance with the terms of the Lease. Without limitation, Tenant shall leave
the Premises in a broom-

                                       1
<PAGE>

clean condition and free of all movable furniture and equipment and shall
deliver the keys to the Premises to Landlord or Landlord's designee.

      (b)   Landlord shall fulfill all covenants and obligations of Landlord
under the Lease applicable to the period prior to and including the Early
Termination Date.

5.    Tenant represents and warrants that (a) Tenant is the rightful owner of
all of the Tenant's interest in the Lease; (b) Tenant has not made any
disposition, assignment, sublease, or conveyance of the Lease or Tenant's
interest therein; (c) Tenant has no knowledge of any fact or circumstance which
would give rise to any claim, demand, obligation, liability, action or cause of
action arising out of or in connection with Tenant's occupancy of the Premises;
(d) no other person or entity has an interest in the Lease, collateral or
otherwise; and (e) there are no outstanding contracts for the supply of labor or
material and no work has been done or is being done in, to or about the Premises
which has not been fully paid for and for which appropriate waivers of
mechanic's liens have not been obtained. The foregoing representation and
warranty shall be deemed to be remade by Tenant in full as of the Early
Termination Date. Landlord represents to Tenant that(i) Landlord is the rightful
owner of all of Landlord's interest in the Lease, (ii) Landlord has not made any
disposition, assignment or conveyance of Landlord's interest in the Lease, and
(iii) Landlord has no knowledge of any fact or circumstance which would give
rise to any claim, demand, obligation, liability action or cause of action
arising out of or in connection with Landlord's interest with respect to the
Premises.

6.    Notwithstanding anything in this Termination Agreement to the contrary,
Tenant shall remain liable for all year-end adjustments with respect to Tenant's
pro-rata share of Operating Expenses for that portion of the calendar year up to
and including the Early Termination Date. Such adjustments shall be paid at the
time, in the manner and otherwise in accordance with the terms of the Lease,
unless otherwise specified herein.

7.    Section 6.1 of the Lease shall survive the termination of the Lease
pursuant to this Agreement, as described in said Section 6.1.

8.    Each signatory of this Termination Agreement represents hereby that he or
she has the authority to execute and deliver the same on behalf of the party
hereto for which such signatory is acting.

9.    This Termination Agreement shall be binding upon and inure to the benefit
of Landlord and Tenant and their respective successors, assigns and related
entities.

                                       2
<PAGE>

      IN WITNESS WHEREOF, Landlord and Tenant have executed this Termination
Agreement on the day and year first above written.

                                           LANDLORD:

                                           OR-BF PLAZA LIMITED PARTNERSHIP, A
                                           DELAWARE LIMITED PARTNERSHIP

                                           By: EOP-QRS Trust, a Maryland real
                                               estate investment trust, its
                                               general partner

                                               By:    __________________________

                                               Name:  __________________________

                                               Title: __________________________

                                           TENANT:

                                           UMPQUA BANK, AN OREGON STATE
                                           CHARTERED BANK

                                           By:    ______________________________

                                           Name:  ______________________________

                                           Title: ______________________________

                                           Tenant's Tax ID Number (SSN or FEIN):

                                           _____________________________________

                                        3

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