Document:

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                                                                    EXHIBIT 10.8

                    MULTI-TENANT INDUSTRIAL TRIPLE NET LEASE

                        Effective Date: December 15, 2000
                 (the date set forth below Landlord's signature)

                             BASIC LEASE INFORMATION

Landlord:                        CATELLUS DEVELOPMENT CORPORATION, a Delaware
                                 corporation

Landlord's Address For           201 Mission Street
      Notice:                    San Francisco, California 94105
                                 Attn: Asset Management & Office of General
                                 Counsel
                                 Telephone: (415) 974-4500
                                 Fax: (415) 974-4687

With a Copy to:                  CB Richard Ellis
                                 1300 SW 5th Avenue, Suite 2600
                                 Portland, Oregon 97201
                                 Attn: Property Management
                                 Telephone: (503) 221-1900
                                 Fax: (503) 221-4873

Landlord's Address               File #1918
      For Payment of Rent:       P.O. Box 61000
                                 San Francisco, California 94161-1918

Tenant:                          SYNETICS SOLUTIONS INC.,
                                 an Oregon corporation

Tenant's Address                 7440 S.W. Bonita Avenue
      For Notice:                Tigard, Oregon 97224
                                 Attn: Koki Nakamura
                                 Telephone: (503) 670-9934
                                 Fax: (503) 639-2264

Project:                         Those portions of "Southshore Corporate Park"
                                 located in the City of Gresham, County of
                                 Multnomah, State of Oregon. A conceptual plot
                                 plan of Southshore Corporate Park (the "Site
                                 Plan") is attached hereto as Exhibit A-1 (which
                                 indicates thereon the approximate location of
                                 the Premises and other parcels of land within
                                 Southshore Corporate Park as presently
                                 contemplated by Landlord). Tenant acknowledges
                                 that Exhibit A-1 is intended to be used only
                                 for illustrative purposes and nothing contained
                                 therein shall constitute a representation or
                                 warranty by Landlord.

Land:                            Approximately 10.2 acre parcel of land shown on
                                 the Site Plan attached hereto as Exhibit A-1.

                                      (i)

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Building:                        An office/manufacturing/warehouse building
                                 located on the Land and containing
                                 approximately 180,000 rentable square feet.

Premises:                        Approximately 44,930 rentable square feet
                                 located within the Building as shown on Exhibit
                                 A-2.

Premises Address:                Southshore Corporate Park - Building C
      Street:                    4293 NE 189th Avenue
      City and State:            Gresham, Oregon 97230

Term:                            One Hundred Twenty (120) months

Possession Date:                 December 15, 2000

Commencement Date:               January 1, 2001

Monthly Base Rent:                                       Monthly
                                    Months              Base Rent
                                    ------             ----------
                                    1 - 24             $16,399.45

                                   25 - 48             $17,383.42

                                   49 - 72             $18,462.42

                                   73 - 96             $19,532.00

                                   97 - 120            $20,703.93

                                  121 - 144+           $21,946.16

                                  145 - 168+           $23,262.93

                                  169 - 180+           $24,658.71

                                 + Subject to the provisions of the Option to
                                   Extend set forth in Section 19 of the
                                   Addendum to Lease

Tenant's Share of Building
Operating Expenses:              24.96%

Tenant's Share of Project
Operating Expenses:              10.01%

Letter of Credit:                $98,394.00, subject to adjustment pursuant to
                                 Section 3.3

Broker:                          Landlord's Broker: CB Richard Ellis
                                 Tenant's Broker: Macadam Forbes, Inc.

                                      (ii)

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Lease Year:                      Shall refer to each twelve (12) month period
                                 during the Term commencing on the Commencement
                                 Date.

Permitted Uses:                  The manufacturing, warehousing and distribution
                                 of mini-clean room environment equipment and
                                 other related activities, together with
                                 collateral office space, all to the extent
                                 consistent with the character of the Project as
                                 a first-class industrial project. No other uses
                                 shall be permitted without the prior written
                                 consent of Landlord, which may be given or
                                 withheld in Landlord's sole and absolute
                                 discretion. In no event shall any use of the
                                 Premises violate the Prohibited Uses set forth
                                 in Exhibit E attached hereto or the terms of
                                 the CC&Rs (defined in Section 11 of the Lease)
                                 and all uses of the Premises shall at all times
                                 comply with and be consistent with all of the
                                 provisions of this Lease (including, without
                                 limitation, the Rules and Regulations attached
                                 hereto as Exhibit F) and applicable law.

Parking Spaces:                  Forty-Eight (48) unreserved parking spaces,
                                 subject to the terms of Section 1.4

Rentable Square Feet of          Shall mean (a) the total square footage of the
Premises:                        Premises, measured from the outside of the
                                 exterior walls of the Building and to the
                                 center of any demising walls separating the
                                 Premises from other premises in the Building,
                                 plus (b) a pro rata share of any common utility
                                 rooms and/or electrical vaults located in the
                                 Building that do not exclusively serve the
                                 Premises or other premises leased to other
                                 tenants of the Building (which pro rata share
                                 shall be the same percentage as Tenant's Share
                                 of Building Operating Expenses).

Rentable Square Feet of          Shall mean the total square footage of the
Building:                        Building, measured from the outside of the
                                 exterior walls of the Building to the center
                                 thereof.

Option to Extend:                One (1) five (5) year Option to Extend in
                                 accordance with Section 19 in the Addendum to
                                 Lease.

ADDENDUM

EXHIBITS

A-1         Site Plan
A-2         Premises
B           Work Letter
C           Commencement Date Memorandum
D           Insurance Certificate
E           Prohibited Uses
F           Rules and Regulations
G           Requirements for Improvements or Alterations by Tenant
H           Estoppel Certificate
I           Subordination, Non-Disturbance and Attornment Agreement
J           Arbitration Procedures
K           Form of Letter of Credit

                                     (iii)

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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                    PAGE
                                                                    ----
<S>                                                                 <C>
1.  PREMISES....................................................      1
    1.1         Premises........................................      1
    1.2         Common Area.....................................      1
    1.3         Reserved Rights.................................      1
    1.4         Parking.........................................      1

2.  TERM........................................................      2
    2.1         Commencement Date...............................      2
    2.2         Intentionally Deleted...........................      2
    2.3         Early Entry.....................................      2

3.  RENT........................................................      2
    3.1         Rent............................................      2
    3.2         Late Charge and Interest........................      3
    3.3         Letter of Credit................................      3

4.  UTILITIES...................................................      4

5.  TAXES.......................................................      4
    5.1         Real Property Taxes.............................      4
    5.2         Definition of Real Property Taxes...............      4
    5.3         Personal Property Taxes.........................      5

6.  OPERATING EXPENSES..........................................      5
    6.1         Operating Expenses..............................      5
    6.2         Definition of Operating Expenses................      5

7.  ESTIMATED EXPENSES..........................................      6
    7.1         Payment.........................................      6
    7.2         Adjustment......................................      6
    7.3         Audit Right.....................................      6

8.  INSURANCE...................................................      7
    8.1         Landlord........................................      7
    8.2         Tenant..........................................      7
    8.3         General.........................................      8
    8.4         Indemnity.......................................      8
    8.5         Exemption of Landlord from Liability............      9

9.  REPAIRS AND MAINTENANCE.....................................      9
    9.1         Tenant..........................................      9
    9.2         Landlord........................................     10
    9.3         Landlord's Failure to Perform...................     10

10. ALTERATIONS.................................................     11
    10.1        Trade Fixtures; Alterations.....................     11
    10.2        Damage; Removal.................................     11
    10.3        Liens...........................................     12
    10.4        Standard of Work................................     12

11. USE.........................................................     12

12. ENVIRONMENTAL MATTERS.......................................     13
    12.1        Hazardous Materials.............................     13
    12.2        Tenant's Indemnification........................     13
    12.3        Pre-existing Conditions and Indemnification.....     14

13. DAMAGE AND DESTRUCTION......................................     14
    13.1        Casualty........................................     14
    13.2        Tenant's Fault..................................     16
</TABLE>

                                      (v)

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<TABLE>
<CAPTION>
                                                                    PAGE
                                                                    ----
<S>                                                                 <C>
    13.3        Uninsured Casualty..............................     16
    13.4        Waiver..........................................     16

14. EMINENT DOMAIN..............................................     16
    14.1        Total Condemnation..............................     16
    14.2        Partial Condemnation............................     16
    14.3        Award...........................................     17
    14.4        Temporary Condemnation..........................     17

15. DEFAULT.....................................................     17
    15.1        Events of Defaults..............................     17
    15.2        Remedies........................................     17
    15.3        Cumulative......................................     18

16. ASSIGNMENT AND SUBLETTING...................................     19

17. ESTOPPEL, ATTORNMENT AND SUBORDINATION......................     19
    17.1        Estoppel........................................     19
    17.2        Subordination...................................     20
    17.3        Attornment......................................     20

18. MISCELLANEOUS...............................................     20
    18.1        General.........................................     20
    18.2        Signs...........................................     21
    18.3        Waiver..........................................     21
    18.4        Financial Statements............................     21
    18.5        Limitation of Liability.........................     22
    18.6        Notices.........................................     22
    18.7        Brokerage Commission............................     22
    18.8        Authorization...................................     22
    18.9        Holding Over; Surrender.........................     22
    18.10       Joint and Several...............................     23
    18.11       Covenants and Conditions........................     23
    18.12       Auctions........................................     23
    18.13       Consents........................................     23
    18.14       Force Majeure...................................     23
    18.15       Mortgagee Protection............................     23
    18.16       Hazardous Substance Disclosure..................     24
    18.17       ADA Compliance..................................     24
    18.18       Addenda.........................................     24
</TABLE>

                                      (vi)

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1.       PREMISES

         1.1      Premises. Landlord hereby leases to Tenant that portion of the
Building as shown on Exhibit A-2 attached hereto (the "Premises"), but excluding
the Common Area (defined below) and any other portion of the Building, the Land
and/or the Project. Tenant has determined that the Premises are acceptable for
Tenant's use and Tenant acknowledges that, except as set forth in the Work
Letter attached hereto as Exhibit B (the "Work Letter"), neither Landlord nor
any broker or agent has made any representations or warranties in connection
with the physical condition of the Premises or their fitness for Tenant's use
upon which Tenant has relied directly or indirectly for any purpose. By taking
possession of the Premises, Tenant accepts the Premises "AS-IS" and waives all
claims of defect in the Premises, except as set forth herein or in the Work
Letter. Tenant shall be responsible for confirming the street address of
Premises with the City.

         1.2      Common Area. Tenant may, subject to rules made by Landlord,
use the following areas on the Land or within the Building ("Building Common
Area") in common with Landlord and other tenants of the Building: hallways,
stairwells, entranceways, restroom facilities, refuse facilities, landscaped
areas, driveways necessary for access to the Premises, parking spaces and other
common facilities located in the Building and/or on the Land designated by
Landlord from time to time for the common use of all tenants of the Building.
Tenant may, subject to the CC&Rs (as defined in Section 11 below) and any rules
or regulations made by Landlord, use the following areas of the Project
("Project Common Area") in common with Landlord, tenants of the Building and/or
other owners or lawful users of the Project: refuse facilities, landscaped
areas, roads, driveways necessary for access to the Premises, parking spaces,
retention basins and other common facilities designated by Landlord from time to
time for the common use of all tenants and owners of the Project. The Building
Common Area and the Project Common Area are collectively referred to herein as
the "Common Area".

         1.3      Reserved Rights. Landlord reserves the right to enter the
Premises for any reason upon reasonable notice to Tenant (or without notice in
case of an emergency) and/or to undertake the following all without abatement of
rent or liability to Tenant: inspect the Premises and/or the performance by
Tenant of the terms and conditions hereof; make such alterations, repairs,
improvements or additions to the Premises as required or permitted hereunder;
change boundary lines of the Land so long as such change does not materially and
adversely impact Tenant's use of the parking area and/or access to the Premises;
install, use, maintain, repair, alter, relocate or replace any pipes, ducts,
conduits, wires, equipment and other facilities (including, without limitation,
cabling and conduit for telecommunications facilities of any kind) in the Common
Area or the Building; install, maintain and operate conduit cabling within the
utility and/or conduit ducts and risers within the Building, as well as, grant
lease, license or use rights to third parties, to utilize the foregoing grant
easements or licenses on the Land and/or the Project; dedicate for public use
portions of the Land and/or the Project and record covenants, conditions and
restrictions affecting the Land and/or the Project and/or amendments to existing
CC&Rs (as defined below in Section 11 below) which do not unreasonably interfere
with Tenant's use of the Premises or impose additional material monetary
obligations on Tenant; change the name of the Building and/or the Project; affix
reasonable signs and displays on the Building and/or the Land; and, during the
last six (6) months of the Term, place signs for the rental of, and show the
Premises to prospective tenants.

         1.4      Parking. So long as this Lease is in effect and provided
Tenant is not in default hereunder, Landlord grants to Tenant and Tenant's
customers, suppliers, employees and invitees ("Tenant's Authorized Users") a
non-exclusive license to use up to forty-eight (48) parking spaces in the areas
designated by Landlord as parking facilities for the Building. All visitor
parking will be on a non-exclusive, in common basis with all other visitors and
guests of the Project. Tenant will not use or allow any of Tenant's Authorized
Users to use any parking spaces which have been specifically assigned by
Landlord for other uses such as visitor parking or which have been designated by
any governmental entity as being restricted to certain uses. Landlord may assign
any unreserved and unassigned parking spaces and/or make all or any portion of
such spaces reserved, if Landlord reasonably determines that it is necessary for
orderly and efficient parking or for any other reasonable reason. Tenant and
Tenant's Authorized Users shall comply with all rules and regulations regarding
parking set forth in Exhibit F attached hereto and Tenant agrees to cause
Tenant's Authorized Users to comply with such rules and regulations. Landlord
reserves the right from time to time to modify and/or adopt such other
reasonable and non-discriminatory rules and regulations for the parking
facilities as it deems reasonably necessary for the operation of the parking
facilities, but in no event shall Landlord be entitled to charge fees for
parking without the prior written consent of Tenant, which is not to be
unreasonably withheld or delayed. Tenant may, at Tenant's sole cost and expense,

<PAGE>

provide for the striping of additional parking spaces in the paved areas
adjacent to Tenant's loading docks and the fifty foot (50') wide concrete dock
apron, provided that (i) the addition of such spaces in the loading dock and
apron areas is in compliance with all applicable laws and (ii) any and all costs
associated with providing such parking spaces in the loading dock areas shall be
at Tenant's sole cost and expense, including, without limitation, any
landscaping requirements imposed by the City.

2.       TERM

         2.1      Commencement Date. The Term of the Lease shall commence
("Commencement Date") on January 1, 2001; provided, however, Tenant's obligation
to pay Rent (as defined in Section 3.1 below) shall commence on December 15,
2000 (the "Possession Date"). Rent shall be paid for the period between the
Possession Date and the Commencement Date (e.g., December 15 to January 1, 2001)
at the rate stated in the Basic Lease Information, prorated on the basis of a
thirty (30) day month, and shall be due and payable to Landlord on or before the
Possession Date. Concurrently with the execution of this Lease, Tenant shall
execute and deliver to Landlord the Commencement Date Memorandum attached hereto
as Exhibit C acknowledging (i) the Commencement Date, (ii) the Possession Date,
and (iii) the final square footage of the Premises.

         2.2      Intentionally Deleted

         2.3      Early Entry. Subject to the following provisions of this
Section 2.3, Tenant shall have the right to enter the Premises no earlier than
fifteen (15) days prior to the Possession Date to install phone systems,
furniture, fixtures and equipment, etc. and such early entry for such purposes
shall not constitute occupancy for operation of Tenant's business and shall not
trigger the Possession Date or the Commencement Date. Tenant agrees (i) any such
early entry by Tenant shall be at Tenant's sole risk, (ii) Tenant shall not
interfere with Landlord or Landlord's contractors completing work within the
Premises or cause any labor difficulties; Tenant, together with its employees,
agents and independent contractors will be subject to and will work under the
direction of Landlord's contractor, (iii) Tenant shall comply with and be bound
by all provisions of this Lease during the period of any such early entry except
for the payment of Rent, (iv) prior to entry upon the Premises by Tenant, Tenant
agrees to pay for and provide to Landlord certificates evidencing the existence
and amounts of liability insurance carried by Tenant, which coverage must comply
with the provisions of this Lease relating to insurance, (v) Tenant and its
agents and contractors agree to comply with all applicable laws, regulations,
permits and other approvals required to perform its work during the early entry
on the Premises, and (vi) Tenant agrees to indemnify, protect, defend and save
Landlord and the Premises harmless from and against any and all liens,
liabilities, losses, damages, costs, expenses, demands, actions, causes of
action and claims (including, without limitation, attorneys' fees and legal
costs) arising out of the early entry, use, construction, or occupancy of the
Premises by Tenant or its agents, employees or contractors.

3.       RENT

         3.1      Rent. Tenant shall pay to Landlord, at Landlord's Address for
Payment of Rent designated in the Basic Lease Information, or at such other
address as Landlord may from time to time designate in writing to Tenant for the
payment of Rent, the Base Rent, without notice, demand, offset or deduction, in
advance, on the first day of each calendar month. Landlord shall have no
obligation to notify Tenant of any increase in Rent and Tenant's obligation to
pay all Rent (and any increases) when due shall not be modified or altered by
such lack of notice from Landlord. It is intended that this Lease be a "triple
net lease," and that the Rent to be paid hereunder by Tenant will be received by
Landlord without any deduction or offset whatsoever by Tenant, foreseeable or
unforeseeable. Except as expressly provided to the contrary in this Lease,
Landlord shall not be required to make any expenditure, incur any obligation, or
incur any liability of any kind whatsoever in connection with this Lease or the
ownership, construction, maintenance, operation or repair of the Premises or the
Project. Upon the execution of this Lease, Tenant shall pay to Landlord the
first month's Base Rent. If the Term commences (or ends) on a date other than
the first (or last) day of a month, Base Rent shall be prorated on the basis of
a thirty (30) day month. All sums other than Base Rent which Tenant is obligated
to pay under this Lease shall be deemed to be additional rent due hereunder
("Additional Rent"), whether or not such sums are designated Additional Rent
and, together with the Base Rent, shall be due and payable to Landlord
commencing on the Possession Date. The term "Rent" means the Base Rent and all
Additional Rent payable hereunder.

                                      -2-
<PAGE>

         3.2      Late Charge and Interest. The late payment of any Rent will
cause Landlord to incur additional costs, including administration and
collection costs and processing and accounting expenses and increased debt
service ("Delinquency Costs"). If Landlord has not received any installment of
Rent within five (5) days after such amount is due, Tenant shall pay a late
charge of five percent (5%) of the delinquent amount, which is agreed to
represent a reasonable estimate of the Delinquency Costs incurred by Landlord.
In addition, all such delinquent amounts shall bear interest from the date such
amount was due until paid in full at a rate per annum ("Applicable Interest
Rate") equal to the lesser of (a) the maximum interest rate permitted by law or
(b) five percent (5%) above the rate publicly announced by Bank of America, N.A.
(or if Bank of America, N.A. ceases to exist, the largest bank then
headquartered in the State of California) ("Bank") as its "Reference Rate". If
the use of the announced Reference Rate is discontinued by the Bank, then the
term Reference Rate shall mean the announced rate charged by the Bank which is,
from time to time, substituted for the Reference Rate. Landlord and Tenant
recognize that the damage which Landlord shall suffer as a result of Tenant's
failure to pay such amounts is difficult to ascertain and said late charge and
interest are the best estimate of the damage which Landlord shall suffer in the
event of late payment. If a late charge becomes payable for any three (3)
installments of Rent within any twelve (12) month period, then the Rent shall
automatically become due and payable quarterly in advance.

         3.3      Letter of Credit

                  3.3.1    Form of Letter of Credit. Concurrently with Tenant's
execution and delivery of this Lease, Tenant shall deliver to Landlord an
unconditional, irrevocable, standby letter of credit (the "Letter of Credit")
with an expiration date no earlier than twelve (12) months from the date of
issuance in the amount of Ninety Eight Thousand Three Hundred Ninety Four and
No/100 Dollars ($98,394.00). The Letter of Credit shall be in the same form as
Exhibit K attached hereto. The Letter of Credit shall secure the full and
faithful performance of each provision of this Lease to be performed by Tenant.
The Letter of Credit shall be issued by a money-center bank, or another
financial institution acceptable to Landlord in its sole discretion. The Letter
of Credit must be presentable in San Francisco, California. If Tenant fails to
pay Rent or otherwise defaults with respect to any provision of this Lease and
fails to cure any such default within any applicable notice and cure period
provided in this Lease, then Landlord may execute one or more drafts on the
Letter of Credit for the payment of any Rent, or for the payment of any other
sum for which Landlord may become obligated by reason of Tenant's default, or
for any payment to which Landlord may become entitled by reason of Tenant's
default, or for payment to Landlord for any loss or damage which Landlord may
suffer thereby. The Letter of Credit shall contain language allowing Landlord to
draw upon the Letter of Credit upon presentation to the issuer of the Letter of
Credit of Landlord's written statement that Landlord is entitled to the funds
represented by such Letter of Credit in accordance with the terms hereof. If
Landlord so uses or applies all or any portion of the amount represented by the
Letter of Credit, then Tenant shall, within ten (10) days after written demand
therefor, at Landlord's sole option, (i) deposit cash with Landlord in lieu of
the Letter of Credit in the amount drawn, or (ii) deliver a replacement letter
of credit in the amount drawn so that the total amounts represented by the
Letter of Credit and the replacement letter of credit equals Ninety Eight
Thousand Three Hundred Ninety Four and No/100 Dollars ($98,394.00), and Tenant's
failure to do so shall be an Event of Default.

                  3.3.2    Annual Renewals. The Letter of Credit shall provide
for automatic annual renewals throughout the Term of this Lease unless, at
least sixty (60) days prior to any such date of expiration, the issuing bank
shall have given written notice to Landlord, by certified mail, return receipt
requested and at the Landlord's Address stated in the Basic Lease Information or
such other address as Landlord shall have given to the issuing bank, that the
Letter of Credit will not be renewed. Tenant shall, no later than thirty (30)
days prior to the expiration of the Letter of Credit or any replacement or
renewal thereof, deliver a new Letter of Credit substantially in the same form
as the then existing Letter of Credit except that the expiration date set forth
in such new Letter of Credit shall not be earlier than twelve (12) months after
the expiration date set forth in the Letter of Credit which is then being
replaced, and the issuer may be changed by Tenant to a financial institution
acceptable to Landlord in its sole discretion. If Tenant fails to deliver a new
Letter of Credit as required herein, then Landlord shall have the right, at its
sole option, to draw upon and present the then existing Letter of Credit for the
entire amount available thereunder. Until such time as Tenant shall thereafter
deliver a new Letter of Credit in the form and substance required hereunder,
Landlord shall retain possession of the funds so drawn as a security deposit to
secure Tenant's obligations under this Lease. Any such replacement Letter of
Credit shall satisfy and be subject to the provisions set forth in subparagraph
(a) above. Should the Letter of Credit then in effect be revoked or should the
creditworthiness of the issuer of the Letter of Credit then in effect become
impaired (in Landlord's sole judgment), then Tenant shall deliver a replacement
Letter of Credit in the form and substance required hereunder.

                                      -3-
<PAGE>

                  3.3.3    Changes. If the Permitted Use is amended (in
Landlord's sole and absolute discretion) to accommodate a change in the business
of Tenant or to accommodate a subtenant or assignee approved by Landlord,
Landlord shall have the right to increase the amount of the Letter of Credit to
the extent necessary, in Landlord's reasonable judgment, to account for any
increased risk to the Premises or increased wear and tear that the Premises may
suffer as a result thereof. If a change in control of Tenant occurs during this
Lease and following such change the financial condition of Tenant is, in
Landlord's reasonable judgment, reduced, Tenant shall cause the amount of the
Letter of Credit to be increased to an amount reasonably determined by Landlord
based on said change in financial condition.

                  3.3.4    Return of Letter of Credit. After Tenant vacates the
Premises, upon the expiration or sooner termination of this Lease, if Tenant is
not then in default or breach of any provision of this Lease, Landlord shall
return to Tenant the Letter of Credit and any unapplied cash balance of the
Letter of Credit that had been previously drawn upon.

4.       UTILITIES. Tenant shall pay all charges for heat, water, gas,
electricity, telephone and any other utilities used on or provided to the
Premises. Landlord shall not be liable to Tenant for interruption in or
curtailment of any utility service, nor shall any such interruption or
curtailment constitute constructive eviction or grounds for rental abatement. In
the event the Premises is not separately metered, Tenant shall have the option,
subject to Landlord's prior written consent and the terms of this Lease, to
cause the Premises to be separately metered at Tenant's cost and expense. If
Tenant does not elect to cause the Premises to be separately metered, Tenant
shall pay a reasonable proration of utilities, as determined by Landlord.
Notwithstanding any provision to the contrary contained in this Lease, in no
event shall Tenant use or be entitled to use more than 3,000 amps of power
within the Premises. Notwithstanding any provision of this Lease to the
contrary, Landlord shall be under no obligation to provide or cause to be
provided any electrical service to the Premises prior to the Commencement Date.

5.       TAXES

         5.1      Real Property Taxes. Tenant shall pay to Landlord Tenant's
Share of Real Property Taxes (as defined in Section 5.2) as a part of Operating
Expenses for each full or partial calendar year during the Lease Term in
accordance with the terms and provisions of Section 7.1 below.

         5.2      Definition of Real Property Taxes. "Real Property Taxes" shall
be the sum of the following: all real property taxes, assessments, supplementary
taxes, escape taxes, possessory-interest taxes, business or license taxes or
fees, service payments in lieu of such taxes or fees, annual or periodic license
or use fees, excises, transit and traffic charges, housing fund assessments,
open space charges, childcare fees, school, sewer and parking fees or any other
assessments, levies, fees, exactions or charges, general and special, ordinary
and extraordinary, unforeseen as well as foreseen (including fees "in-lieu" of
any such tax or assessment) which are assessed, levied, charged, conferred or
imposed by any public authority upon the Land, the Building or any other
improvements located on the Land and/or Project (or any real property comprising
any portion thereof) or its operations, together with all taxes, assessments or
other fees imposed by any public authority upon or measured by any Rent or other
charges payable hereunder, including any gross receipts tax or excise tax levied
by any governmental authority with respect to receipt of rental income, or upon,
with respect to or by reason of the possession, leasing, operation, management,
maintenance, alteration, repair, use or occupancy by Tenant of the Premises or
any portion thereof, or documentary transfer taxes upon this transaction or any
document to which Tenant is a party creating or transferring an interest in the
Premises, together with any tax imposed in substitution, partially or totally,
of any tax previously included within the aforesaid definition or any additional
tax the nature of which was previously included within the aforesaid definition,
together with any and all costs and expenses (including, without limitation,
attorneys', administrative and expert witness fees and costs) of challenging any
of the foregoing or seeking the reduction in or abatement, redemption or return
of any of the foregoing, but only to the extent of any such reduction,
abatement, redemption or return. All references to Real Property Taxes during a
particular year shall be deemed to refer to taxes accrued during such year,
including supplemental tax bills regardless of when they are actually assessed
and without regard to when such taxes are payable. Real Property Taxes shall
expressly include One Hundred Percent (100%) of any increase or supplemental
assessments accruing as a result of the construction of the Building, or any
other improvements located on the Land. In addition to Tenant's Share of Real
Property Taxes (paid as a part of Operating Expenses), Tenant shall pay to
Landlord One Hundred Percent (100%) of any increase in the assessed value of the
Land directly attributable to the value of any Tenant Improvements (as defined
in the Work Letter, if

                                      -4-
<PAGE>

any). The obligation of Tenant to pay Real Property Taxes (including any
supplemental taxes) for the last full and/or partial year(s) of the Term shall
survive the expiration or early termination of this Lease. In no event shall
Tenant or any Tenant Party (as defined in Section 12.1) be entitled to file any
property tax assessment appeal; provided, however, Tenant may appeal any
personal property taxes assessed on personal property which (x) is owned by
Tenant, (y) is not affixed to any portion of the Premises and (z) is not deemed
to be a fixture under the laws of the State of Oregon. Nothing contained in this
Lease shall require Tenant to pay any franchise, corporate, estate or
inheritance tax of Landlord, or any income, profits or revenue tax or charge
upon the net income of Landlord. Subject to the terms of this Section 5.2, Real
Property Taxes for partial years, if any, falling within the Term shall be
prorated.

         5.3      Personal Property Taxes. Prior to delinquency, Tenant shall
pay all taxes and assessments levied upon trade fixtures, alterations,
additions, improvements, inventories and other personal property located and/or
installed on the Premises by Tenant; and Tenant shall provide Landlord copies of
receipts for payment of all such taxes and assessments. To the extent any such
taxes are not separately assessed or billed to Tenant, Tenant shall pay the
amount thereof as invoiced by Landlord.

6.       OPERATING EXPENSES

         6.1      Operating Expenses. Tenant shall pay to Landlord Tenant's
Share of the Building Operating Expenses and Tenant's Share of Project Operating
Expenses for each full or partial calendar year during the Lease Term, as
provided in Section 7.1 below.

         6.2      Definition of Operating Expenses. "Operating Expenses" shall
mean collectively the "Building Operating Expenses" and the "Project Operating
Expenses" as defined in this Section 6.2.

                  6.2.1    "Building Operating Expenses" means the total costs
and expenses incurred by Landlord in the ownership, operation, maintenance,
repair and management of the Building, the Land and/or the Building Common Area,
including, but not limited to: (a) repair, replacement, maintenance, utility
costs and landscaping of the Building Common Area, including, but not limited
to, any and all costs of maintenance, repair and replacement of all parking
areas (including bumpers, sweeping, striping and slurry coating), common
driveways, loading and unloading areas, trash areas, outdoor lighting,
sidewalks, walkways, landscaping, irrigation systems, fences and gates and other
costs which are allocable to the Building and/or the Land including any costs
under the terms of any CC&Rs affecting the real property, (b) non-structural
maintenance, repair and replacement of the roof (and roof membrane), skylights
and exterior walls of the Premises (including painting); (c) insurance
deductibles and the costs relating to the insurance maintained by Landlord as
described in Section 8.1 below, including, without limitation, Landlord's cost
of any deductible or self insurance retention; (d) maintenance contracts for,
and the repair and replacement of, the heating, ventilation and air-conditioning
(HVAC) systems and elevators, if any; (e) maintenance, repair, replacement,
monitoring and operation of the fire/life safety and sprinkler system (to the
extent Landlord is obligated to do so pursuant to Section 9.2); (f) trash
collection; (g) capital improvements or capital replacements (excluding the roof
structure) made to or capital assets acquired for the Building or the Land after
the Commencement Date that in Landlord's good faith judgment are intended to
reduce Building Operating Expenses or are reasonably necessary for the health
and safety of the occupants of the Building or are required under any
governmental law or regulation, which capital costs, or an allocable portion
thereof, shall be amortized over the period determined by Landlord together with
interest on the unamortized balance at the Applicable Interest Rate, all in
accordance with "generally accepted accounting principles" ("GAAP") consistently
applied; (h) commercially reasonable reserves set aside for maintenance and
repair; (i) Real Property Taxes attributable to the Land; and (j) any other
costs, except as noted in this Lease, incurred by Landlord related to the
Building and/or the Land and not related to the Project as a whole.
Notwithstanding any provision to the contrary contained in this Section 6.2.1,
Tenant shall pay to Landlord an amount equal to three percent (3%) of Rent for
the costs and fees incurred by Landlord in connection with the management of
this Lease, the Premises, the Building and/or the Land including the cost of
those services which are customarily performed by a property management services
company, whether performed internally or through an outside management company.
Building Operating Expenses shall not include (i) replacement of or structural
repairs to the roof, slab or the exterior walls; (ii) repairs to the extent
covered by insurance proceeds, or paid by Tenant or other third parties; (iii)
alterations solely attributable to tenants of the Project other than Tenant;
(iv) marketing and legal expenses; (v) any cost or expense associated with
compliance with any laws, ordinances, rules or regulations regarding any
condition existing in the Building or on the Land if

                                      -5-
<PAGE>

such condition existed prior to the Commencement Date, including, but not
limited to removal of any and all asbestos and other toxic and hazardous
substances located in the Premises; and (vi) any costs or expenses being charged
directly and solely to other tenants in the Building (other than pursuant to the
operating expenses clauses of the lease(s) of such other tenant(s)).

                  6.2.2    Project Operating Expenses. "Project Operating
Expenses" shall include all reasonable and necessary expenses incurred by
Landlord in the ownership, operation, maintenance, repair and management of the
Project Common Area, including, without limitation, Real Property Taxes
attributable to the Project Common Area; provided, however that all improvements
or replacements made to or assets acquired for the Project after the
Commencement Date that are reasonably expected to reduce Project Operating
Expenses or are reasonably necessary for the health and safety of the occupants
of the Project or required under any government of law or regulation, which
costs, or an allocable portion thereof, shall be amortized over the period
determined by Landlord, together with interest on the unamortized balance at the
Applicable Interest Rate actually paid to third party lenders, all in accordance
with GAAP consistently applied.

7.       ESTIMATED EXPENSES

         7.1      Payment. "Estimated Expenses" for any particular year shall
mean Landlord's estimate of Operating Expenses for a calendar year. Tenant shall
pay Tenant's Share of the Estimated Expenses with installments of Base Rent in
monthly installments of one-twelfth (1/12th) thereof on the first day of each
calendar month during such year. If at any time Landlord determines that
Operating Expenses are projected to vary from the then Estimated Expenses,
Landlord may, by notice to Tenant, revise such Estimated Expenses, and Tenant's
monthly installments for the remainder of such year shall be adjusted so that by
the end of such calendar year Tenant has paid to Landlord Tenant's Share of the
revised Estimated Expenses for such year.

         7.2      Adjustment. "Operating Expenses Adjustment" (or "Adjustment")
shall mean the difference between Tenant's Share of Estimated Expenses and
Tenant's Share of Operating Expenses for any calendar year. After the end of
each calendar year, Landlord shall deliver to Tenant a statement of Tenant's
Share of Operating Expenses for such calendar year, accompanied by a computation
in sufficient detail of the Adjustment. If Tenant's payments are less than
Tenant's Share, then Tenant shall pay the difference within twenty (20) days
after receipt of such statement. Tenant's obligation to pay such amount shall
survive the expiration or termination of this Lease. If Tenant's payments exceed
Tenant's Share, then (provided that Tenant is not in material default), Landlord
shall credit such excess amount to future installments of Tenant's Share for the
next calendar year. If Tenant is in material default, Landlord may, but shall
not be required to, credit such amount to Rent arrearages.

         7.3      Audit Right. In the event of any dispute as to the amount of
Tenant's Share of Operating Expenses, Tenant or an accounting firm selected by
Tenant and reasonably satisfactory to Landlord will have the right, by prior
written notice ("Audit Notice") given within ninety (90) days ("Audit Period")
following receipt of an actual statement of Operating Expenses ("Actual
Statement") and at reasonable times during normal business hours, to audit
Landlord's accounting records with respect to Operating Expenses relative to the
year to which such Actual Statement relates at the office of Landlord at which
records are kept or, at Landlord's election, the office of Landlord's property
manager (if any). In no event will Landlord or its property manager be required
to (i) photocopy any accounting records or other items or contracts, (ii) create
any ledgers or schedules not already in existence, (iii) incur any costs or
expenses relative to such inspection, or (iv) perform any other tasks other than
making available such accounting records as aforesaid. Neither Tenant nor its
auditor may leave the office of Landlord with originals of any materials
supplied by Landlord. Tenant must pay Tenant's Share of Operating Expenses when
due pursuant to the terms of this Lease and may not withhold payment of
Operating Expenses or any other rent pending results of the audit or during a
dispute regarding Operating Expenses. The audit must be completed within sixty
(60) days of the date of Tenant's Audit Notice and the results of such audit
shall be delivered to Landlord within seventy-five (75)days of the date of
Tenant's Audit Notice. If Tenant does not comply with any of the aforementioned
time frames, then such Actual Statement will be conclusively binding on Tenant.
If such audit or review correctly reveals that Landlord has overcharged Tenant,
then within thirty (30) days after the results of such audit are made available
to Landlord, the amount of such overcharge shall be deducted from the
installments of Tenant's Share of Operating Expenses next becoming due. If the
audit reveals that Tenant was undercharged, then within thirty (30) days after
the results of the audit are made available to Tenant, Tenant agrees to
reimburse Landlord the amount of such undercharge. Tenant agrees to pay the cost
of such audit, provided that if the audit

                                      -6-
<PAGE>

reveals that Landlord's determination of Tenant's Share of Operating Expenses as
set forth in the relevant Actual Statement was in error in Landlord's favor by
more than five percent (5%) of the amount charged by Landlord to Tenant pursuant
to such Actual Statement, then Landlord agrees to pay the reasonable,
third-party cost of such audit incurred by Tenant. To the extent Landlord must
pay the cost of such audit, such cost shall not exceed a reasonable hourly
charge for a reasonable amount of hours spent by such third-party in connection
with the audit. Tenant agrees to keep the results of the audit confidential and
will cause its agents, employees and contractors to keep such results
confidential. To that end, Landlord may require Tenant and its auditor to
execute a confidentiality agreement provided by Landlord.

8.       INSURANCE

         8.1      Landlord. Landlord shall maintain insurance through individual
or blanket policies insuring the Building against fire and extended coverage
(including, if Landlord elects, "all risk" coverage, earthquake/volcanic action,
flood and/or surface water insurance) for the full replacement cost of the
Building, with deductibles and the form and endorsements of such coverage as
selected by Landlord, together with rental abatement insurance against loss of
Rent in an amount equal to the amount of Rent for a period of at least twelve
(12) months commencing on the date of loss. Landlord may also carry such other
insurance as is commercially reasonable (when compared to insurance customarily
carried by sophisticated, institutional landlords for the protection of such
landlords and the production of properties similar to the Premises), including,
without limitation, liability insurance in such amounts and on such terms as
Landlord shall determine. Tenant shall pay to Landlord, as a portion of the
Operating Expenses, the costs of the insurance coverages described herein,
including, without limitation, Landlord's cost of any self-insurance deductible
or retention.

         8.2      Tenant. Tenant shall, at Tenant's expense, obtain and keep in
force at all times the following insurance:

                  8.2.1    Commercial General Liability Insurance (Occurrence
Form). A policy of commercial general liability insurance (occurrence form)
having a combined single limit of not less than Two Million Dollars ($2,000,000)
per occurrence and Two Million Dollars ($2,000,000) aggregate per location if
Tenant has multiple locations, providing coverage for, among other things,
blanket contractual liability, premises, products/completed operations with an
"Additional Insured-Managers or Lessors of Premises Endorsement" and containing
the "Amendment of the Pollution Exclusion Endorsement" for damage caused by
heat, smoke or fumes from a hostile fire, and personal and advertising injury
coverage, with deletion of the exclusion for operations within fifty (50) feet
of a railroad track (railroad protective liability), if applicable, and if
applicable, and, if necessary, Tenant shall provide for restoration of the
aggregate limit, and provided that the policy shall not contain any
intra-insured exclusions as between insured persons or organizations, but shall
include coverage for liability assumed under this Lease as an "insured contract"
for the performance of Tenant's indemnity obligations under this Lease;

                  8.2.2    Automobile Liability Insurance. Business automobile
liability insurance having a combined single limit of not less than Two Million
Dollars ($2,000,000) per occurrence and insuring Tenant against liability for
claims arising out of ownership, maintenance, or use of any owned, hired or
non-owned automobiles;

                  8.2.3    Workers' Compensation and Employer's Liability
Insurance. Workers' compensation insurance having limits not less than those
required by state statute and federal statute, if applicable, and covering all
persons employed by Tenant in the conduct of its operations on the Premises
(including the all states endorsement and, if applicable, the volunteers
endorsement), together with employer's liability insurance coverage in the
amount of at least One Million Dollars ($1,000,000);

                  8.2.4    Property Insurance. "All risk" property insurance
including boiler and machinery comprehensive form, if applicable, covering
damage to or loss of any of Tenant's personal property, fixtures, equipment and
alterations, including electronic data processing equipment (collectively
"Tenant's Property") (and coverage for the full replacement cost thereof
including business interruption of Tenant), together with, if the property of
Tenant's invitees is to be kept in the Premises, warehouser's legal liability or
bailee customers insurance for the full replacement cost of the property
belonging to invitees and located in the Premises; and

                                      -7-
<PAGE>

                  8.2.5    Business Interruption. Loss of income and extra
expense insurance in amounts as will reimburse Tenant for direct or indirect
loss of earnings attributable to all peril commonly insured against by prudent
lessees in the business of Tenant or attributable to prevention of access to the
Premises as a result of such perils.

         8.3      General

                  8.3.1    Insurance Companies. Insurance required to be
maintained by Tenant shall be written by companies licensed to do business in
the state in which the Premises are located and having a "General Policyholders
Rating" of at least "A-/VIII" (or such higher rating as may be required by a
lender having a lien on the Premises) as set forth in the most current issue of
"Best's Insurance Guide."

                  8.3.2    Certificates of Insurance. Tenant shall deliver to
Landlord certificates of insurance for all insurance required to be maintained
by Tenant in the form of Exhibit D, attached hereto (or in a form acceptable to
Landlord in its sole discretion), no later than seven (7) days prior to the date
of possession of the Premises. Tenant shall, at least ten (10) days prior to
expiration of the policy, furnish Landlord with certificates of renewal or
"binders" thereof. Each certificate shall expressly provide that such policies
shall not be cancelable or otherwise subject to modification except after sixty
(60) days prior written notice to the parties named as additional insureds in
this Lease (except in the case of cancellation for nonpayment of premium in
which case cancellation shall not take effect until at least ten (10) days'
notice has been given to Landlord). If Tenant fails to maintain any insurance
required in this Lease, Tenant shall be liable for all losses and costs suffered
or incurred by Landlord (including litigation costs and attorneys' fees and
expenses) resulting from said failure.

                  8.3.3    Additional Insureds. Landlord, Landlord's lender, if
any, and any property management company of Landlord for the Premises shall be
named as additional insureds on a form approved by Landlord under all of the
policies required by Section 8.2.1. The policies required under Section 8.2.1
shall provide for severability of interest.

                  8.3.4    Primary Coverage. All insurance to be maintained by
Tenant shall, except for workers' compensation and employer's liability
insurance, be primary, without right of contribution from insurance of Landlord.
Any umbrella liability policy or excess liability policy (which shall be in
"following form") shall provide that if the underlying aggregate is exhausted,
the excess coverage will drop down as primary insurance. The limits of insurance
maintained by Tenant shall not limit Tenant's liability under this Lease.

                  8.3.5    Mutual Waiver of Subrogation. Subject to Section
13.2, whenever (a) any loss, cost, damage or expense resulting from fire,
explosion or any other casualties incurred by either Landlord or Tenant or by
anyone claiming by, through or under Landlord or Tenant in connection with the
Premises, and (b) such party is covered in whole or in part by insurance (or
would have been covered but for such party's failure to maintain the coverage
required in this Section 8) with respect to such loss, cost, damage or expense
or as required under this Lease to be self-insured, then the party so insured
(or so required) hereby waives (on its own behalf and on behalf of its insured)
any claims against and releases the party from any liability said other party
may have on account of such loss, cost, damage or expense. All insurance which
is carried by either party to insure against damage or loss to property shall
include provisions denying to each respective insurer rights of subrogation and
recovery against the other party.

                  8.3.6    Notification of Incidents. Tenant shall notify
Landlord within twenty-four (24) hours after the occurrence of any accidents or
incidents in the Premises, the Building, Common Areas or the Project which could
give rise to a claim under any of the insurance policies required under this
Section 8.

         8.4      Indemnity. Tenant shall indemnify, protect, defend (by counsel
acceptable to Landlord) and hold harmless Landlord and Landlord's affiliated
entities, and each of their respective members, managers, partners, directors,
officers, employees, shareholders, lenders, agents, contractors, successors and
assigns from and against any and all claims, judgments, causes of action,
damages, penalties, costs, liabilities, and expenses, including all costs,
reasonable attorneys' fees, expenses and liabilities incurred in the defense of
any such claim or any action or proceeding brought thereon, arising at any time
during or after the Term as a result (directly or indirectly) of or in
connection with (i) any default in the performance of any obligation on Tenant's
part to be performed under the terms of this Lease, or (ii) Tenant's use of the
Premises, the conduct of Tenant's business or any activity, work or

                                      -8-
<PAGE>

things done, permitted or suffered by Tenant or any Tenant Party in or about the
Premises, the Building, the Common Area or other portions of the Project, except
for claims caused solely by Landlord's gross negligence or willful misconduct.
The obligations of Tenant under this Section 8.4 shall survive the termination
of this Lease with respect to any claims or liability arising prior to such
termination. Landlord shall indemnify, protect, defend (by counsel reasonably
acceptable to Tenant) and hold harmless Tenant and Tenant's affiliated entities,
and each of their respective members, managers, partners, directors, officers,
employees, shareholders, lenders, agents, contractors, successors and assigns
from and against any and all claims, judgments, causes of action, damages,
penalties, costs, liabilities, and expenses, including all costs, reasonable
attorney's fees, expenses and liabilities incurred in the defense of any such
claim or any action or proceeding brought thereon caused solely by Landlord's
gross negligence or willful misconduct. The obligations of Landlord under this
Section 8.4 shall survive the termination of this Lease with respect to any
claims or liability arising prior to such termination.

         8.5      Exemption of Landlord from Liability. Tenant, as a material
part of the consideration to Landlord, hereby assumes all risk of damage to
property including, but not limited to, Tenant's fixtures, equipment, furniture
and alterations or illness or injury to persons in, upon or about the Premises,
the Building, the Land, the Common Area or other portions of the Project arising
from any cause, and Tenant hereby expressly releases Landlord and waives all
claims in respect thereof against Landlord, except only such claims which are
caused solely by Landlord's gross negligence or willful misconduct or which are
expressly provided for in Section 12.3 hereof. Tenant hereby agrees that
Landlord shall not be liable for injury to Tenant's business or any loss of
income therefrom. Tenant hereby further agrees that Landlord shall not be liable
for damage to the property of Tenant, or injury to or illness or death of Tenant
or any Tenant Party or any other person in or about the Premises, the Building,
the Common Area or the Project, whether such damage, illness or injury is caused
by fire, steam, electricity, gas, water or rain, or from the breakage, leakage
or other defects of sprinklers, wires, appliances, ventilation, plumbing, air
conditioning or lighting fixtures, or from any other cause, and whether said
damage, illness or injury results from conditions arising upon the Premises,
upon other portions of the Building or from other sources or places, and
regardless of whether the cause of such damage, illness or injury or the means
of repairing the same is inaccessible to Tenant, except only damage, illness or
injury caused solely by Landlord's gross negligence or willful misconduct or
which is expressly provided to the contrary in Section 12.3 hereof. Landlord
shall not be liable for any damages arising from any act or neglect of any
contractor or other tenant, if any, of the Building or the Project or Landlord's
failure to enforce the terms of any agreements with parties other than Tenant;
provided that Landlord shall use its commercially reasonable efforts to enforce
the terms of any agreements with parties other than Tenant.

9.       REPAIRS AND MAINTENANCE

         9.1      Tenant. Tenant, at Tenant's sole cost and expense, shall keep
and maintain the Premises (interior and exterior, excluding roofing and
painting), including, without limitation, loading docks, roll up doors and
ramps, floors, subfloors and floor coverings, walls and wall coverings, doors,
windows, glass, plate glass, locks, ceilings, skylights, lighting systems,
interior plumbing, electrical and mechanical systems and wiring, appliances and
devices using or containing refrigerants, fixtures and equipment in good repair
and in a clean and safe condition, and repair and/or replace any and all of the
foregoing in a clean and safe condition, in good order, condition and repair.
Without limiting the foregoing, Tenant shall, at Tenant's sole expense,
immediately replace all broken glass in the Premises with glass equal to or in
excess of the specification and quality of the original glass; and repair any
area damaged by Tenant, Tenant's agents, employees, invitees and visitors,
including any damage caused by any roof penetration, whether or not such roof
penetration was approved by Landlord. All repairs and replacements by Tenant
shall be made and performed: (a) at Tenant's cost and expense and at such time
and in such manner as Landlord may designate, (b) by contractors or mechanics
approved by Landlord, (c) so that same shall be at least equal in quality, value
and utility to the original work or installation, (d) in a manner and using
equipment and materials that will not interfere with or impair the operations,
use or occupation of the Building or any of the mechanical, electrical, plumbing
or other systems in the Building or the Project, and (e) in accordance with the
Rules and Regulations and all Applicable Laws (as defined in Section 11). In the
event Tenant fails, in the reasonable judgment of Landlord, to maintain the
Premises in accordance with the obligations under the Lease, which failure
continues at the end of fifteen (15) days following Tenant's receipt of written
notice from Landlord stating the nature of the failure, or in the case of an
emergency immediately without prior notice, Landlord shall have the right to
enter the Premises and perform such maintenance, repairs or refurbishing at
Tenant's sole cost and expense (including a sum for overhead to Landlord equal
to ten percent (10%) of the costs of maintenance, repairs or refurbishing).
Tenant shall maintain written records of maintenance and repairs, as required by
any Applicable

                                      -9-
<PAGE>

Law, and shall use certified technicians to perform such maintenance and
repairs, as so required. Tenant shall deliver full and complete copies of all
service or maintenance contracts entered into by Tenant for the Premises to
Landlord within one hundred twenty (120) days after the Commencement Date.

         9.2      Landlord. Landlord shall, subject to the following
limitations, repair damage to structural portions of the roof, foundation and
load-bearing portions of walls (excluding wall coverings, painting, glass and
doors) of the Building, and damage to the exterior walls and other structural
portions of the Building; provided, if such damage is caused by an act or
omission of Tenant, or any Tenant Party, then such repairs shall be at Tenant's
sole expense. Landlord shall not be required to make any repair resulting from
(i) any alteration or modification to the Building or to mechanical equipment
within the Building performed by, for or because of Tenant or to special
equipment or systems installed by, for or because of Tenant, (ii) the
installation, use or operation of Tenant's property, fixtures and equipment,
(iii) the moving of Tenant's property in or out of the Building or in and about
the Premises, (iv) Tenant's use or occupancy of the Premises in violation of
Section 11 of this Lease or in the manner not contemplated by the parties at the
time of the execution of this Lease, (v) the acts or omissions of Tenant or any
Tenant Party, (vi) fire and other casualty, except as provided by Section 13 of
this Lease or (vii) condemnation, except as provided in Section 14 of this
Lease. Landlord shall have no obligation to make repairs under this Section 9.2
until a reasonable time after receipt of written notice from Tenant of the need
for such repairs. Subject to Section 9.3, there shall be no abatement of Rent
during the performance of such work, provided that neither the access to nor use
of the Premises is materially impaired in which case Tenant's exclusive remedy
shall be determined in accordance with Section 9.3 below. Landlord shall not be
liable to Tenant for injury or damage that may result from any defect in the
construction or condition of the Premises, nor for any damage that may result
from interruption of Tenant's use of the Premises during any repairs by
Landlord, provided that Landlord shall use its commercially reasonable efforts
to enforce the terms of any agreements with parties other than Tenant. Tenant
waives any right to repair the Premises, the Building and/or the Common Area at
the expense of Landlord under any Applicable Law.

         9.3      Landlord's Failure to Perform. In the event Landlord fails to
commence the repair of the Premises as required by Section 9.2 above ("Landlord
Repair Obligations") and such failure to commence such repair(s) continues at
the end of thirty (30) days following Landlord's receipt of written notice from
Tenant stating with particularity the nature of such failure, Tenant shall
simultaneously give Landlord and Landlord's mortgagee (provided Tenant has been
provided written notice of the address of such mortgagee) written notice
specifying such default and containing the following phrase (or substantially
similar to the following phrase) on page 1 of the notice in all capital letters
and boldface type (or it shall not be deemed validly given to Landlord) "YOUR
FAILURE TO COMMENCE THE CURE OF LANDLORD'S REPAIR OBLIGATIONS SET FORTH IN THIS
NOTICE WITHIN TEN (10) BUSINESS DAYS SHALL ENTITLE THE UNDERSIGNED TO CURE SUCH
DEFAULT AT LANDLORD'S EXPENSE WITHOUT FURTHER NOTICE". Landlord shall thereupon
have ten (10) business days in which to commence to cure the applicable Landlord
Repair Obligation. In addition, Landlord's mortgagee shall have the right (but
not the obligation) to cure or remedy Landlord's Repair Obligations upon the
terms and conditions of any SNDA (as defined in Section 17.2 below) entered into
by and between Tenant and any such lender, and if no such SNDA exists, then upon
the terms and conditions described in Section 18.15. In the event Landlord fails
to commence to cure the applicable Landlord Repair Obligation within said ten
(10) business day period and Tenant undertakes a Landlord Repair Obligation,
Tenant shall use a qualified, licensed and bondable contractor which normally
and regularly performs similar work on concrete tilt-up industrial buildings. If
Tenant thereafter delivers to Landlord an invoice by Tenant of its cost of
taking action which Tenant claims should have been taken by Landlord (the
"Tenant Invoice"), and if such Tenant Invoice sets forth a reasonably
particularized breakdown of its costs and expenses in connection with
undertaking such Landlord Repair Obligation, then Tenant shall be entitled to
offset against Base Rent the amount set forth in such Tenant Invoice following
delivery of the additional written notice described below; provided, however,
the amount of offset during any single month shall not exceed the greater of (A)
fifteen percent (15%) of the total Base Rent payable by Tenant to Landlord for
each applicable month or (B) the amount necessary to amortize fully Tenant's
costs of cure (plus interest at ten percent (10%) per annum on such costs) from
the date of completion of such cure to the expiration date of the Lease Term
(without regard to any unexercised renewal options), but in no event greater
than twenty percent (20%) of the total monthly Base Rent for any one month. The
unpaid balance of the Tenant's Invoice, if any, shall bear interest at an annual
rate of ten percent (10%). If, at any time, Landlord delivers to Tenant a
written objection to Tenant's claim that a particular Landlord Repair Obligation
is not required under the terms of this Lease, setting forth with reasonable
particularity Landlord's reasons for its claim that such repair action did not
have to be taken by Landlord

                                      -10-
<PAGE>

pursuant to the terms of this Lease, then Tenant shall not be entitled to such
offset, but as Tenant's sole remedy, Tenant may proceed to claim a Landlord
default and, if elected by either Landlord or Tenant, the matter shall proceed
to resolution by arbitration pursuant to the arbitration procedures set forth in
attached Exhibit J. The costs of such arbitration (including reasonable
attorneys fees and costs awarded to the prevailing party, if any) shall be paid
to the prevailing party in the arbitration if and to the extent awarded by the
arbitrator. In the event that Landlord fails to pay any amount to Tenant within
twenty (20) days following delivery of the Tenant Invoice, then Tenant may
provide to Landlord a written demand therefor ("Final Demand") which contains
the following phrase (or substantially similar to the following phrase) on page
1 of the notice in all capital letters and boldface type (or it shall not be
deemed validly delivered to Landlord) "YOUR FAILURE TO REIMBURSE TENANT AS
REQUIRED HEREIN WITHIN FIFTEEN (15) DAYS SHALL ENTITLE THE UNDERSIGNED TO
EXERCISE CERTAIN OFFSET RIGHTS AS SET FORTH IN THE LEASE WITHOUT FURTHER
NOTICE." If Landlord fails to pay to Tenant the amount due to Tenant within
fifteen (15) days following Landlord's receipt of the Final Demand or if
Landlord fails to pay any award granted to Tenant pursuant to an arbitration
proceeding in the manner described above within the time frame established
pursuant to any such proceeding, then Tenant may offset from the next
installments of rent and other charges coming due under this Lease the full
amount owed by Landlord to Tenant (together with all accrued interest).

10.      ALTERATIONS

         10.1     Trade Fixtures; Alterations. Tenant may install necessary
trade fixtures, equipment and furniture in the Premises, provided that such
items are installed and are removable without structural or material damage to
the Premises, or the Building. Without limiting the generality of the foregoing,
Landlord and Tenant hereby acknowledge that Tenant intends to install within the
Premises certain trade fixtures and equipment related to Tenant's Permitted Use
including, without limitation, powder coat room equipment ("Tenant's
Equipment"). Notwithstanding the foregoing, Tenant shall, prior to the
installation of Tenant's Equipment, deliver to Landlord for Landlord's review
and approval, which approval shall not be unreasonably withheld or delayed, an
inventory of Tenant's Equipment, the proposed location of such equipment within
the Premises and the specifications related to such items (including the gross
weight of each item included in Tenant's Equipment). Tenant shall not install or
locate any of Tenant's Equipment within the Premises unless and until Landlord
has approved the same in accordance with the preceding sentence. Tenant shall
not construct, nor allow to be constructed, any alterations or physical
additions in, about or to the Premises without obtaining the prior written
consent of Landlord, which consent shall be conditioned upon Tenant's compliance
with the provisions of Exhibit G and any other applicable requirements of
Landlord regarding construction of improvements and alterations. If Landlord
does not respond to a written request from Tenant made in accordance with
Exhibit G within ten (10) business days, then Landlord shall be deemed to
disapprove such request. In the event Tenant makes any alterations to the
Premises that trigger or give rise to a requirement that the Building or the
Premises come into compliance with any governmental laws, ordinances, statutes,
orders and/or regulations (such as ADA requirements), Tenant shall be fully
responsible for complying, at its sole cost and expense, with same. Tenant shall
file a notice of completion after completion of such work and provide Landlord
with a copy thereof.

         10.2     Damage; Removal. Tenant shall repair all damage to the
Premises, the Building, the Common Area or the Project caused by the
installation or removal of Tenant's fixtures, equipment, furniture or
alterations. Upon the expiration or earlier termination of this Lease, Tenant
shall remove any or all trade fixtures, alterations, additions, improvements
(including the Tenant Improvements [as defined in the Work Letter]) and
partitions ("Alteration(s)") made or installed by or on behalf of Tenant;
provided, however, Landlord has the absolute right to require Tenant to have all
or any portion of such items designated by Landlord to remain on the Premises,
in which event they shall be and become the property of Landlord upon the
termination of this Lease. Should Tenant make any Alterations without the prior
written approval of Landlord, Landlord may require that Tenant remove any or all
of such Alterations and repair any damage to the Premises resulting from the
installation and/or removal of such Alterations at any time and from time to
time. Subject to the conditions set forth above, Tenant shall restore the
Premises to its condition existing prior to the construction of any Alterations.
Tenant shall further patch and fill all holes within the Premises. All
penetrations of the roof shall be resealed to a water tight condition. In no
event shall Tenant remove from the Building any mechanical or electrical systems
or any wiring or any other aspect of any systems within the Premises, unless
Landlord specifically permits such removal in writing. All such removals and
restoration shall be accomplished in a good and workmanlike manner and so as not
to cause any damage to the Premises, the Building, the Common Area or the
Project whatsoever.

                                      -11-
<PAGE>

         10.3     Liens. Tenant shall promptly pay and discharge all claims for
labor performed, supplies furnished and services rendered at the request of
Tenant and shall keep the Premises free of all mechanics' and materialmen's
liens in connection therewith. Tenant shall provide at least ten (10) days prior
written notice to Landlord before any labor is performed, supplies furnished or
services rendered on or at the Premises and Landlord shall have the right to
post on the Premises notices of non-responsibility. If any lien is filed, Tenant
shall cause such lien to be released and removed within ten (10) days after the
date of filing, and if Tenant fails to do so, Landlord may take such action as
may be necessary to remove such lien and Tenant shall pay Landlord such amounts
expended by Landlord together with interest thereon at the Applicable Interest
Rate from the date of expenditure.

         10.4     Standard of Work. All work to be performed by or for Tenant
pursuant hereto shall be performed diligently and in a first class, workmanlike
manner, and in compliance with the terms of provisions of Exhibit G, all
Applicable Laws, and/or Tenant and Landlord's insurance carriers. Landlord shall
have the right, but not the obligation, to inspect periodically the work on the
Premises and Landlord may require changes in the method or quality of the work.

11.      USE. The Premises shall be used only for the Permitted Uses
set forth in the Basic Lease Information and for no other uses. Tenant's use of
the Premises shall be in compliance with and subject to all applicable laws,
statutes, codes, ordinances, orders, rules, regulations, conditions of approval
and requirements of all federal, state, county, municipal and governmental
authorities and all administrative or judicial orders or decrees and all
permits, licenses, approvals and other entitlements issued by governmental
entities, and rules of common law, relating to or affecting the Project, the
Premises or the Building or the use or operation thereof, whether now existing
or hereafter enacted, including, without limitation, the Americans with
Disabilities Act of 1990, 42 U.S.C. 12111 et seq. (the "ADA") as the same may be
amended from time to time, all Environmental Laws (as defined in Section 12.1),
and any covenants, conditions and restrictions encumbering the Land and/or the
Project or any supplement thereto recorded in any official or public records
with respect to the Project or any portion thereof ("Applicable Laws"). From and
after the date hereof Tenant shall use the Premises and permit the Premises to
be used solely for uses permitted by that certain Declaration of Covenants,
Conditions and Restrictions for Southshore Corporate Park executed by Catellus
Development Corporation and recorded in the Official Records of Multnomah
County, State of Oregon on June 7, 1999 as Instrument No. 99113258 (the
"CC&Rs"). In addition, Tenant acknowledges that the Premises are subject to that
certain Administrative Order on Consent made and entered into by and among the
United States Environmental Protection Agency, the State of Oregon Department of
Environmental Quality and Winmar Pacific, Inc. dated effective as of April 16,
1991 (the "Administrative Order"), which imposes certain covenants, conditions
and restrictions on Southshore Corporate Park. Tenant shall be responsible for
obtaining any permit, business license, or other permits or licenses required by
any governmental agency permitting Tenant's use or occupancy of the Premises. In
no event shall the Premises be used for any of the Prohibited Uses set forth on
Exhibit E attached hereto, as such Exhibit has been modified to conform to
Tenant's proposed use of the Premises. Notwithstanding any provision to the
contrary in this Section 11, in the event that a change in technology or similar
change in circumstances reasonably requires Tenant to use additional chemicals
or increased quantities of the permitted chemicals set forth on Schedule 1 to
Exhibit E (the "Permitted Hazardous Materials") in the manufacturing process
related to Tenant's Permitted Use, Tenant may submit to Landlord a written
request to modify Exhibit E which request shall identify the specific chemicals
and quantities to be used on the Premises (the "Proposed Hazardous Materials").
Landlord shall have ten (10) days from receipt of such a Tenant request to
approve or disapprove Tenant's request to modify the Permitted Hazardous
Materials in which case Landlord and Tenant shall execute an amendment to
Exhibit E of the Lease accordingly; provided, however, Landlord's approval
rights related to the Proposed Hazardous Materials shall be limited to the
Proposed Hazardous Materials' compliance with the CC&Rs and all Applicable Laws.
Subject to Tenant's obligation to comply with all Applicable Laws and the CC&Rs,
Landlord's failure to disapprove Tenant's requested modification to the
Permitted Hazardous Materials within such ten (10) day period shall be deemed
Landlord's approval thereof. Tenant shall comply with the rules and regulations
attached hereto as Exhibit F, together with such additional rules and
regulations as Landlord may from time to time prescribe. Tenant shall not commit
waste, overload the floors or structure of the Building, subject the Premises,
the Building, the Common Area or the Project to any use which would damage the
same or increase the risk of loss or violate any insurance coverage, permit any
unreasonable odors, smoke, dust, gas, substances, noise or vibrations to emanate
from the Premises, take any action which would constitute a nuisance or would
disturb, obstruct or endanger any other tenants, take any action which would
abrogate any warranties, or use or allow the Premises to be used for any
unlawful purpose. Tenant shall have the right in common with other tenants of
Landlord to use the parking facilities of the Project. Tenant agrees not to
overburden the parking facilities and

                                      -12-
<PAGE>

agrees to cooperate with Landlord and other tenants in the use of parking
facilities. Landlord shall provide the number of parking spaces set forth in the
Basic Lease Information for use by Tenant. Landlord shall not be responsible for
non-compliance by any other tenant or occupant of the Project with, or
Landlord's failure to enforce, any of the rules or regulations or CC&Rs or any
other terms or provisions of such tenant's or occupant's lease. Tenant shall
promptly comply with the reasonable requirements of any board of fire insurance
underwriters or other similar body now or hereafter constituted. Tenant shall
not do any act which shall in any way encumber the title of Landlord in and to
the Premises, the Building or the Project.

12.      ENVIRONMENTAL MATTERS

         12.1     Hazardous Materials. Except as is specifically permitted
pursuant to Exhibit E (as modified from time to time in accordance with Section
11 of the Lease), Tenant shall not cause nor permit, nor allow any of Tenant's
employees, agents, customers, visitors, invitees, licensees, contractors,
assignees or subtenants (individually, a "Tenant Party" and collectively,
"Tenant's Parties") to cause or permit, any Hazardous Materials to be brought
upon, stored, manufactured, generated, blended, handled, recycled, treated,
disposed or used on, under or about the Premises, the Building, the Common Area
or the Project, except for the Permitted Hazardous Materials and/or routine
office and janitorial supplies in usual and customary quantities stored, used
and disposed of in accordance with all applicable Environmental Laws. As used
herein, "Hazardous Materials" means any chemical, substance, material,
controlled substance, object, condition, waste, living organism or combination
thereof, whether solid, semi-solid, liquid or gaseous, which is or may be
hazardous to human health or safety or to the environment due to its
radioactivity, ignitability, corrosivity, reactivity, explosivity, toxicity,
carcinogenicity, mutagenicity, phytotoxicity, infectiousness or other harmful or
potentially harmful properties or effects, including, without limitation,
tobacco smoke, petroleum and petroleum products, asbestos, radon,
polychlorinated biphenyls (PCBs), refrigerants (including those substances
defined in the Environmental Protection Agency's "Refrigerant Recycling Rule,"
as amended from time to time) and all of those chemicals, substances, materials,
controlled substances, objects, conditions, wastes, living organisms or
combinations thereof which are now or become in the future listed, defined or
regulated in any manner by any Environmental Law based upon, directly or
indirectly, such properties or effects. As used herein, "Environmental Laws"
means any and all federal, state or local environmental, health and/or
safety-related laws, regulations, standards, decisions of courts, ordinances,
rules, codes, orders, decrees, directives, guidelines, permits or permit
conditions, currently existing and as amended, enacted, issued or adopted in the
future which are or become applicable to Tenant, the Premises, the Building, the
Common Area or the Project. Tenant and Tenant's Parties shall comply with all
Environmental Laws and promptly notify Landlord in writing of the violation of
any Environmental Law (or the presence of any Hazardous Materials, other than
the Permitted Hazardous Materials and/or office and janitorial supplies as
permitted above), or the spill and/or release of any Hazardous Materials
(including the Permitted Hazardous Materials), in, on, under or about the
Premises or the improvements or the soil or groundwater thereunder. Landlord
shall have the right to enter upon and inspect the Premises and to conduct
tests, monitoring and investigations. If such tests indicate the presence of any
environmental condition caused or exacerbated by Tenant or any Tenant Party or
arising during Tenant's or any Tenant Party's occupancy, Tenant shall reimburse
Landlord for the cost of conducting such tests. The phrase "environmental
condition" shall mean any adverse condition relating to any Hazardous Materials
or the environment, including surface water, groundwater, drinking water supply,
land, surface or subsurface strata or the ambient air and includes air, land and
water pollutants, noise, vibration, light and odors. In the event of any such
environmental condition, Tenant shall promptly take any and all steps necessary
to rectify the same to the satisfaction of the applicable agencies and Landlord,
or shall, at Landlord's election, reimburse Landlord, upon demand, for the cost
to Landlord of performing rectifying work. The reimbursement shall be paid to
Landlord in advance of Landlord's performing such work, based upon Landlord's
reasonable estimate of the cost thereof; and upon completion of such work by
Landlord, Tenant shall pay to Landlord any shortfall promptly after receipt of
Landlord's bills therefor or Landlord shall promptly refund to Tenant any excess
deposit, as the case may be.

         12.2     Tenant's Indemnification. Tenant shall indemnify, protect,
defend (by counsel acceptable to Landlord) and hold harmless Landlord and
Landlord's affiliated entities, and each of their respective members, managers,
partners, directors, officers, employees, shareholders, lenders, agents,
contractors, successors and assigns (individually and collectively,
"Indemnitees") from and against any and all claims, judgments, causes of action,
damages, penalties, fines, taxes, costs, liabilities, losses and expenses
arising at any time during or after the Term as a result (directly or
indirectly) of or in connection with (a) Tenant and/or any Tenant Party's breach
of this Section 12, or (b) the presence, spill and/or release of Hazardous
Materials on, under or about the Premises or other property

                                      -13-
<PAGE>

as a result (directly or indirectly) of Tenant's and/or any Tenant Party's
activities, including, without limitation, those involving any Hazardous
Materials (including the Permitted Hazardous Materials), or failure to act with
respect thereto, in connection with the Premises. This indemnity shall include,
without limitation, the cost of any required or necessary repair, cleanup or
detoxification, and the preparation and implementation of any closure,
monitoring or other required plans, whether such action is required or necessary
prior to or following the termination of this Lease. Neither the written consent
by Landlord to the presence of Hazardous Materials on, under or about the
Premises, nor the strict compliance by Tenant with all Environmental Laws, shall
excuse Tenant from Tenant's obligation of indemnification pursuant hereto.
Tenant's obligations pursuant to the foregoing indemnity shall survive the
expiration or termination of this Lease.

         12.3     Pre-existing Conditions and Indemnification

                  12.3.1   Landlord hereby represents to Tenant that, to its
actual knowledge, no environmental condition (as defined in Section 12.1) in
violation of law presently exists as of the Effective Date on, under, or within
the Premises (a "Pre-existing Condition"). For purposes of this Lease, current
"actual knowledge" shall mean the actual, present knowledge of Dan Marcus and
Jim Adams as of the date of this Lease, without investigation or inquiry of any
kind.

                  12.3.2   Landlord shall indemnify, protect, defend (by counsel
reasonably acceptable to Tenant) and hold harmless Tenant and its directors,
officers, employees, shareholders, lenders, and each of their respective
successors and assigns, from and against any and all claims, judgments, causes
of action, damages, penalties, fines, taxes, costs, liabilities, losses and
expenses (collectively, a "Claim") arising at any time during or after the Term
to the extent that such Claim results from any Pre-existing Condition which (i)
constitutes a breach of the representation set forth in Section 12.3.1, or (ii)
was authorized by Landlord or caused by the acts or omissions of Landlord (but
not the agents or contractors of Landlord or any other third party). The
indemnity obligation set forth in this Section 12.3.2 is limited to claims and
shall not include any consequential damages including, without limitation, any
relocation expenses, loss of revenue, or other losses incurred by any party.
Landlord's obligations pursuant to the foregoing indemnity shall survive the
termination of this Lease for a period of one (1) year and shall not apply to
any Claim not presented to Landlord in writing within said one (1) year period.

                  12.3.3   Landlord shall indemnify, protect, defend (by counsel
reasonably acceptable to Tenant) and hold harmless Tenant and its directors,
officers, employees, shareholders, and lenders, and each of their respective
successors and assigns, from and against any and all orders, penalties, fines,
administrative actions, or other proceedings (collectively, a "Compliance
Obligation") commenced by any governmental agency including, without limitation,
the United States Environmental Protection Agency as a result of any
Pre-existing Condition (except to the extent that such Pre-existing Condition is
caused or aggravated by the act or omission of Tenant and/or Tenant's Parties).
The indemnity obligation set forth in this Section 12.3.3 is limited to
Compliance Obligations and shall not include any consequential damages
including, without limitation, any relocation expenses, loss of revenue, or
other losses incurred by any party. Landlord's obligations pursuant to the
foregoing indemnity shall survive the termination of this Lease for a period of
one (1) year and shall not apply to any Compliance Obligation not presented to
Landlord in writing within said one (1) year period.

                  12.3.4   The indemnity obligations of Landlord set forth in
Sections 12.3.2 and 12.3.3 above shall not be binding upon any lender acquiring
Landlord's interest in the Premises and/or this Lease pursuant to any
foreclosure proceeding, deed in lieu of foreclosure, or other enforcement action
taken pursuant to a deed of trust or mortgage encumbering the Premises.

13.      DAMAGE AND DESTRUCTION

         13.1     Casualty. If the Premises or Building should be damaged or
destroyed by fire or other casualty, Tenant shall give immediate written notice
to Landlord. Within thirty (30) days after receipt from Tenant of such written
notice, Landlord shall notify Tenant whether, after the date of the issuance of
permits for the necessary repair or reconstruction of the portion of the
Building or the Premises which was damaged, the necessary repairs can reasonably
be made: (a) within ninety (90) days; (b) in more than ninety (90) days but in
less than one hundred eighty (180) days; or (c) in more than one hundred eighty
(180) days.

                                      -14-
<PAGE>

                  13.1.1   Less Than 90 Days. If the Premises or Building should
be damaged only to such extent that rebuilding or repairs can reasonably be
completed within ninety (90) days after the issuance of permits for the
necessary repair or reconstruction of the portion of the Building or Premises
which was damaged or destroyed, this Lease shall not terminate and, provided
that insurance proceeds are available to fully repair the damage, subject to
Section 13.2 below, Landlord shall repair the Premises, except that Landlord
shall not be required to rebuild, repair or replace Tenant's Property which may
have been placed in, on or about the Premises by or for the benefit of Tenant.
If Tenant is required to vacate all or a portion of the Premises during
Landlord's repair thereof, the Rent payable hereunder shall be abated
proportionately on the basis of the size of the area of the Premises that is
damaged (i.e., the number of square feet of floor area of the Premises that is
damaged compared to the total square footage of the floor area of the Premises)
from the date Tenant vacates all or a portion of the Premises that was damaged
only to the extent rental abatement insurance proceeds are received by Landlord
(or would have been received but for Landlord's failure to carry the insurance
required to be carried by Landlord pursuant to Section 8.1 above) and only
during the period the Premises are unfit for occupancy.

                  13.1.2   Greater Than 90 Days. If the Premises or Building
should be damaged only to such extent that rebuilding or repairs can reasonably
be completed in more than ninety (90) days but in less than one hundred eighty
(180) days after the issuance of permits for the necessary repair or
reconstruction of the portion of the Building or Premises which was damaged or
destroyed, then Landlord shall have the option of: (a) terminating the Lease
effective upon the occurrence of such damage, in which event the Rent shall be
abated from the date Tenant vacates the Premises; or (b) electing to repair the
Premises, provided insurance proceeds are available (or such proceeds would have
been available but for Landlord's failure to carry insurance as described in
Section 8.1 above) to fully repair the damage, except that Landlord shall not be
required to rebuild, repair or replace Tenant's Property which may have been
placed in, on or about the Premises by or for the benefit of Tenant. If Tenant
is required to vacate all or a portion of the Premises during Landlord's repair
thereof, the Rent payable hereunder shall be abated proportionately on the basis
of the size of the area of the Premises that is damaged (i.e., the number of
square feet of floor area of the Premises that is damaged compared to the total
square footage of the floor area of the Premises) from the date Tenant vacates
all or a portion of the Premises that was damaged only to the extent rental
abatement insurance proceeds are received by Landlord (or such proceeds would
have been received by Landlord but for Landlord's failure to carry rental
abatement insurance as described in Section 8.1 above) and only during the
period the Premises are unfit for occupancy. In the event that Landlord should
fail to substantially complete such repairs within one hundred eighty (180) days
after the issuance of permits for the necessary repair or reconstruction of the
portion of the Building or Premises which was damaged or destroyed, (such period
to be extended for delays caused by Tenant or because of any items of Force
Majeure, as hereinafter defined) and Tenant has not re-occupied the Premises,
Tenant shall have the right, as Tenant's exclusive remedy, within ten (10) days
after the expiration of such one hundred eighty (180) day period, and provided
that such repairs have not been substantially completed within such ten (10) day
period, to terminate this Lease by delivering written notice to Landlord as
Tenant's exclusive remedy, whereupon all rights hereunder shall cease and
terminate thirty (30) days after Landlord's receipt of such notice.

                  13.1.3   Greater Than 180 Days. If the Premises or Building
should be so damaged that rebuilding or repairs cannot be completed within one
hundred eighty (180) days after the issuance of permits for the necessary repair
or reconstruction of the portion of the Building or Premises which was damaged
or destroyed, either Landlord or Tenant may terminate this Lease by giving
written notice within ten (10) days after notice from Landlord specifying such
time period of repair; and this Lease shall terminate and the Rent shall be
abated from the date Tenant vacates the Premises. In the event that neither
party elects to terminate this Lease, Landlord shall promptly commence and
diligently prosecute to completion the repairs to the Building or Premises,
provided insurance proceeds are available (or such proceeds would have been
available but for Landlord's failure to carry insurance as described in Section
8.1 above) to repair the damage except that Landlord shall not be required to
rebuild, repair or replace Tenant's Property which may have been placed in, on
or about the Premises by or for the benefit of Tenant. If Tenant is required to
vacate all or a portion of the Premises during Landlord's repair thereof, the
Rent payable hereunder shall be abated proportionately on the basis of the size
of the area of the Premises that is damaged (i.e., the number of square feet of
floor area of the Premises that is damaged compared to the total square footage
of the floor area of the Premises), from the date Tenant vacates all or a
portion of the Premises that was damaged only to the extent rental abatement
insurance proceeds are received by Landlord (or such proceeds would have been
received by Landlord but for Landlord's failure to carry rental abatement
insurance as described in Section 8.1 above) and only during the period that the
Premises are unfit for occupancy.

                                      -15-
<PAGE>

                  13.1.4   Casualty During the Last Year of the Lease Term.
Notwithstanding any other provisions hereof, if the Premises or the Building
shall be damaged within the last year of the Lease Term, and if the cost to
repair or reconstruct the portion of the Building or the Premises which was
damaged or destroyed shall exceed Landlord's then-applicable insurance
deductible, then, irrespective of the time necessary to complete such repair or
reconstruction, Landlord shall have the right, in its sole discretion, to
terminate the Lease effective upon the occurrence of such damage, in which event
the Rent shall be abated from the date Tenant vacates the Premises. The
foregoing right shall be in addition to any other right and option of Landlord
under this Section 13.

         13.2     Tenant's Fault. If the Premises or any portion of the Building
is damaged resulting from the negligence or breach of this Lease by Tenant or
any of Tenant's Parties, Rent shall not be reduced during the repair of such
damage and Tenant shall be liable to Landlord for the cost of the repair caused
thereby to the extent such cost is not covered by insurance proceeds received by
Landlord.

         13.3     Uninsured Casualty. Tenant shall be responsible for and shall
pay to Landlord Tenant's Share of any deductible or retention amount payable
under the property insurance for the Building. Notwithstanding Section 13.1, in
the event that the Premises or any portion of the Building is damaged to the
extent Tenant is unable to use the Premises and such damage is not covered by
insurance proceeds received by Landlord or in the event that the holder of any
indebtedness secured by the Premises requires that the insurance proceeds be
applied to such indebtedness, then Landlord shall have the right at Landlord's
option either (i) to repair such damage as soon as reasonably possible at
Landlord's expense, or (ii) to give written notice to Tenant within thirty (30)
days after the date of the occurrence of such damage of Landlord's intention to
terminate this Lease as of the date of the occurrence of such damage. In the
event Landlord elects to terminate this Lease, Tenant shall have the right
within ten (10) days after receipt of such notice to give written notice to
Landlord of Tenant's commitment to pay the cost of repair of such damage, in
which event this Lease shall continue in full force and effect, and Landlord
shall make such repairs as soon as reasonably possible subject to the following
condition: Tenant shall deposit with Landlord Landlord's estimated cost of such
repairs not later than ten (10) days prior to Landlord's commencement of the
repair work. If the cost of such repairs exceeds the amount deposited, Tenant
shall reimburse Landlord for such excess cost within fifteen (15) days after
receipt of an invoice from Landlord. Any amount deposited by Tenant in excess of
the cost of such repairs shall be refunded within thirty (30) days of Landlord's
final payment to Landlord's contractor. If Tenant does not give such notice
within the ten (10) day period, or fails to make such deposit as required, this
Lease shall terminate automatically as of the date of the occurrence of the
damage.

         13.4     Waiver. With respect to any damage or destruction which
Landlord is obligated to repair or may elect to repair, Tenant waives all rights
to terminate this Lease pursuant to rights otherwise presently or hereafter
accorded by law.

14.      EMINENT DOMAIN

         14.1     Total Condemnation. If all of the Premises is condemned by
eminent domain, inversely condemned or sold under threat of condemnation for any
public or quasi-public use or purpose ("Condemned"), this Lease shall terminate
as of the earlier of the date the condemning authority takes title to or
possession of the Premises, and Rent shall be adjusted to the date of
termination.

         14.2     Partial Condemnation. If any portion of the Premises or the
Building is Condemned and such partial condemnation materially impairs Tenant's
ability to use the Premises for Tenant's business, Landlord shall have the
option of either (i) relocating Tenant to comparable space within the Project or
(ii) terminating this Lease as of the earlier of the date title vests in the
condemning authority or as of the date an order of immediate possession is
issued and Rent shall be adjusted to the date of termination. In the event of
relocation, Landlord shall pay the cost of constructing tenant improvements in
the new premises that are substantially equivalent to the improvements made
pursuant to the Work Letter, provided that Landlord receive from the condemning
authority proceeds sufficient to construct such improvements. If such partial
condemnation does not materially impair Tenant's ability to use the Premises for
the business of Tenant, Landlord shall promptly restore the Premises to the
extent of any condemnation proceeds recovered by Landlord, excluding the portion
thereof lost in such condemnation, and this Lease shall continue in full force
and effect except that after the date of such title vesting or order of
immediate possession Rent shall be adjusted as reasonably determined by
Landlord.

                                      -16-
<PAGE>

         14.3     Award. If the Premises are wholly or partially Condemned,
Landlord shall be entitled to the entire award paid for such condemnation, and
Tenant waives any claim to any part of the award from Landlord or the condemning
authority; provided, however, Tenant shall have the right to recover from the
condemning authority such compensation as may be separately awarded to Tenant in
connection with costs in removing Tenant's merchandise, furniture, fixtures,
leasehold improvements and equipment to a new location, for business
interruption, loss of good will or other consequential damages. No condemnation
of any kind shall be construed to constitute an actual or constructive eviction
of Tenant or a breach of any express or implied covenant of quiet enjoyment.

         14.4     Temporary Condemnation. In the event of a temporary
condemnation not extending beyond the Term, this Lease shall remain in effect,
Tenant shall continue to pay Rent and Tenant shall receive any award made for
such condemnation except damages to any of Landlord's property. If a temporary
condemnation is for a period which extends beyond the Term, this Lease shall
terminate as of the date of initial occupancy by the condemning authority and
any such award shall be distributed in accordance with the preceding section. If
a temporary condemnation remains in effect at the expiration or earlier
termination of this Lease, Tenant shall pay Landlord the reasonable cost of
performing any obligations required of Tenant with respect to the surrender of
the Premises.

15.      DEFAULT

         15.1     Events of Defaults. The occurrence of any of the following
events shall, at Landlord's option, constitute an "Event of Default":

                  15.1.1   Abandonment of the Premises for a period of thirty
(30) consecutive days;

                  15.1.2   Failure to pay Rent on the date when due and the
failure continuing for a period of five (5) days after such payment is due;

                  15.1.3   Failure to perform Tenant's covenants and obligations
hereunder (except default in the payment of Rent) where such failure continues
for a period of thirty (30) days after written notice from Landlord; provided,
however, if the nature of the default is such that more than thirty (30) days
are reasonably required for its cure, Tenant shall not be deemed to be in
default if Tenant commences the cure within ten (10) days after written notice
from Landlord and diligently and continuously prosecutes such cure to
completion;

                  15.1.4   The making of a general assignment by Tenant for the
benefit of creditors; the filing of a voluntary petition by Tenant or the filing
of an involuntary petition by any of Tenant's creditors seeking the
rehabilitation, liquidation or reorganization of Tenant under any law relating
to bankruptcy, insolvency or other relief of debtors and, in the case of an
involuntary action, the failure to remove or discharge the same within sixty
(60) days of such filing; the appointment of a receiver or other custodian to
take possession of substantially all of Tenant's assets or this leasehold;
Tenant's insolvency or inability to pay Tenant's debts or failure generally to
pay Tenant's debts when due; any court entering a decree or order directing the
winding up or liquidation of Tenant or of substantially all of Tenant's assets;
Tenant taking any action toward the dissolution or winding up of Tenant's
affairs; the cessation or suspension of Tenant's use of the Premises; or the
attachment, execution or other judicial seizure of substantially all of Tenant's
assets or this leasehold;

                  15.1.5   The making of any material misrepresentation or
omission by Tenant or any successor in interest of Tenant in any materials
delivered by or on behalf of Tenant to Landlord or Landlord's lender pursuant to
this Lease; or

                  15.1.6   The occurrence of an Event of Default set forth in
Section 15.1.4 or 15.1.5 with respect to any guarantor of this Lease, if
applicable.

         15.2     Remedies

                  15.2.1   Termination. In the event of the occurrence of any
Event of Default, Landlord shall have the right to give a written termination
notice to Tenant (which notice may be the notice given under Section 15.1 above,
if applicable, and which notice shall be in lieu of any notice required by
O.R.S. Section 105.120 or any other

                                      -17-
<PAGE>

Oregon law) and, on the date specified in such notice, this Lease shall
terminate unless on or before such date all arrears of Rent and all other sums
payable by Tenant under this Lease and all costs and expenses incurred by or on
behalf of Landlord hereunder shall have been paid by Tenant and all other Events
of Default at the time existing shall have been fully remedied to the
satisfaction of Landlord.

                           15.2.1.1 Repossession. Following termination, without
prejudice to other remedies Landlord may have, Landlord may (i) peaceably
re-enter the Premises upon voluntary surrender by Tenant or remove Tenant
therefrom and any other persons occupying the Premises, using such legal
proceedings, or other procedures permitted by applicable law, as may be
available; (ii) repossess the Premises or relet the Premises or any part thereof
for such term (which may be for a term extending beyond the Term), at such
rental and upon such other terms and conditions as Landlord in Landlord's sole
discretion shall determine, with the right to make reasonable alterations and
repairs to the Premises; and (iii) remove all personal property therefrom.

                           15.2.1.2 Unpaid Rent. Landlord shall have all the
rights and remedies of a landlord provided by Applicable Law, including the
right to recover from Tenant: (a) the worth, at the time of award, of the unpaid
Rent that had been earned at the time of termination, (b) the worth, at the time
of award, of the amount by which the unpaid Rent that would have been earned
after the date of termination until the time of award exceeds the amount of loss
of rent that Tenant proves could have been reasonably avoided, (c) the worth, at
the time of award, of the amount by which the unpaid Rent for the balance of the
Term after the time of award exceeds the amount of the loss of rent that Tenant
proves could have been reasonably avoided, and (d) any other amount, and court
costs, necessary to compensate Landlord for all detriment proximately caused by
Tenant's default. The phrase "worth, at the time of award," as used in (a) and
(b) above, shall be computed at the Applicable Interest Rate, and as used in (c)
above, shall be computed by discounting such amount at the discount rate of the
Federal Reserve Bank of San Francisco at the time of award plus one percent
(1%).

                  15.2.2   Continuation. Even though an Event of Default may
have occurred, this Lease shall continue in effect for so long as Landlord does
not terminate Tenant's right to possession; and Landlord may enforce all of
Landlord's rights and remedies under this Lease allowed by law ("lessor" may
continue the Lease in effect after "lessee's" breach and abandonment and recover
Rent as it becomes due) to recover Rent as it becomes due. Landlord, without
terminating this Lease, may, during the period Tenant is in default, enter the
Premises and relet the same, or any portion thereof, to third parties for
Tenant's account and Tenant shall be liable to Landlord for all costs Landlord
incurs in reletting the Premises, including, without limitation, brokers'
commissions, expenses of remodeling the Premises and like costs. Reletting may
be for a period shorter or longer than the remaining Term. Tenant shall continue
to pay the Rent on the date the same is due. No act by Landlord hereunder,
including acts of maintenance, preservation or efforts to lease the Premises or
the appointment of a receiver upon application of Landlord to protect Landlord's
interest under this Lease, shall terminate this Lease unless Landlord notifies
Tenant that Landlord elects to terminate this Lease. In the event that Landlord
elects to relet the Premises, the rent that Landlord receives from reletting
shall be applied to the payment of, first, any indebtedness from Tenant to
Landlord other than Base Rent and Tenant's Share of Operating Expenses
(including Real Property Taxes); second, all costs, including maintenance,
incurred by Landlord in reletting; and, third, Base Rent and Tenant's Share of
Operating Expenses (including Real Property Taxes) under this Lease. After
deducting the payments referred to above, any sum remaining from the rental
Landlord receives from reletting shall be held by Landlord and applied in
payment of future Rent as Rent becomes due under this Lease. In no event, and
notwithstanding anything in Section 16 to the contrary, shall Tenant be entitled
to any excess rent received by Landlord. If, on the date Rent is due under this
Lease, the rent received from the reletting is less than the Rent due on that
date, Tenant shall pay to Landlord, in addition to the remaining Rent due, all
costs, including maintenance, which Landlord incurred in reletting the Premises
that remain after applying the rent received from reletting as provided
hereinabove. So long as this Lease is not terminated, Landlord shall have the
right to remedy any default of Tenant, to maintain or improve the Premises, to
cause a receiver to be appointed to administer the Premises and new or existing
subleases and to add to the Rent payable hereunder all of Landlord's reasonable
costs in so doing, with interest at the Applicable Interest Rate from the date
of such expenditure. Landlord shall have no duty to relet the Premises so long
as it has other unleased space available in the Project.

         15.3     Cumulative. Each right and remedy of Landlord provided for
herein or now or hereafter existing at law, in equity, by statute or otherwise
shall be cumulative and shall not preclude Landlord from exercising any other
rights or remedies provided for in this Lease or now or hereafter existing at
law or in equity, by statute or

                                      -18-
<PAGE>

otherwise. No payment by Tenant of a lesser amount than the Rent nor any
endorsement on any check or letter accompanying any check or payment as Rent
shall be deemed an accord and satisfaction of full payment of Rent; and Landlord
may accept such payment without prejudice to Landlord's right to recover the
balance of such Rent or to pursue other remedies.

16.      ASSIGNMENT AND SUBLETTING. Tenant shall not assign, sublet or
otherwise transfer, whether voluntarily or involuntarily or by operation of law,
the Premises or any part thereof without Landlord's prior written approval,
which shall not be unreasonably withheld; provided, however, Tenant agrees it
shall be reasonable for Landlord to disapprove of a requested sublease or
assignment, if the proposed subtenant or assignee does not have a tangible net
worth (as determined in accordance with generally accepted accounting principles
consistently applied) equal to or greater than that of Tenant as of the date of
the Lease as shown in the financial information provided to Landlord, or if the
proposed subtenant or assignee is currently a tenant in any other space leased
by Landlord or if such proposed subtenant or assignee is in the process of
negotiation with Landlord to lease other space owned or managed by Landlord. The
merger of Tenant with any other entity in which Tenant does not retain a
controlling ownership or beneficial interest or the transfer of any controlling
or managing ownership or beneficial interest in Tenant, or the assignment of a
substantial portion of the assets of Tenant, whether or not located at the
Premises, shall constitute an assignment hereunder. If Tenant desires to assign
this Lease or sublet any or all of the Premises, Tenant shall give Landlord
written notice thereof with copies of all related documents and agreements
associated with the assignment or sublease, including without limitation, the
financial statements of any proposed assignee or subtenant, forty-five (45) days
prior to the anticipated effective date of the assignment or sublease. Tenant
shall pay Landlord's reasonable attorneys' fees incurred in the review of such
documentation plus an administrative fee of Five Hundred Dollars ($500.00) for
each proposed transfer. Landlord shall have a period of thirty (30) days
following receipt of such notice and all related documents and agreements to
notify Tenant in writing of Landlord's approval or disapproval of the proposed
assignment or sublease. If Landlord fails to notify Tenant in writing of such
election, Landlord shall be deemed to have disapproved such assignment or
subletting. This Lease may not be assigned by operation of law. If the proposed
assignment or sublease is for substantially the remainder of the Term, Landlord
may terminate the Lease (or in the case of a partial sublease, terminate the
Lease with respect to the portion of the Premises proposed to be subject to the
sublease) by giving written notice to Tenant within such thirty (30) day period.
Any purported assignment or subletting contrary to the provisions hereof shall
be void and shall constitute an Event of Default hereunder. If Tenant receives
rent or other consideration for any such transfer in excess of the Rent, or in
case of the sublease of a portion of the Premises, in excess of such Rent that
is fairly allocable to such portion, after appropriate adjustments to assure
that all other payments required hereunder are appropriately taken into account,
Tenant shall pay Landlord one hundred percent (100%) of the difference between
each such payment of rent or other consideration and the Rent required
hereunder. Landlord may, without waiving any rights or remedies, collect rent
from the assignee, subtenant or occupant and apply the net amount collected to
the Rent herein reserved and apportion any excess rent so collected in
accordance with the terms of the preceding sentence. Such acceptance of Rent
shall in no event be deemed to imply that Landlord is approving a subtenant or
assignee which Landlord has not approved in writing pursuant to the requirements
of this Section 16. Tenant shall continue to be liable as a principal and not as
a guarantor or surety to the same extent as though no assignment had been made.
Landlord may consent to subsequent assignments or subletting of this Lease or
amendments or modifications to the Lease by assignees of Tenant without
notifying Tenant or any successor of Tenant and without obtaining their consent.
No permitted assignment (but excluding a permitted sublease) shall be effective
until there has been delivered to Landlord a counterpart of the assignment
instrument in which the assignee agrees to be and remain jointly and severally
liable with Tenant for the payment of Rent pertaining to the Premises and for
the performance of all the terms and provisions of this Lease relating thereto
arising on or after the date of the transfer.

17.      ESTOPPEL, ATTORNMENT AND SUBORDINATION

         17.1     Estoppel. Within ten (10) days after written request by
Landlord, Tenant shall deliver an estoppel certificate duly executed (and
acknowledged if required by any lender), substantially in the form attached
hereto as Exhibit H, or in such other form as may be acceptable to the lender,
which form may include some or all of the provisions contained in Exhibit H, to
any proposed mortgagee, purchaser or Landlord. Tenant's failure to deliver said
statement in such time period shall be an Event of Default hereunder and shall
be conclusive upon Tenant that (a) this Lease is in full force and effect,
without modification except as may be represented by Landlord; (b) there are no
uncured defaults in Landlord's performance and Tenant has no right of offset,
counterclaim or deduction against Rent hereunder; and (c) no more than one
month's Base Rent has been paid in advance. If any financier

                                      -19-
<PAGE>

should require that this Lease be amended (other than in the description of the
Premises, the Term, the Permitted Use, the Rent or as will substantially,
materially or adversely affect the rights of Tenant), Landlord shall give
written notice thereof to Tenant, which notice shall be accompanied by a Lease
supplement embodying such amendments. Tenant shall, within ten (10) days after
the receipt of Landlord's notice, execute and deliver to Landlord the tendered
Lease supplement. If Tenant fails to deliver to Landlord the tendered Lease
supplement within ten (10) days after receipt of Landlord's notice, Tenant shall
be deemed to have given Landlord a power of attorney to execute such supplement
on behalf of Tenant.

         17.2     Subordination. This Lease shall be subject and subordinate to
all ground leases, master leases and the lien of all mortgages and deeds of
trust which now or hereafter affect the Premises or the Project or Landlord's
interest therein, and all amendments thereto, provided that Tenant receives a
Subordination, Nondisturbance and Attornment Agreement ("SNDA") in the form
attached hereto as Exhibit I (or such other form as may be commercially
reasonable which form may include some or all of the provisions contained in
Exhibit I, so long as such form of SNDA includes a non-disturbance agreement in
favor of Tenant) or as otherwise may be required by the applicable lender,
ground lessee and/or master lessor (so long as such documentation includes a
non-disturbance agreement in favor of Tenant). If requested, Tenant shall
execute and deliver to Landlord within ten (10) days after Landlord's request
whatever documentation that may reasonably be required to further effect the
provisions of this paragraph including an SNDA in the form attached hereto as
Exhibit I (or such other form as may be commercially reasonable which form may
include some or all of the provisions contained in Exhibit I, so long as such
form of SNDA includes a non-disturbance agreement in favor of Tenant) or as
otherwise may be required by the applicable lender, ground lessee and/or master
lessor (so long as such documentation includes a non-disturbance agreement in
favor of Tenant).

         17.3     Attornment. Tenant hereby agrees that Tenant will recognize as
its landlord under this Lease and shall attorn to any person succeeding to the
interest of Landlord in respect of the land and the buildings governed by this
Lease upon any foreclosure of any mortgage upon such land or buildings or upon
the execution of any deed in lieu of foreclosure in respect to such deed of
trust. If requested, Tenant shall execute and deliver an instrument or
instruments confirming its attornment as provided for herein; provided, however,
that no such beneficiary or successor-in-interest shall be bound by any payment
of Base Rent for more than one (1) month in advance, or any amendment or
modification of this Lease made without the express written consent of such
beneficiary where such consent is required under applicable loan documents.

18.      MISCELLANEOUS

         18.1     General

                  18.1.1   Entire Agreement. This Lease sets forth all the
agreements between Landlord and Tenant concerning the Premises; and there are no
agreements either oral or written other than as set forth herein.

                  18.1.2   Time of Essence. Time is of the essence of this
Lease.

                  18.1.3   Attorneys' Fees. In any action or proceeding which
either party brings against the other to enforce its rights hereunder, the
nonprevailing party shall pay all costs incurred by the prevailing party,
including reasonable attorneys' fees, which amounts shall be apart of the
judgment in said action or proceeding.

                  18.1.4   Severability. If any provision of this Lease or the
application of any such provision shall be held by a court of competent
jurisdiction to be invalid, void or unenforceable to any extent, the remaining
provisions of this Lease and the application thereof shall remain in full force
and effect and shall not be affected, impaired or invalidated.

                  18.1.5   Law. This Lease shall be construed and enforced in
accordance with the laws of the state in which the Premises are located.

                                      -20-
<PAGE>

                  18.1.6   No Option. Submission of this Lease to Tenant for
examination or negotiation does not constitute an option to lease, offer to
lease or a reservation of, or option for, the Premises; and this document shall
become effective and binding only upon the execution and delivery hereof by
Landlord and Tenant.

                  18.1.7   Successors and Assigns. This Lease shall be binding
upon and inure to the benefit of the successors and assigns of Landlord and,
subject to compliance with the terms of Section 16, Tenant.

                  18.1.8   Third Party Beneficiaries. Nothing herein is intended
to create any third party benefit.

                  18.1.9   Memorandum of Lease. On or before fifteen (15)
business days following a written request by either Landlord or Tenant, the
parties agree to execute and record a short form memorandum of this Lease, in a
recordable form reasonably acceptable to Landlord and Tenant. Within five (5)
business days following the expiration or earlier termination of this Lease,
Tenant shall execute (and have properly notarized) and deliver to Landlord a
Quitclaim Deed, in recordable form, quitclaiming, terminating and forever
surrendering any and all right, title or interests Tenant may have in or to the
Premises.

                  18.1.10  Agency, Partnership or Joint Venture. Nothing
contained herein nor any acts of the parties hereto shall be deemed or construed
by the parties hereto, nor by any third party, as creating the relationship of
principal and agent or of partnership or of joint venture by the parties hereto
or any relationship other than the relationship of landlord and tenant.

                  18.1.11  Merger. The voluntary or other surrender of this
Lease by Tenant or a mutual cancellation thereof or a termination by Landlord
shall not work a merger and shall, at the option of Landlord, terminate all or
any existing subtenancies or may, at the option of Landlord, operate as an
assignment to Landlord of any or all of such subtenancies.

                  18.1.12  Headings. Section headings have been inserted solely
as a matter of convenience and are not intended to define or limit the scope of
any of the provisions contained therein.

                  18.1.13  Security Measures. Tenant hereby acknowledges that
Landlord shall have no obligation to provide a guard service or other security
measures whatsoever. Tenant assumes all responsibility for the protection of the
Premises, Tenant, its agents and invitees and their property from the acts of
third parties.

         18.2     Signs. All signs and graphics of every kind visible in or from
public view or corridors, the Common Areas or the exterior of the Premises
(whether located inside or outside of the Premises) shall be subject to
Landlord's prior written approval (not to be unreasonably withheld) and shall be
subject to the CC&Rs and any applicable governmental laws, ordinances, and
regulations and in compliance with Landlord's signage program (if any). Tenant
shall remove all such signs and graphics prior to the termination of this Lease.
Such installations and removals shall be made in such manner as to avoid injury
or defacement of the Premises; and Tenant shall repair any injury or defacement,
including without limitation, discoloration caused by such installation or
removal.

         18.3     Waiver. No waiver of any default or breach hereunder shall be
implied from any omission to take action on account thereof, notwithstanding any
custom and practice or course of dealing. No waiver by either party of any
provision under this Lease shall be effective unless in writing and signed by
such party. No waiver shall affect any default other than the default specified
in the waiver and then such waiver shall be operative only for the time and to
the extent therein stated. Waivers of any covenant shall not be construed as a
waiver of any subsequent breach of the same.

         18.4     Financial Statements. Tenant shall provide, and cause each
Guarantor, if applicable, to provide to any lender, any purchaser of the
Building and/or the Project or Landlord, within ten (10) days after request, a
current, accurate, audited (or reviewed and certified by Tenant) financial
statement for Tenant and Tenant's business and financial statements for Tenant
and Tenant's business for each of the three (3) years prior to the current
financial statement year prepared under generally accepted accounting principles
consistently applied. Tenant shall also provide within said 10-day period such
other financial information as may be reasonably required by Landlord, any

                                      -21-
<PAGE>

purchaser of the Building and/or the Project or any lender; Landlord shall keep
or cause to be kept all such financial information strictly confidential.

         18.5     Limitation of Liability. The obligations of Landlord under
this Lease are not personal obligations of the individual partners, members,
managers, directors, officers, shareholders, agents or employees of Landlord;
and, subject to this Section 18.5, Tenant shall look solely to the Building and
the Land for satisfaction of any liability of Landlord and shall not look to
other assets of Landlord nor seek recourse against the assets of the individual
partners, directors, officers, shareholders, agents or employees of Landlord.
Whenever Landlord transfers its interest, Landlord shall be automatically
released from further performance under this Lease and from all further
liabilities and expenses hereunder and the transferee of Landlord's interest
shall assume all liabilities and obligations of Landlord hereunder from the date
of such transfer, provided, however, Landlord shall remain liable for any
unperformed obligations arising prior to the date of such transfer.

         18.6     Notices. All notices to be given hereunder shall be in writing
and mailed postage prepaid by certified or registered mail, return receipt
requested, or delivered by personal or courier delivery, or sent by facsimile,
electronically confirmed, (immediately followed by one of the preceding
methods), to Landlord's Address and Tenant's Address, or to such other place as
Landlord or Tenant may designate in a written notice given to the other party.
Notices shall be deemed served upon the first attempted delivery by the U.S.
Postal Service, the courier or a recognized overnight delivery service, or upon
receipt of the facsimile prior to 5 p.m. on any business day, or, if after 5
p.m., on the next business day.

         18.7     Brokerage Commission. Landlord shall pay a brokerage
commission to Landlord's Broker specified in the Basic Lease Information in
accordance with a separate agreement between Landlord and Landlord's Broker.
Landlord shall have no further or separate obligation for payment of any
commissions or fees to any other broker or finder. Tenant warrants to Landlord
that Tenant's sole contact with Landlord or with the Premises in connection with
this transaction has been directly with Landlord, Landlord's Broker and Tenant's
Broker specified in the Basic Lease Information, and that no other broker or
finder can properly claim a right to a commission or a finder's fee based upon
contacts between the claimant and Tenant. Any commissions or fees payable to
Tenant's Broker with respect to this transaction shall be paid by Landlord's
Broker, and Landlord and Tenant shall have no obligation with respect thereto.
Subject to the foregoing, Tenant agrees to indemnify and hold Landlord harmless
from any claims or liability, including reasonable attorneys' fees, in
connection with a claim by any person for a real estate broker's commission,
finder's fee or other compensation based upon any statement, representation or
agreement of Tenant, and Landlord agrees to indemnify and hold Tenant harmless
from any such claims or liability, including reasonable attorneys' fees, based
upon any statement, representation or agreement of Landlord.

         18.8     Authorization. Each individual executing this Lease on behalf
of Tenant represents and warrants that he or she is duly authorized to execute
and deliver this Lease on behalf of Tenant and that such execution is binding
upon Tenant.

         18.9     Holding Over; Surrender

                  18.9.1   Holding Over. If Tenant holds over the Premises or
any part thereof after expiration of the Term, such holding over shall, at
Landlord's option, constitute a month-to-month tenancy, at a rent equal to one
hundred fifty percent (150%) of the Base Rent in effect immediately prior to
such holding over and shall otherwise be on all the other terms and conditions
of this Lease. This paragraph shall not be construed as Landlord's permission
for Tenant to hold over. Acceptance of Rent by Landlord following expiration or
termination shall not constitute a renewal of this Lease or extension of the
Term except as specifically set forth above. If Tenant fails to surrender the
Premises upon expiration or earlier termination of this Lease, Tenant shall
indemnify and hold Landlord harmless from and against all loss or liability
resulting from or arising out of Tenant's failure to surrender the Premises,
including, but not limited to, any amounts required to be paid to any tenant or
prospective tenant who was to have occupied the Premises after the expiration or
earlier termination of this Lease and any related attorneys' fees and brokerage
commissions.

                  18.9.2   Surrender. Upon the expiration or earlier termination
of this Lease, Tenant shall repair any damage to and restore the condition of
the Premises in accordance with Section 10.2. Tenant shall surrender the
Premises, together with all keys, to Landlord broom clean and in as good a
condition as when received, ordinary

                                      -22-
<PAGE>

wear and tear and damage by fire or casualty excepted. In addition, Tenant shall
remove any and all debris from the Common Area caused by Tenant and surrender
any portion of the Common Area regularly used by Tenant broom clean and in as
good a condition as when Tenant's use thereof commenced, ordinary wear and tear
and damage by fire or casualty excepted. Conditions existing because of Tenant's
failure to perform maintenance, repairs or replacements shall not be deemed
"reasonable wear and tear."

         18.10    Joint and Several. If Tenant consists of more than one person,
the obligation of all such persons shall be joint and several.

         18.11    Covenants and Conditions. Each provision to be performed by
Tenant hereunder shall be deemed to be both a covenant and a condition.

         18.12    Auctions. Tenant shall not conduct, nor permit to be
conducted, any auction upon the Premises without Landlord's prior written
consent. Landlord shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

         18.13    Consents. Except as otherwise provided elsewhere in this
Lease, Landlord's actual reasonable costs and expenses (including, but not
limited to, architects', attorneys', engineers' and other consultants' fees)
incurred in the consideration of, or response to, a request by Tenant for any
Landlord consent, including but not limited to, consents to an assignment, a
subletting or the presence or use of a Hazardous Material, shall be paid by
Tenant upon receipt of an invoice and supporting documentation therefor.
Landlord's consent to any act, assignment or subletting shall not constitute an
acknowledgment that no Event of Default or breach by Tenant of this Lease
exists, nor shall such consent be deemed a waiver of any then existing Event of
Default or breach, except as may be otherwise specifically stated in writing by
Landlord at the time of such consent. Except as otherwise set forth herein, the
failure to specify herein any particular condition to Landlord's consent shall
not preclude the imposition by Landlord at the time of consent of such further
or other conditions as are then reasonable with reference to the particular
matter for which consent is being given.

         18.14    Force Majeure. "Force Majeure" as used herein means delays
resulting from causes beyond the reasonable control of the other party,
including, without limitation, any delay caused by any action, inaction, order,
ruling, moratorium, regulation, statute, condition or other decision of any
private party or governmental agency having jurisdiction over any portion of the
Project, over the construction anticipated to occur thereon or over any uses
thereof, or by delays in inspections or in issuing approvals by private parties
or permits by governmental agencies, or by fire, flood, inclement weather,
strikes, lockouts or other labor or industrial disturbance (whether or not on
the part of agents or employees of either party hereto engaged in the
construction of the Premises), civil disturbance, order of any government, court
or regulatory body claiming jurisdiction or otherwise, act of public enemy, war,
riot, sabotage, blockage, embargo, failure or inability to secure materials,
supplies or labor through ordinary sources by reason of shortages or priority,
discovery of hazardous or toxic materials, earthquake, or other natural
disaster, delays caused by any dispute resolution process, or any cause
whatsoever beyond the reasonable control (excluding financial inability) of the
party whose performance is required, or any of its contractors or other
representatives, whether or not similar to any of the causes hereinabove stated.

         18.15    Mortgagee Protection. Tenant agrees to give any holder of any
mortgage or deed of trust secured by the Real Property, by registered or
certified mail or nationally recognized overnight delivery service, a copy of
any notice of default served upon the Landlord by Tenant, provided that, prior
to such notice, Tenant has been notified in writing (by way of service on Tenant
of a copy of assignment of rents and leases or otherwise) of the address of such
holder of a mortgage or deed of trust. Tenant further agrees that if Landlord
shall have failed to cure such default within thirty (30) days after such notice
to Landlord (or if such default cannot be cured or corrected within that time,
then such additional time as may be necessary if Landlord has commenced within
such thirty (30) day period and is diligently pursuing the remedies or steps
necessary to cure or correct such default), then the holder of any mortgage or
deed of trust shall have an additional sixty (60) days within which to cure or
correct such default (or if such default cannot be cured or corrected within
that time, then such additional time as may be necessary if such holder of any
mortgage or deed of trust has commenced within such sixty (60) day period and is
diligently pursuing the remedies or steps necessary to cure or correct such
default). Notwithstanding the foregoing, in no event shall any holder of any
mortgage or deed of trust have any obligation to cure any default of the
Landlord.

                                      -23-
<PAGE>

         18.16    Hazardous Substance Disclosure. Gasoline and other automotive
fluids, asbestos containing materials, maintenance fluids, copying fluids and
other office supplies and equipment, certain construction and finish materials,
tobacco smoke, cosmetics and other personal items may be present on the project.
Gasoline and other automotive fluids are found in the garage and parking areas
of the Project. Cleaning, lubricating and hydraulic fluids used in the operation
and maintenance of the Building are found in the utility areas of the Building
not generally accessible to Building occupants or the public. Many Building
occupants use copy machines and printers with associated fluids and toners, and
pens, markers, inks, and office equipment that may contain Hazardous Materials.
Certain adhesives, paints and other construction materials and finishes used in
portions of the Building may contain Hazardous Materials. The Building may from
time to time be exposed to tobacco smoke. Building occupants and other persons
entering the Building from time to time may use or carry prescription and
non-prescription drugs, perfumes, cosmetics and other toiletries, and foods and
beverages, some of which may contain Hazardous Materials. By its execution of
this Lease, Tenant acknowledges the notice set forth hereinabove.

         18.17    ADA Compliance. Notwithstanding Section 1.1 above, Landlord
warrants to Tenant that on the Commencement Date, the Premises (including any
improvements constructed by Landlord pursuant to the Work Letter) shall comply
with the requirements of the Americans with Disabilities Act [42 U.S.C. Section
12101 et seq.] ("ADA") as in effect and promulgated on the Commencement Date
(the "ADA Warranty"). The ADA Warranty shall not apply to any improvements or
alterations made by or at the request of Tenant (except as specifically set
forth in the Work Letter). Except as otherwise provided in this Lease, if the
Premises do not comply with the ADA Warranty, promptly after Landlord's receipt
of written notice from Tenant given within six (6) months after the Commencement
Date specifying in detail the nature and extent of such non-compliance,
Landlord, at Landlord's sole cost and expense, shall take such action as is
reasonably necessary to remedy such non-compliance.

         18.18    Addenda. The Addenda attached hereto, if any, and identified
with this Lease are incorporated herein by this reference as if fully set forth
herein.

         IN WITNESS WHEREOF, the parties have executed this Lease as of the date
set forth above.

"Landlord"                                         "Tenant"

CATELLUS DEVELOPMENT CORPORATION,                  SYNETICS SOLUTIONS INC.,
a Delaware corporation                             an Oregon corporation

By:  Catellus Commercial Group, LLC,               By: KOKI NAKAMURA
     a Delaware limited liability company          -----------------------------
     Its:  Duly Authorized Agent                   Name: Koki Nakamura
                                                   Its: CEO

     By: TWA
     ------------------------------------
     Name: ------------------------------          Date: -----------------------
     Title: -----------------------------

Date: 12-20-00                                     By: GREG MARVELL
                                                   -----------------------------
                                                   Name: Greg Marvell
                                                   Its: President

                                                   Date: 12/4/00

                                      -24-
<PAGE>

                                ADDENDUM TO LEASE

         THIS ADDENDUM TO LEASE ("Addendum") is attached to and constitutes an
integral part of the Lease between CATELLUS DEVELOPMENT CORPORATION, as
Landlord, and SYNETICS SOLUTIONS INC., Inc., as Tenant. The terms of this
Addendum shall be incorporated in the Lease for all purposes. In the event of a
conflict between the provisions of the Lease and the provisions of this
Addendum, this Addendum shall control.

         The following new Section is hereby added to the Lease which state in
their entirety as follows:

         19       Option to Extend Provided (i) Tenant is not in default under
the terms of this Lease at the time this renewal option is exercised or at the
commencement of the Extension Term (as hereinafter defined), (ii) Tenant is
occupying at least ninety percent (90%) of the Premises, including any expansion
space, and (iii) Landlord has not given more than two (2) notices of default in
any twelve (12) month period for nonpayment of monetary obligations, Tenant
shall have the option to renew this Lease for an additional period of sixty (60)
months ("Extension Term"). The Extension Term shall be on all the terms and
conditions of this Lease, except that Landlord shall have no additional
obligation for free rent, leasehold improvements or for any other tenant
inducements for the Extension Term. Base Rent during the Extension Term shall be
equal to the Base Rent set forth in the Basic Lease Information for one hundred
twenty-first (121st) month through the one hundred eightieth (180th) month of
the Lease Term and the Security Deposit will be increased to reflect any
increase in Base Rent payable under the Lease. There shall be no additional
extension terms beyond the Extension Term set forth herein. Tenant must exercise
its option to extend this Lease by giving Landlord written notice of its
election to do so no later than one hundred eighty (180) nor earlier than three
hundred sixty (360) days prior to the end of the initial Term (i.e. the last day
of the one hundred twentieth (120th) month). Any notice not given in a timely
manner shall be void, and Tenant shall be deemed to have waived its extension
rights. The extension option set forth herein is personal to Tenant and shall
not be included in any assignment of this Lease.

                   TA                                   KN
         --------------------                   --------------------
         Landlord's Initials                     Tenant's Initials

<PAGE>

                                    CATELLUS
                            Southshore Corporate Park

                               [MAP OF SITE PLAN]

                                  EXHIBIT A-1

<PAGE>

                               [MAP OF PREMISES]

                                  EXHIBIT A-2<PAGE>

                                                                    EXHIBIT 10.9

                            SALES AGREEMENT

This AGREEMENT made and entered as of April 1, 2004, by and among YASKAWA
ELECTRIC CORPORATION, a company organized and existing under the laws of Japan,
whose registered office is at 2-1, Shiroishi Kurosaki, Yahatanishi-Ku,
Kitakyusyu, Japan (hereinafter referred to as "YASKAWA"), and SYNETICS
Solutions, Inc., a corporation organized and existing under the laws of Oregon,
USA, whose registered office is at 18870 NE Riverside Parkway, Portland, Oregon,
97230, USA, (hereinafter referred to as "SYNETICS").

WITNESSETH THAT:

WHEREAS, YASKAWA is in the business of manufacturing and developing the
products.

WHEREAS, SYNETICS desires to secure the right to sell the Products hereinafter
defined in the Territory hereinafter referred to as "Territory".

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

ARTICLE 1 DEFINITIONS

1.1      "Products" as used herein shall mean those Products set forth in
         Schedule 1.1 of this Agreement.

1.2     "Territory" as used hereinafter shall mean Western Hemisphere.

ARTICLE 2 GRANT OF SALES RIGHTS

2.1      YASKAWA hereby grants SYNETICS (1) an exclusive right to sell the
         Products for use in semiconductor manufacturing equipment (including
         all components thereof, parts therefor and related services) sold to
         customers located in the Territory and (2) a nonexclusive right to sell
         the Products for use in semiconductor manufacturing equipment sold to
         subsidiaries of customers with world headquarters located in the
         Territory.

2,2      Notwithstanding 2.1, even if outside of the Territory SYNETICS may sell
         the Products exclusively to existing subsidiaries of Applied
         Materials, Inc., KLA-Tencor corporation, and Novellus Systems, Inc.

ARTICLE 3 PRICE AND PAYMENT

3.1      The price of the Products shall be set forth separately including
         Standard Exchange Rate (SER).

3.2      Taking into account the changes in the production cost, freight, market
         conditions and other factors that may affect the price of the Products,
         both parties have a right to propose the revision of the price of the
         Products at any time during the term of this AGREEMENT. Any price
         changes must be agreed to in writing by both parties. Standard
         (non-modified) Products will be priced to SYNETICS on annual basis,
         provided that YASKAWA shall give SYNETICS three months notice of any
         price increase.

3.3      YASKAWA warrants to SYNETICS that the prices charged to SYNETICS during
         the term of this

                                       1
<PAGE>
         Agreement shall be no higher than the prices YASKAWA charges to any
         other customer for comparable products and comparable services. In the
         event YASKAWA charges any other customer a price lower than the price
         YASKAWA charges SYNETICS for comparable products or services, YASKAWA
         shall promptly notify SYNETICS of such lower price, and SYNETICS shall
         be entitled to such lower price effective as of the date the lower
         price was charged to the other customer.

3.4      Unless otherwise mutually agreed, payment terms for the Products
         between SYNETICS and YASKAWA shall be in U.S. dollars. Payment from
         SYNETICS to YASKAWA will be due one hundred twenty (120) days after the
         bill of lading date, or at such other date as the parties may mutually
         agree.

3.5      In case that there is fluctuation between the applied conversion rate
         pursuant to Article 3.1 and exchange rate (yen/dollars) on the date of
         actual payment, YASKAWA and SYNETICS will share the exchange rate
         pricing impact based on the following formula.

         FOB JAPAN X * SER/(SER + A)/2

         A = "The average of the closing on buying and selling prices of
             New York City's Foreign Exchange Market during the last one
             month, which is given in the Chicago edition of The Wall
             Street Journal."

ARTICLE 4 SHIPMENT

4.1      YASKAWA shall in good faith make shipments in accordance with YASKAWA's
         separate sales acknowledgment to be issued and given to SYNETICS for
         each individual order from SYNETICS whose details are discussed and
         confirmed beforehand between YASKAWA and SYNETICS.

ARTICLE 5 WARRANTY

5.1      SYNETICS and YASKAWA recognize that the fundamental understanding of
         this Article 5 is to recover from failures as soon as possible and
         satisfy requirements of both parties' users.

         YASKAWA warrants the Products to be free from defects in material,
         design and workmanship (hereinafter called the "Warranty") for a period
         of twelve (12) months from the date of installation, or for a period of
         eighteen (18) months from the date of the Bill of Lading, whichever
         period expires first (such period shall hereinafter be called the
         "Warranty Period").

5.2      This Warranty shall be limited to repair or replacement of the
         defective parts by YASKAWA free of charge. In case within Warranty
         Period the defective parts will be sent back to YASKAWA for repair, the
         transportation fee shall be borne by YASKAWA. After finishing repair,
         YASKAWA shall return the repaired parts to SYNETICS at YASKAWA's
         expense. However if SYNETICS repairs the defective parts of the
         Products with prior written approval of YASKAWA, the necessary expenses
         thereof shall be borne by YASKAWA within the Territory.

ARTICLE 6 AFTER-SALES SERVICE

6.1      During the term of this Agreement, SYNETICS shall service all Products
         in the Territory sold by SYNETICS during the term of this Agreement.
         The domain of such service shall be clarified

                                       2
<PAGE>
         separately.

6.2      YASKAWA agrees to supply SYNETICS with adequate information and service
         instructions, manuals and spare parts lists in English, as the same may
         be in effect from time to time, and agrees to receive a reasonable
         number of technically qualified engineers of SYNETICS to give SYNETICS
         training on the service of the Products.

ARTICLE 7 TERM OF AGREEMENT

7.1      This Agreement shall effect five (5) years and thereafter, shall be
         renewed every year unless either party gives the other notice of its
         intent not to renew at least six (6) months prior to the next renewal
         date.

7.2      YASKAWA may change the right of SYNETICS to sell Products in the
         Territory from exclusive to non-exclusive if SYNETICS' annual purchase
         of robots from YASKAWA numbers less than the number of robots purchased
         by SYNETICS in calendar year 2003 (270 robots), provided that such
         number is adjusted annually in proportion to changes in the Global
         Semiconductor Wafer Fab Equipment Market as published in the Worldwide
         Semiconductor Equipment Market Statistics (SEMIS) Report (or successor
         thereto).

ARTICLE 8 TERMINATION

8.1      If there is any breach and/or violations of the provisions of this
         AGREEMENT by YASKAWA or SYNETICS during the term of this AGREEMENT, the
         defaulting party shall first of all endeavor to settle the matter as
         soon and amicably as possible to the satisfaction of the non-defaulting
         party.

         Unless the settlement of relevant matter is done within sixty (60) days
         after the notification of such default in writing by the non-defaulting
         party, such non-defaulting party has the right to cancel
         unconditionally this AGREEMENT in writing without payment of any
         compensation.

8.2      A non-involved party may terminate this Agreement by giving a written
         notice of termination to the other party if YASKAWA or SYNETICS:

         1)       makes an assignment for the benefit of creditors,

         2)       is the subject of any voluntary or involuntary case under the
                  applicable law regarding bankruptcy, insolvency,
                  reorganization, adjustment of debt or other form of relief for
                  debtors in any jurisdiction and, if involuntary, such case is
                  not dismissed within sixty (60) days,

         3)       has a receiver, trustee, liquidator for it or for any
                  substantial part of its property,

         4)       is the subject of dissolution or liquidation proceedings,

         5)       completes a consolidation or merger of such corporation with
                  or into a third party in which the shareholders of such
                  corporation immediately prior to such transaction or series of
                  related transactions shall own securities representing less
                  than a majority of the voting power of the surviving
                  corporation or entity immediately after such transaction or
                  series of related transactions,

         6)       discontinues the business relating to the Products for any
                  reason,

         7)       transfers whole or an important part of the business relating
                  to the Products to a third party,

         8)       is unlikely to fulfill its obligations under this Agreement
                  because of significant changes of its assets, credit or
                  business positions.

                                       3
<PAGE>
8.3      Upon termination of this Agreement, whether as herein provided or by
         operation of law or otherwise, all rights granted, or obligations
         undertaken hereunder shall terminate forthwith except:

         1)       YASKAWA's obligation to deliver to SYNETICS all orders for the
                  Products accepted by YASKAWA prior to the effective date of
                  termination,

         2)       YASKAWA's obligation to warrant such Products pursuant to
                  Article 5 of this Agreement,

         3)       SYNETICS' obligation provided for in Article 6 and 8 of this
                  Agreement,

         4)       SYNETICS' obligation to pay any amount which was or became due
                  to YASKAWA prior to termination, or becomes due after
                  termination, and

         5)       the licenses granted pursuant to Article 10 of this Agreement.

ARTICLE 9 CONFIDENTIALITY

During the term of this Agreement and thereafter both parties shall not disclose
any confidential information it may acquire in connection with the Products,
this Agreement or performance thereof. The obligations of this paragraph shall
not apply to information that is now or becomes generally known to the public,
information already known at the time of disclosure, information rightfully
received from a third party without obligation of confidentiality, and
information independently developed without use of the other party's
confidential information.

ARTICLE 10 CUSTOM DEVELOPMENTS

YASKAWA and SYNETICS will work together on custom development efforts as
requested by SYNETICS. SYNETICS agrees to bear the reasonable cost of such
development. SYNETICS shall have a perpetual, royalty free license, to use and
commercially exploit the work product in semiconductor equipment manufacturing,
which license shall be exclusive in the Territory.

ARTICLE 11 FORCE MAJEURE

Neither of the parties to this Agreement shall be liable for any obligation
under this Agreement, if fulfillment of such obligation has been delayed,
hindered or prevented by force majeure, including strikes, riots, lockouts,
civil commotion, war, or any circumstances beyond the control of the parties;
provided that if such inability to perform continues for a period in excess of
90 days, the non-involved party may terminate this Agreement upon thirty (30)
days' prior written notice. A party involved in such events shall give the other
party notice of the existence of any condition claimed to excuse the notifying
party's performance promptly upon discovery of same, and promptly upon cessation
of same.

ARTICLE 12 NOTICE

12.1     Any notice in connection with this AGREEMENT or performance thereunder
         shall be sent in Japanese or English to the following addresses or such
         other addresses as the parties may notify each other from time to time
         by a registered air mail or fax.

         TO:  YASKAWA ELECTRIC CORPORATION

                                       4
<PAGE>
              Robotics Automation Division
              2-1 Shiroishi Kurosaki
              Yahata-Nishi KU, Kitakyushu City
              Japan
              ATTN: Yoshikatsu Minami

         TO:  SYNETICS SOLUTIONS, INC.
              18870 NE Riverside Parkway,
              Portland, Oregon, 97230
              USA
              ATTN: Greg Marvell

12.2     All notices mentioned above shall be deemed to have been given at the
         time of dispatch.

ARTICLE 13 GOVERNING LAW AND ARBITRATION

13.1     The formation, Validity, construction and performance of this Agreement
         shall be governed by the laws of Oregon, USA.

13.2     Any disputes and controversies arising out of or relating to this
         Agreement or for the breach thereof that can not otherwise be settled
         amicably between the parties shall be submitted to arbitration to be
         carried out either in Tokyo, Japan or in Portland, Oregon, USA at the
         jurisdiction of the defendant. Such arbitration shall be conducted in
         accordance with the rules of the Japan-American Trade Arbitration
         Agreement of September 16, 1952. The decision of such arbitration
         proceedings shall be conclusive and binding upon the parties hereto.

ARTICLE 14 ASSIGNMENT

Neither this Agreement nor any rights or privileges under it shall be assignable
by either of the parties without the prior written consent of the other party.

ARTICLE 15 WAIVER OF BREACH

The failure of either party to require the performance of any terms of this
Agreement or the waiver by either party of any breach under this Agreement shall
not prevent a subsequent enforcement of such terms, nor be deemed a waiver of
any subsequent breach.

ARTICLE 16 ENTIRE AGREEMENT

This Agreement constitutes the entire and only agreement between the parties
hereto in relation to the sale of the Products.

ARTICLE 17 CHANGE OF AGREEMENT

This Agreement shall be changed, modified or amended by the parties, provided
that such change, modification or amendment shall be in writing and be signed by
respective parties.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement in duplicate
to be executed as of the

                                       5

<PAGE>
day and year first above written.

                                        Yaskawa Electric Corporation

                                        YOSHIKATSU MINAMI
                                        ------------------------------
                                        Yoshikatsu Minami
                                        General Manager
                                        Robotics Automation Division

                                        Synetics Solutions, Inc.

                                        GREG MARVELL
                                        ------------------------------
                                        Greg Marvell
                                        President and CEO

                                       6
<PAGE>

                             Schedule 1.1 "Products"

"Products" mean with the following type name consisting of the following units
made by YASKAWA used in the semiconductor industry.

1.       All of XU-RC series Product
         [RC] covers all of SCARA type clean manipulators with those
         controllers.

2.       All of XU-RV series Product
         [RV] covers all of SCARA type vacuum manipulators with those
         controllers

3.       All of XU-RW series Product
         [RW] covers all of SCARA type waterproof and/or chemical proof
         manipulators with those controllers.

4.       All of XU-ACP series Product
         [ACP] covers all of clean Pre-Aligners with those amplifiers and/or
         controllers.

5.       All of XU-AVP series Product
         [AVP] covers all of vacuum Pre-Aligners with those amplifiers and/or
         controllers

6.       All of XU-ACT series Product
         [ACT] covers all of X-Axis Units to be utilized with any RC series
         product.

                                       7

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