Document:

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                                                                    EXHIBIT 10.8

                         [FORM OF EMPLOYMENT AGREEMENT]

                             SIMPLE TECHNOLOGY, INC.

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT is dated March 10, 2000, between Simple Technology, Inc.
("Employer"), a California Corporation, and _______________________("Employee").

         In consideration of the mutual promises and covenants contained in this
Agreement, the parties agree as follows:

1.       EMPLOYMENT  DUTIES.  Employer  agrees to employ Employee in the
position of __________________________________, beginning on March 10, 2000, and
Employee agrees to serve in that position or in such other positions  (including
positions with a wholly-owned  subsidiary or partnership controlled by Employer)
as Employee may be assigned from time to time by Employer. Employee shall report
to the  Employer's  Board of Directors  or, to such other  person as  management
designates. Employee shall have such duties as are assigned from time to time by
Employer and as are consistent with such position. In connection with Employee's
employment by Employer,  Employee shall be based at Employer's place of business
at 3001 and 3009  Daimler  Street,  Santa  Ana,  CA 92705.

2.       TIME AND  EFFORT, EXCLUSIVITY OF EMPLOYMENT. Employee shall faithfully,
honestly and diligently serve Employer, devote all of Employee's working time,
attention, knowledge and skill to Employee's employment hereunder and use
Employee's best efforts to promote the business and interests of Employer and to
perform the duties and responsibilities that are assigned to Employee. Employer
shall be entitled to all of the benefits arising from or incident to the duties
of Employee pursuant to this Agreement.

3.       COMPENSATION. As compensation for the services to be rendered by
Employee, Employer shall pay Employee in equal semi-monthly installments of
$___________________ (less normal withholding for state and federal income
taxes and employee portions of FICA, SDI, and any other required or
Employee-authorized deductions), together with such additional terms of
compensation, if any, as set forth in this Agreement, Employee's employment
offer letter and/or as determined by Employer from time to time. Employee
shall also be entitled to participate in such employee benefit programs as
may be offered by Employer, subject to the terms and eligibility requirements
established by Employer for such programs. The parties contemplate that
compensation adjustments may be made from time to time at the discretion of
Employer. Such adjustments shall be incorporated into and form a part of this
Agreement.

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4.       TERM AND TERMINATION. Employee's employment with Employer is "at will,"
meaning that either Employee or Employer may terminate the employment
relationship at any time on notice to the other, with or without cause, for any
reason or no reason, and with no liability of Employer to Employee other than
for wages accrued to the date of termination. Employer may also discipline,
demote or alter the terms of employment of Employee at any time, with or without
cause or advance notice.

5.       NON-COMPETITION.

         (a) For the duration of Employee's employment with Employer and for a
period of one (1) year after the date of termination of Employee's employment
with Employer, whether terminated by Employee or Employer, Employee will not, as
an employee, agent, consultant, advisor, independent contractor, general
partner, officer, director, stockholder, investor, lender or guarantor of any
corporation, partnership or other entity, or in any other capacity, directly or
indirectly:

              (i) Engage in any employment, business or activity that
competes or may compete with Employer's business or reasonably anticipated
business or permit Employee's name to be used in connection with, or assist, any
person or organization in competing with or preparing to compete with Employer;
or

              (ii) Solicit, divert, or take away or assist any competitor or
potential competitor of Employer in soliciting, diverting or taking away any
person, firm, corporation or other entity from Employer who is or was a past or
present customer or supplier of Employer;

              (iii) Induce or attempt to induce any person, who at the time
of such inducement is an employee of Employer, to perform work or services for
any other person or entity other than Employer; or

              (iv) Permit other employees of Employer to be used in connection
with a business which is competitive or substantially similar to the business of
Employer.

         (b) Notwithstanding the foregoing, Employee may own, directly or
indirectly, solely as an investment, up to one percent (1%) of any class of
"publicly traded securities" of any person or entity which owns a business that
is competitive or substantially similar to the Employer's business. The term
"publicly traded securities" shall mean securities that are traded on a national
securities exchange or listed on the National Association of Securities Dealers
Automated Quotation System.

         (c) If any restriction set forth in this non-competition section is
found by a court to be unreasonable, then Employee agrees and hereby submits, to
the reduction and limitation of such prohibition to such area or period as shall
be deemed reasonable. Employee acknowledges that the services that Employee will
provide to Employer under this agreement are unique and that irreparable harm
will be suffered by Employer in the event of the breach by Employee of any of
its obligations under this agreement, and that Employer may be entitled, in
addition to its other rights, to enforce obligations set forth in this agreement
by an injunction or decree of specific

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performance. Any claims asserted by Employee against Employer shall not
constitute a defense in any injunction action brought by Employer to obtain
specific enforcement of said obligations.

6.   OBSERVANCE OF RULES AND REGULATIONS. Employee agrees to abide by all
Employer's policies, rules and regulations as adopted or amended from time to
time by Employer in its discretion.

7.   EMPLOYEE NONDISCLOSURE AND INVENTION ASSIGNMENT AGREEMENT. Employee's
employment is subject to the requirement that Employee sign, observe, and agree
to be bound, both during and after Employee's employment, by the provisions of
the Employer's Employee Nondisclosure and Invention Assignment Agreement, a copy
of which is being furnished to Employee at the same time as this Agreement.
Employee's execution of the Employee Nondisclosure and Invention Assignment
Agreement is an express condition precedent to Employee's commencement and
continuation of employment with Employer.

8.   REMEDIES. Employee acknowledges that a breach or threatened breach by
Employee of the provisions of Sections 5 and 7 of this Agreement or Sections 2
or 4 of the Employee Nondisclosure and Invention Assignment Agreement will
result in Employer and its affiliates suffering irreparable harm which cannot be
calculated or fully or adequately compensated by recovery of damages alone.
Accordingly, Employee agrees that Employer shall be entitled to temporary and
permanent injunctive relief, specific performance and other equitable remedies,
in addition to any other relief to which Employer may become entitled.

9.   NOTICES. Any notice or other communication required or permitted to be
given under the Agreement shall be in writing and shall be given by prepaid
first class mail or by hand-delivery. Any such notice or other communication, if
mailed by prepaid first class mail shall be deemed to have been received on the
fourth business day after the postmarked date, or if delivered by hand, shall be
deemed to have been received by Employer at the time it is delivered to the
applicable address noted below or by Employee at the time it is received by
Employee or at the time it is delivered to the applicable address noted below.
Notices and other communications shall be addressed as follows:

         (a)      If to Employer:

                  Simple Technology, Inc.
                  3001 Daimler St.
                  Santa Ana, CA  92705
                  Attn:  Human Resources Dept.

         (b)      If to Employee:

                  c/o  Simple Technology, Inc.
                  3001 Daimler St.
                  Santa Ana, CA  92705

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Either party may change its address for the purposes of this Agreement by giving
written notice of such change to the other party.

10.  INVALIDITY OF PROVISIONS. If any provision of this Agreement should be
declared to be void or unenforceable by a court of competent jurisdiction from
which no further appeal lies or is taken, that provision shall be deemed to be
severed from this Agreement and the remaining provisions shall not be affected
and shall remain valid and enforceable.

11.  ENTIRE AGREEMENT, AMENDMENT, WAIVER. This Agreement, together with the
Employer's Employee Nondisclosure and Invention Assignment Agreement and the
Employer's employment offer letter, if any, to Employee (each of which is
incorporated herein), constitute the entire agreement between the parties with
respect to the subject matter contained in such documents, and supersede all
prior agreements relating to the same subject matter. There are no other
representations, warranties, conditions, agreements or acknowledgments, which
form a part of or affect this Agreement. Except as provided in this Agreement,
no waiver or termination shall be binding unless accepted in writing by both
parties. No waiver of any provision of this Agreement shall constitute a waiver
of any other provision and no waiver of any provision of this Agreement shall
constitute a continuing waiver unless otherwise expressly provided.

12.  GOVERNING LAW AND FORUM SELECTION. This Agreement shall be governed by, and
interpreted and enforced in accordance with, the laws of the State of California
(excluding any conflict of law rule or principle, which might refer such
construction to the laws of another jurisdiction). Employer and Employee
irrevocably submit to jurisdiction of the courts of Orange County, California,
for the purpose of obtaining an order to compel submission to binding
arbitration pursuant to Section 13 below.

13.  BINDING ARBITRATION. Employer and Employee agree to submit to final and
binding arbitration before J-A-M-S/ENDISPUTE in Orange County, California, all
past, present, and future claims or disputes in any way arising out of or
relating to Employee's employment with Employer, including, without limitation
(except as expressly excluded below in this Section), any claims or disputes
concerning the separation of that employment; any other adverse personnel action
by Employer; any claims by Employee against Employer, or by Employer against
Employee, arising out of or related to any federal, state or local law, statute
or regulation prohibiting employment discrimination or harassment; any public
policy, and any other claim for personal, emotional, physical or economic injury
(individually or collectively, "Covered Claims"). The only claims or disputes
excluded from binding arbitration under this Agreement are the following: any
claim by Employee for workers' compensation benefits or for benefits under an
Employer plan that provides its own arbitration procedure; and any claim by
Employer for equitable relief, including but not limited to, a temporary
restraining order, preliminary injunction or permanent injunction against
Employee.

         (a) The party asserting a Covered Claim must give written notice to the
other party within 180 days of the date of the accrual of such claim for statute
of limitations purposes. If such notice is not given within this time period,
the claim shall be deemed waived.

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         (b) Prior to initiating arbitration, an Employee shall attempt in good
faith to resolve a Covered Claim through means of conciliation with Employer. An
Employee asserting a Covered Claim ordinarily must attempt to conciliate the
matter first in accordance with Employer's Conflict Resolution Policy.

         (c) If Employer's conciliation process does not produce a satisfactory
resolution, within 30 days thereafter the aggrieved party may demand arbitration
of a Covered Claim. The arbitration shall be conducted in accordance with the
then-existing Rules and Procedures of J-A-M-S/ENDISPUTE for Arbitration of
Employment Disputes, except that the mediation and optional appeal procedures of
J-A-M-S/ENDISPUTE shall not be required. The Arbitrator shall not have the power
to commit errors of law or legal reasoning, or to grant relief, which would not
be legally available in a California court.

         (d) This Agreement to submit all Covered Claims to binding arbitration
in no way alters Employee's at-will employment with Employer and does not
require Employer to provide Employee with any type of progressive discipline.

14.  ATTORNEY'S FEES AND COSTS. Should any legal action (other than binding
arbitration under Section 13 above, in which each party shall bear its, his or
her own fees and costs) be required to resolve any dispute over the meaning or
enforceability of this Agreement or to enforce the terms of this Agreement, the
prevailing party shall be entitled to recover its, his or her reasonable
attorneys' fees and costs incurred in such action, in addition to any other
relief to which that party may be entitled.

15.  ACKNOWLEDGMENTS AND REPRESENTATIONS. Employee acknowledges, represents and
agrees that:

         (a) Employee has read and understands the terms of this Agreement and
Employee's obligations hereunder, and Employee agrees to abide by the terms of
this Agreement;

         (b) Employer has made no promises or representations concerning future
promotions, compensation, or other terms and conditions of employment other than
as expressly stated in this Agreement; and,

         (c) By accepting employment under this Agreement, Employee has not
relied upon or been induced to accept employment with Employer on the basis of
any such promises or representations.

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        IN WITNESS WHEREOF, the parties have executed this Agreement.

EMPLOYEE

------------------------------------
Signature

SIMPLE TECHNOLOGY, INC.

By:  /s/  Carl Swartz
    -----------------
Name:  Carl Swartz

Title:  Vice President of Strategic Planning

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                 SCHEDULE OF SUBSTANTIALLY IDENTICAL AGREEMENTS

The filed agreement is substantially identical in all material respects to
the Company's agreements with the following employees except for the material
details set forth below:

<TABLE>
<CAPTION>

EMPLOYEE                        POSITION                     SEMI-MONTHLY SALARY          SIGNATURE
--------                        --------                     -------------------          ---------
<S>                             <C>                          <C>                          <C>
Manouch Moshayedi               CEO and Chairman of the      $18,333.33                   /s/ Manouch Moshayedi
                                Board

Mike Moshayedi                  President                    $18,333.33                   /s/ Mike Moshayedi

Mark Moshayedi                  Chief Technology Officer,    $18,333.33                   /s/ Mark Moshayedi
                                Chief Operating Officer
                                and Secretary

Dan Moses                       Chief Financial Officer      $6,250.00                    /s/ Dan Moses

Michael Hajek                   Vice President of OEM        $10,416.67                   /s/ Michael Hajek
                                Division

Carl Swartz                     Vice President of            $8,333.33                    /s/ Carl Swartz
                                Strategic Planning and
                                General Counsel

Shane Mortazavi                 Vice President of            $6,666.67                    /s/ Mark Moshayedi
                                Operations

</TABLE>

                                       7<PAGE>
                                                                   Exhibit 10.11

                                 EQUIPMENT LEASE

THIS AGREEMENT ("Agreement") is made and entered into as of June 1, 1996, by and
between SIMPLE TECHNOLOGY, INC., a California corporation ("STI"), and MOSHAYEDI
DEVELOPMENT CORPORATION, a California corporation ("MDC").

                                    RECITALS

A.   STI is in the business of manufacturing and selling computer memory
products,PCMCIA products, and computer peripheral equipment.

B.   MDC owns various capital assets, including certain manufacturing
equipment used in the manufacture of computers and other products.

C. STI desires to lease certain manufacturing equipment from MDC and MDC desires
to lease such manufacturing equipment to STI, in accordance with the terms and
conditions of this Agreement.

     NOW THEREFORE, in consideration of the mutual covenants and agreements
contained in this Agreement, and for other good and valuable consideration, STI
and MDC hereby agree as follows:

                                    ARTICLE I
                         DESCRIPTION OF LEASED EQUIPMENT

1.   PROPERTY  DESCRIPTION.  The property to be leased is described in the
attached  Schedule A, which is included  herein and made a part hereof.

                                   ARTICLE II
                                  TERM OF LEASE

1.   INITIAL TERM.  The initial term of the lease for the property leased
hereunder is set forth in Schedule A.

                                   ARTICLE III
                                 PAYMENTS BY STI

1.   RENTAL PAYMENTS. The amount of monthly rental payments is set forth in
Schedule A. STI shall make monthly payments at MDC's address as set forth above
or at such other place as designated by MDC or its assignees. All rental
payments shall be due and payable in advance on the first day of each month
during the term of this Agreement. Any rental payments not made by STI within
five (5) days of the due date shall be subject to a late charge of five (5)
percent of the amount due.

2.   SECURITY DEPOSIT. As security for the prompt and full payment of rent
and the faithful and timely performance of all provisions of this Agreement, STI
shall deposit

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with MDC the amount set forth in Schedule A ("Security Deposit"). If any default
shall occur in the performance of any covenants in this Agreement by STI, MDC
shall have the right, but shall not be obligated, to apply the Security Deposit
to the curing of the default. On demand, STI shall restore the Security Deposit
to the full amount set forth in Schedule A. On the expiration or earlier
termination of this Agreement, providing STI has paid all of the required rent
and fully performed all of the other provisions of this Agreement, MDC shall
return to STI any remaining balance of the Security Deposit.

                                   ARTICLE IV
                                    OWNERSHIP

1.   NO SALE OR SECURITY INTEREST INTENDED. This Agreement constitutes a
lease of the property described herein and not a sale or the creation of a
security interest. STI shall not have, or at any time acquire, any right, title,
or interest in the property except the right to possession and use as provided
in this Agreement. MDC shall at all times be the sole owner of the property.

2.   SUBORDINATION. The rights of STI under this Agreement shall be subject
and subordinate to certain security interests in the property held by Lyon
Credit Corporation and its successors.

                                    ARTICLE V
                               OPERATING EXPENSES

1.   STI shall be responsible for all expenses and all other charges in
connection with the operation of the property.

                                   ARTICLE VI
                             MAINTENANCE AND REPAIRS

1.   STI'S RESPONSIBILITY. STI shall assume all obligation and liability
with respect to the possession of the property, and for its use, operation,
condition, and storage during the lease term. STI shall, at STI's own expense,
maintain the property in good mechanical condition and running order, allowing
for reasonable wear and tear. The rent on the property or on any element thereof
shall not be prorated or abated while the property is being serviced or
repaired.

2.   ACCESSIONS. All installations, replacements, and substitutions of parts
or accessories with respect to any of the property shall constitute accessions
and shall become part of the property and shall be owned by MDC.

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                                   ARTICLE VII
                                 USE OF PROPERTY

1.   RIGHTS OF STI. STI shall be entitled to the absolute right to the use,
operation, possession, and control of the property during the term of this
Agreement, providing STI is not in default of any provision of this Agreement.
STI shall employ and have absolute control, supervision, and responsibility over
any operators or users of the property.

2.   DUTIES OF STI. STI shall use the property in a careful and proper
manner and shall not permit any of the property to be operated or used in
violation of any applicable federal, state, or local statute, ordinance, rule,
or regulation relating to the possession, use, or maintenance of the property.
STI agrees to reimburse MDC in full for all damage to the property arising from
any misuse or negligent act by STI, its employees, and its agents. STI shall
indemnify and hold MDC harmless from any and all liabilities, fines,
forfeitures, or penalties for violations of any applicable statute, ordinance,
rule, or regulation.

3.   COMMERCIAL USE LIMITATION. STI represents and warrants that the
property will be used for commercial or business purposes only.

                                  ARTICLE VIII
                      MDC'S RIGHT OF INSPECTION AND REPAIR

1.   INSPECTION AND REPAIR. MDC, at its discretion during STI's regular
business hours and with one (1) day's prior notice to STI, shall have the right
to enter the premises where the property is located or used for the purpose of
inspection. If any property covered by this Agreement is not being properly
maintained in the opinion of MDC, MDC shall have the right, but not the
obligation, to have it repaired or maintained by an appropriate service facility
at the expense of STI.

                                   ARTICLE IX
                         ASSIGNMENT OF MDC'S WARRANTIES

1.   WARRANTY ASSIGNMENT. MDC shall assign to STI all manufacturer, dealer,
or supplier warranties applicable to the property to enable STI to obtain any
warranty service available for the property. Any enforcement by STI of warranty
rights shall be at the expense of STI and shall in no way render MDC responsible
to STI for the performance of any of the warranties.

                                    ARTICLE X
                             TAXES AND OTHER CHARGES

1.   TAXES. STI shall be liable for and pay on or before the due dates, all
sales taxes, use taxes, personal property taxes, business personal property
taxes, and assessments, or other taxes or government charges imposed on the
property or levied against, or based on,

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the amount of rent to be paid under the Agreement or assessed in connection with
the Agreement.

2.   OTHER CHARGES. STI shall be liable for any fees for licenses,
registrations, permits, and other certificates as may be required for the lawful
operation of the property. All certificates of title shall initially be applied
for in the State of California and shall be issued and maintained in the name of
MDC, as owner. Such certificates shall be delivered to MDC and STI shall pay all
expenses in relation thereto.

                                   ARTICLE XI
                                 STI INSPECTION

1.   INSPECTION BY STI. STI shall inspect the property within fifteen (15)
days after receipt thereof. Unless STI within that time gives written notice to
MDC, specifying any defect in or other proper objection to the property, STI
agrees that it shall be conclusively presumed, as between MDC and STI, that STI
has fully inspected the property and acknowledged that the property is in good
condition and repair, and that STI is satisfied with and has accepted the
property in such good condition and repair.

                                   ARTICLE XII
                                    INSURANCE

1.   STI DUTY TO INSURE. STI agrees to maintain in full force and effect, at
its own cost and expense, property damage insurance issued by a company
satisfactory to MDC, insuring the interest of MDC, STI, and their authorized
agents and employees. The policy shall be for primary coverage and shall have a
limit of no less than:

         $1,000,000 per person;
         $1,000,000 per accident;
         $621,949.46 property damage; and
         $1,000,000 excess liability umbrella coverage.

For all property covered by this Agreement, STI shall also provide, at its own
cost and expense, comprehensive, fire, theft, and additional combined insurance
coverage naming MDC as an additional insured. Coverage shall be in the form and
amounts as directed by MDC from time to time.

2.   INSURANCE CERTIFICATE. STI shall cause the insured to furnish to MDC,
not less than ten (10) days prior to the date on which the property is delivered
to STI and not less than ten (10) days prior to the expiration date of any
existing insurance, a certificate evidencing the required insurance. The policy
shall provide that the insurer shall not cancel or materially modify the
insurance except on thirty (30) days' advanced written notice to MDC. If STI
fails to procure, maintain, or renew the insurance, MDC may, but is not
obligated to, obtain insurance for STI without prejudice to any other rights
that MDC may have.

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3.   EXCESS LIABILITY INDEMNITY. STI shall indemnify and hold MDC, its
agents, and employees, harmless from and against all loss, liability, and
expense, including reasonable attorneys' fees, in excess of the provided limits
of liability insurance for bodily injury (including death) or property damage
caused by or arising out of the ownership, maintenance, use, or operation of the
leased property.

                                  ARTICLE XIII
                          INDEMNIFICATION AND LIABILITY

1.   ALL LIABILITY ASSUMED BY STI. STI assumes all risk and liability for
the loss of or damage to the equipment, for the death of or injury to any person
or property of another, and for all other risks and liabilities arising from the
use, operation, condition, possession, or storage of the leased property.
Nothing in this Agreement shall authorize STI or any other person to operate any
of the property so as to impose any liability or other obligation on MDC.

2.   STI DUTY TO INDEMNIFY. STI shall indemnify, defend, and hold harmless
MDC, its agents, and employees from any and all claims, loss, or damage MDC may
sustain or suffer for any of the following reasons:

     i)   the loss of or damage to any of the property for any cause;

     ii)  the injury to or death of any person, including but not limited to
agents, or employees of STI; or,

     iii) damage to any property arising from the use, possession, selection,
delivery, return, condition, or operation of any of the property.

3.   OBLIGATIONS SURVIVE LEASE TERM. The indemnities and assumptions of
risk, liabilities, and obligations by STI arising under this Agreement during
its term shall continue in effect after the termination of this Agreement,
regardless of the reason for termination.

                                   ARTICLE XIV
                ACCIDENT, LOSS OF PROPERTY, OR DAMAGE TO PROPERTY

1.   NOTIFICATION TO MDC. If any property covered by this Agreement is
damaged, lost, stolen, or destroyed, or if any person is injured or dies, or if
any property is damaged as a result of its operation, use, maintenance, or
possession, STI shall promptly notify MDC of the occurrence, and shall file all
necessary accident reports, including those required by law and those required
by insurers of the leased property.

2.   STIPULATED LOSS VALUE. If any property becomes lost, stolen, destroyed,
or damaged beyond repair, STI shall pay MDC in cash the "Stipulated Loss Value"
as set forth in Schedule A, less any net proceeds of insurance for the property
received by MDC. Upon payment, this Agreement shall terminate with respect to
that item of property and STI shall become entitled to the property on an
"as-is, where-is" basis, without warranty, express or implied, for any matter
whatsoever.

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                                   ARTICLE XV
                                   ASSIGNMENT

1.   ASSIGNMENT BY MDC. MDC may assign this Agreement or any rights under it
at any time without STI's consent. In the event of any assignment, MDC's
assignee shall have all the rights, powers, privileges, and remedies of MDC as
set forth in this Agreement.

2.   ASSIGNMENT OR SUBLETTING BY STI. STI shall not assign this Agreement or
any property described in it, or assign any interest in this Agreement or
property, or sublet any of the leased property without the express written
consent of MDC.

                                   ARTICLE XVI
                          ACTIONS CONSTITUTING DEFAULT

1.   STI IN DEFAULT. MDC, at its option, may by written notice to STI
declare STI in default on the occurrence of any of the following:
     i)   failure by STI to make payments or perform any of its obligations
under this Agreement;
     ii)  institution by or against STI of any proceeding in bankruptcy or
insolvency, or the reorganization of STI under any law, or the appointment of a
receiver or trustee for the goods and property of STI, or any assignment by STI
for the benefit of creditors;
     iii) expiration or cancellation of any insurance policy to be paid by STI
as provided for under the terms of this Agreement; or
     iv)  involuntary transfer of STI's interest in this Agreement by operation
of law.

                                  ARTICLE XVII
                  RIGHTS, REMEDIES, AND OBLIGATIONS ON DEFAULT

1.   MDC RIGHTS AND REMEDIES. After default of STI, and on notice from MDC
that STI is in default, MDC shall have the following options:
     i)   terminate the Agreement and STI's rights under the Agreement;
     ii)  declare the balance of all unpaid rent and all other charges of any
kind required of STI under the Agreement to be due and payable immediately; and,
     iii) repossess the property without legal process free of all rights of
STI in and to the property. STI authorizes MDC or MDC's agent to enter on any
premises where the property is located and repossess it and remove it.

2.   STI OBLIGATION FOR MDC COSTS. After default, STI shall reimburse MDC
for all reasonable expenses of repossession and enforcement of MDC's rights and
remedies.

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<PAGE>

3.   EFFECT OF FORBEARANCE. No failure on the part of MDC to exercise any
remedy or right and no delay in the exercise of any remedy or right shall
operate as a waiver. Acceptance by MDC of rent or other payments made by STI
after default shall not be deemed a waiver of MDC's rights and remedies arising
from STI's default.

4.   FORFEITURE OF STI INTEREST ON DEFAULT. Upon default, for any reason,
STI and STI's successor in interest shall have no right, title, or interest in
the leased property, its possession, or its use. MDC shall retain all rents and
other payments of any kind made by STI under this Agreement.

                                  ARTICLE XVIII
                        RETURN OF PROPERTY ON EXPIRATION

1.   STI RETURN OF PROPERTY. Upon the expiration of this Agreement with
respect to any and all of the property, STI shall return the property to MDC,
together with all accessions, free from all damage and in the same condition and
appearance as when received by STI, allowing for ordinary wear and tear. If STI
fails or refuses to return the equipment to MDC, MDC shall have the right to
take possession of the property and for that purpose to enter any premises where
the property is located without being liable in any suit, action, defense, or
other proceedings to STI.

                                   ARTICLE XIX
                                      LIENS

1.   ENCUMBRANCES OR LIENS; NOTICE. STI shall not pledge, encumber, or
create a security interest in, or permit any lien to become effective on any
leased property. If any of these events takes place, STI shall be deemed to be
in default at the option of MDC. STI shall promptly notify MDC of any liens,
charges, or other encumbrances of which STI has knowledge. STI shall promptly
pay or satisfy any obligation from which any lien or encumbrance arises, and
shall otherwise keep the property and all right, title, and interest free and
clear of all liens, charges, and encumbrances. STI shall deliver to MDC
appropriate satisfactions, waivers, or evidence of payment.

                                   ARTICLE XX
                                     NOTICES

1.   SERVICE OF NOTICE. Accept as otherwise provided by law, any and all
notices or other communications required or permitted by this Agreement or by
law to be served on or given to either party by the other party shall be in
writing and shall be deemed duly served and given when personally delivered to
any member of the party to whom they are directed, or in lieu of such personal
service when deposited in the United States mail, first class postage pre-paid,
addressed to STI at 3001 Daimler Street, Santa Ana, California, 92705, or to MDC
at 3001 Daimler Street, Santa Ana, California, 92705. Either party may change
its address for the purpose of this paragraph by giving notice of the change to
the other party in the manner provided in this paragraph.

                                        7

<PAGE>

                                   ARTICLE XXI
                           AMENDMENT AND MODIFICATION

1.   METHOD OF AMENDMENT OR MODIFICATION. Additional property may from time
to time be added as the subject matter of this Agreement as agreed on by the
parties. Any additional property shall be added to Schedule A in an amendment
describing the property, the monthly rental, the term of the leasing period,
security deposit, and stipulated loss value of additional property. This
Agreement shall be amended, modified or altered only in a writing signed by both
parties.

                                  ARTICLE XXII
                                ENTIRE AGREEMENT

1.   INCORPORATION BY REFERENCE. This Agreement and any attached
schedule(s), which are incorporated by reference and made an integral part of
this Agreement, constitute the entire agreement between the parties. No
agreements, representations, or warranties, other than those specifically set
forth in this Agreement or in the annexed schedule(s), shall be binding on any
of the parties unless set forth in writing and signed by both parties.

                                  ARTICLE XXIII
                                  GOVERNING LAW

1.   CHOICE OF LAW. This Agreement shall be governed and construed in all
respects in accordance with the laws of the State of California, USA. Any legal
action or notice shall be entered into in a court of suitable jurisdiction in
the County of Orange, State of California, and STI and MDC each hereby submits
to the jurisdiction of said courts.

                                  ARTICLE XXIV
                               SEVERABILITY CLAUSE

1.   AGREEMENT SURVIVES PARTIAL INVALIDITY. If any provision of this
Agreement is held to be invalid by a court of competent jurisdiction, the
remaining provisions shall nevertheless remain in full force and effect.

                                   ARTICLE XXV
                                  RELATIONSHIP

1.   INDEPENDENT CONTRACTOR RELATIONSHIP. It is understood and agreed that
STI and MDC are independent contractors and each is engaged in the operation of
its own business. Nothing in this Agreement shall be construed to constitute the
parties as partners, joint venturers, or co-owners.

                                        8

<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date last written below.

Simple Technology, Inc.:                  MDC:

By:    _______________________________    By:    _______________________________

Name:  _______________________________    Name:  _______________________________

Title: _______________________________    Title: _______________________________

Date:  _______________________________    Date:  _______________________________

                                        9

<PAGE>

                                   SCHEDULE A
                             DESCRIPTION OF PROPERTY

      A. The property to which this Schedule and Agreement applies is as
follows:

         QTY.              DESCRIPTION                             SERIAL #

         2                 Quad QSP-2 High Speed Surface           2846, 2857
                           Mount Assembly Systems

         2                 Quad VMP-20B Screen Printers            90116, 90118

                                      RENT

      B. As rent for this property, STI shall pay MDC the total sum of
$781,539.20. Except as otherwise provided in this Agreement or in this Schedule,
rent shall be payable in 60 monthly installments of $13,025.65 each, commencing
on the first day of June, 1996, and continuing on the first day of each month
thereafter until the total sum has been paid in full.

                                    LOCATION

      C. The above described property shall be located at 3001 or 3009 Daimler
St., Santa Ana, CA 92705, and shall not be removed from that location without
the prior written consent of MDC.

                                 RENEWAL OPTION

      D. STI may renew this Agreement of which this Schedule is a part, on a
year-to-year basis, on the expiration of the original term at a total rental of
$13,025.65 per month, and otherwise on the same terms and conditions of this
Agreement. The option may be exercised by STI's written notice to such a fact to
MDC not less than thirty (30) days before the expiration of the term of the
Agreement.

                                       10

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