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                                                                    EXHIBIT 10.8

                                    EXHIBIT B
                      STOCK TRANSFER RESTRICTION AGREEMENT

        This Stock Transfer Restriction Agreement (the "Agreement"), effective
as of January 5, 2001 is by and between mHL Development Company, an Oregon
corporation (the "Company"), and Imperial Bank ("Shareholder)

                                    RECITALS

        A.      Shareholder owns, intends to purchase or has the right to
purchase shares of the Company's Common Stock.

        B.      The parties wish to enter into an agreement relating to the sale
or other disposition of the shares of Common Stock owned or held by Shareholder.

                                    AGREEMENT

        1.      Limitations on Transfer.

                1.1     Shares Subject to Restrictions Under This Agreement. For
the purposes of this Agreement, the term "Shares" shall mean all of the shares
of the Company's Common Stock owned or held by the Shareholder, including any
additional shares that may be acquired subsequent to the date of this Agreement
and all securities received in replacement of the Common Stock or as stock
dividends or splits and all securities received in replacement of the Common
Stock in a recapitalization, merger reorganization and the like.

                1.2     Restrictions. In addition to any other limitation on
transfer created by applicable securities laws or by a separate agreement
between the Company and Shareholder, including, if applicable, a Restricted
Stock Purchase Agreement, Shareholder shall not sell, or otherwise transfer,
including transfers by gift and by operation of law, any interest in any of the
Shares except as provided in this Agreement. Any transfer of the Shares in
violation of this Agreement shall be void.

        2.      Company Repurchase Rights.

                2.1     Triggering Events. On the occurrence of any of the
following events (each a "Triggering Event"):

                        A case or proceeding with respect to the Shareholder is
                commenced under any applicable bankruptcy, insolvency,
                reorganization, receivership or readjustment of debt law or
                other similar law; an order for the appointment of a receiver,
                liquidator, sequestrator, trustee, custodian, or other officer

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                having similar powers over Shareholder or over a substantial
                part of Shareholder's property is entered, or an interim
                receiver, trustee or other custodian of Shareholder or of a
                substantial part of Shareholder's property is appointed or a
                warrant of attachment, execution or similar process against any
                substantial part of Shareholder's property is issued;

the Company shall have the option to repurchase any and all Shares owned or held
or to be acquired by exercise of an option by Shareholder (the "Optional
Redemption") pursuant to the terms of Section 2.2; provided, however, that any
unvested shares subject to an option at the time of Triggering Event shall be
canceled, and Shareholder shall have no right to exercise any option with
respect to those shares.

                2.2     Terms and Conditions of an Optional Redemption. An
Optional Redemption shall be subject to the following terms and conditions:

                        (a)     Upon the exercise by the Company of an Optional

        Redemption, the Shareholder shall be obligated to sell all of the
        Shares. The Company shall exercise an Optional Redemption by written
        notice to the Shareholder at any time after the Optional Redemption is
        exercisable thereby (a "Notice of Exercise").

                        (b)     In the case of any exercise of the Optional

        Redemption, the purchase price of the Shares shall be the amount that
        the Company and the Shareholder agree upon or, if they are unable to
        agree within 15 days following the Notice of Exercise, the amount
        determined in accordance with the appraisal procedures set forth in
        Section 2.2(c).

                        (c)     The following procedure shall apply in

        connection with any appraisal in connection with an exercise of the
        Optional Redemption:

                                (i)     The Shareholder and the Company shall
                        attempt to agree upon a single appraiser prior to the
                        expiration of the 30-day period following the Notice of
                        Exercise. If they so agree, such appraiser shall, as
                        promptly as possible, determine the amount that reflects
                        the current value of the Shares by first determining the
                        value of the Company in terms of assets and liabilities,
                        present earnings, future prospects and all other
                        relevant factors, and then determining the proportion of
                        such value represented by the Shares considering the
                        existence of senior securities, if any, and the number
                        of the Shares in relation to all outstanding shares and
                        options, warrants, purchase rights and/or rights
                        convertible to shares of the Company's capital stock,
                        but without applying any minority interest discount or
                        illiquidity or similar discount (the "Fair Market Value
                        of the Shares"). The appraiser's written determination
                        shall be

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                        final, conclusive and binding upon all parties to the
                        purchase and sale. The Company and the Shareholder shall
                        share equally the costs and fees of the single
                        appraiser.

                                (ii)    If the Shareholder and the Company are
                        unable to agree upon a single appraiser within the
                        30-day period after the Notice of Exercise, the
                        Shareholder shall appoint one appraiser and the Company
                        shall appoint one appraiser (each party giving notice of
                        the appointment to the other) within 30 days after the
                        expiration of such period, and the two appraisers so
                        appointed shall choose a third appraiser within 30 days
                        after appointment of the second. If either party fails
                        to appoint an appraiser, or if the two appraisers fail
                        to choose a third, the appraiser or appraisers appointed
                        in accordance with the foregoing procedures shall serve
                        as the sole appraiser or appraisers. Any written
                        determination of the Fair Market Value of the Shares
                        signed by at least two appraisers shall be final,
                        conclusive and binding upon all parties to the purchase
                        and sale. If no two appraisers so agree within 60 days
                        following the appointment of the last appraiser, the
                        median of the Fair Market Value of the Shares as
                        determined by each of the three appraisers, or the
                        average of the Fair Market Value of the Shares if there
                        are only two appraisers, shall be final, conclusive and
                        binding upon all parties to the purchase and sale
                        subject to the following modifications:

                                        (A)     if there are three appraisers
                                and each arrives at a different determination of
                                the Fair Market Value of the Shares and any such
                                amount is more than 5% different than the
                                average of all three appraisals, the appraisal
                                that is the farthest away from the average
                                (either high or low) shall be discarded and the
                                average of the remaining two appraisals shall be
                                the Fair Market Value of the Shares.

                                        (B)     if there are only two appraisers
                                and each arrives at a different determination of
                                the Fair Market Value of the Shares and the
                                difference between such amount exceeds 10% of
                                the lower amount, a third appraiser shall be
                                appointed by the two appraisers or, if they fail
                                to appoint a third appraiser within 10 days
                                after the later of the two determinations of the
                                Fair Market Value of the Shares, by the
                                presiding judge in the county seat in which the
                                Company has its principal place of business upon
                                petition thereto by either appraiser or by
                                either of the Shareholder or the Company. The
                                third appraiser shall conduct an appraisal in
                                accordance with this Section 2.2(c)(ii) as
                                promptly as is practicable and the results of
                                such appraisal and all other

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                                appraisals conducted pursuant to this Section
                                2.2(c)(ii) shall be subject to all applicable
                                provisions of this Section 2.2(c)(ii), including
                                the foregoing clause (A).

        Except as hereinafter provided in the case of the use of a single
appraiser, each party to the appraisal shall pay the compensation and expenses
of the appraiser appointed by such party. The compensation and expenses of the
third appraiser shall be shared equally by the Shareholder and the Company. If
only one appraiser is used pursuant to this Section 2.2(c)(ii), the compensation
and expenses of such appraiser shall be paid by the party that appointed such
appraiser.

                                (iii)   Each party appointing an appraiser
                        hereunder shall use reasonable diligence to select as an
                        appraiser an individual or firm that by training and
                        experience is knowledgeable concerning the methods of
                        ascertaining the fair market value of an interest in a
                        privately-held business engaged in the primary business
                        of the Company. Any appraiser appointed pursuant to
                        Section 2.2(c)(ii) shall be a member of either or both
                        of the American Society of Appraisers and the Institute
                        of Business Appraisers.

                        (d)     On a date specified by the Company that is not
        later than 45 days after the Notice of Exercise in the case of a
        purchase price determined under Section 2.2(b) other than in accordance
        with the foregoing appraisal procedures described in Section 2.2(c) or,
        in the case of a determination of the purchase price of the Shares in
        accordance with such appraisal procedures, not later than 30 days after
        the determination of the Fair Market Value of the Shares (the relevant
        date in any such case being the "Section 2.2 Closing Date"), the Company
        shall pay to the Shareholder ten percent (10%) of the Fair Market Value
        of the Shares, and the balance payable in 60 equal monthly installments,
        including interest on the unpaid balance at the rate of eight percent
        (8%) per annum from the Section 2.2 Closing Date; installments to
        commence one month after the Section 2.2 Closing Date with no
        restrictions on prepayment.

                        (e)     On the Section 2.2 Closing Date, the Shareholder
        shall deliver to the Company certificates evidencing the Shares and a
        certificate dated as of the Section 2.2 Closing Date, containing the
        representation and warranty of the Shareholder as to its unrestricted
        legal right, power and authority to assign, transfer and deliver its
        Shares and that at the closing on the Section 2.2 Closing Date the
        Company will receive good and marketable title to such Shares, free and
        clear of all liens, claims, equities, encumbrances and restrictions of
        every kind other than the restrictions set forth in this Agreement.

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In the event the Company does not elect to exercise the Optional Redemption, the
Shares shall remain subject to the terms of this Agreement. The Company's
repurchase rights are in addition to the Company's right of first refusal set
forth in Section 3 of this Agreement.

                2.3     Other Agreements. The repurchase rights contained in
this Agreement are in addition to repurchase rights that may be included in a
separate agreement between Shareholder and the Company, including, if
applicable, a Restricted Stock Purchase Agreement. The repurchase price to be
paid by the Company for any Shares after Triggering Event shall be governed by
the terms of this Agreement only to the extent that such Shares have been
released from the repurchase terms contained in a separate agreement between the
Company and Shareholder.

        3.      Company Right of First Refusal. If Shareholder desires (or is
required) to sell or transfer any of the Shares in any manner, Shareholder shall
first obtain a firm, unconditional written offer signed by a bona fide
prospective purchaser (the "Bona Fide Offer"), stating the number of Shares to
be purchased, the total purchase price and the terms of payment of the purchase
price. Shareholder shall mail a copy of the Bona Fide Offer to the Company. The
Company shall have a right of first refusal to purchase any portion of the
Shares covered by the Bona Fide Offer at the same price, and upon the same terms
(or terms as similar as reasonably possible) set forth in the Bona Fide Offer.
The right of first refusal shall be provided to the Company for a period of 60
days following receipt by the Company of the Bona Fide Offer. If the Shares are
not purchased by the Company, the selling Shareholder shall have 60 days
following lapse of the period of the right of first refusal provided to the
Company to dispose of the Shares to the transferee identified in the Bona Fide
Offer on terms no more favorable to the transferee than those offered to the
Company. After such 60 day period lapses, the Shares shall once again be subject
to the rights of first refusal herein provided. Notwithstanding the foregoing,
the Shareholder shall have the right to transfer the Shares, in compliance with
applicable federal and state securities laws, to an Affiliate, including,
without limitation, Imperial Bancorp, at any time without notice to the Company
and without compliance with this Section 3. As used herein, "Affiliate" means
the parent company of Holder, a majority-owned subsidiary of Holder, or a
majority-owned subsidiary of Holder's parent company; provided, however, that
such entity is a "qualified institutional buyer" as defined in Rule 144A as
promulgated under the Securities Act of 1933, as amended.

        4.      Assignment by the Company. The right of the Company to purchase
any part of the Shares may be assigned in whole or in part to any person or
persons designated by the Board of Directors of the Company.

        5.      Obligations Binding Upon Transferees. All transferees of Shares
or any interest therein will receive and hold such Shares or interests subject
to the provisions of this Agreement. Any sale or transfer of the Shares shall be
void unless the provisions of this Agreement are met.

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        6.      Termination. This Agreement shall terminate on (i) the effective
date of a registration statement filed by the Company under the Securities Act
of 1933, as amended (the "Act"), with respect to an underwritten public offering
of Common Stock of the Company or (ii) the closing date of a sale of assets or
merger of the Company pursuant to which shareholders of the Company receive
securities of a buyer whose shares are publicly traded.

        7.      Lock-up Agreement. Shareholder agrees, in connection with an
initial public offering of equity securities by the Company, upon request of the
Company or the underwriters managing such offering, not to sell, make any short
sale of, loan, grant any option for the purchase of, or otherwise dispose of any
Shares (other than those included in the registration of the offering, if any)
without the prior written consent of the Company or such underwriters, as the
case may be, for the period of time after the offering requested by the
underwriters, which period shall not exceed one year from the effective date of
the registration of the offering. Notwithstanding the foregoing, Shareholder
shall only be subject to the terms of this Section 7 to the extent that all
officers and directors of the Company and all holders of at least one percent
(1%) of the Company's stock are subject to substantially similar restrictions.

        8.      Transfers in Violation. The Company shall not be required to (a)
transfer on its books any Shares that have been sold or transferred in violation
of any of the provisions set forth in this Agreement, or (b) treat as owner of
such Shares, or accord the right to vote as such owner, or pay dividends to any
transferee to whom such Shares shall have been so transferred.

        9.      Enforcement. The Company and Shareholder acknowledge that the
other party will suffer irreparable harm if either party fails to comply with
this Agreement, and that monetary damages will be inadequate to compensate the
parties for such failure. Accordingly, the parties agree that this Agreement may
be enforced by specific performance or other injunctive relief, in addition to
any other remedies available at law or in equity.

        10.     Governing Law. This Agreement shall be governed by, and shall be
construed and enforced in accordance with, the laws of the State of Oregon
exclusive of choice of law or conflicts of law rules, provisions, and
principles.

        11.     Miscellaneous.

                11.1    Shareholder Rights. Subject to the provisions and
limitations hereof, Shareholder may, during the term of this Agreement, exercise
all rights and privileges of a shareholder of the Company with respect to the
Shares.

                11.2    Notices. Any notice, demand or request required or
permitted to be given under this Agreement shall be in writing and shall be
deemed given when delivered personally, or three days after being deposited in
the United States mail as certified or registered mail, return receipt
requested, with postage prepaid, or the day following facsimile

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transmission, with confirmed transmission, in either case addressed, if to the
Company, to mHL Development Company, 16125 SW 72nd Avenue, Portland, OR 97224;
and if to Shareholder at Shareholder's address shown on the stock records of the
Company, or at such other address as any party may designate by 10 days' advance
written notice to the other party.

                11.3    Amendment. This Agreement may be amended only by the
written consent of the Company and Shareholder.

                11.4    Assignment. The rights and benefits of this Agreement
shall inure to the benefit of and be enforceable by the Company and its
respective successors and assigns. The rights and obligations of Shareholder
under this Agreement may not be assigned without the prior written consent of
the Company.

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

IMPERIAL BANK                               MHL DEVELOPMENT COMPANY

By:/s/ MIKE PARROTT                         By:/s/ RICHARD G. SASS
   ------------------------                    ---------------------------

Name:  Mike Parrott                         Name: Richard G. Sass

Title: Venture Banking Officer              Title: Chief Executive Officer

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                                                                    EXHIBIT 10.9

                             UNCONDITIONAL GUARANTY
                                 RICHARD G. SASS

        For and in consideration of the loan by IMPERIAL BANK ("Bank") to MHL
DEVELOPMENT COMPANY ("Borrower"), pursuant to a Loan and Security Agreement of
even date as amended from time to time (the "Loan Agreement"), and any and all
other Obligations owing by Borrower to Bank, the undersigned guarantor
("Guarantor") hereby unconditionally and irrevocably guarantees the prompt and
complete payment of all amounts that Borrower owes to Bank and performance by
Borrower of the Loan Agreement (collectively, the "Agreements") in strict
accordance with their terms. All terms used without definition in this Guaranty
shall have the meaning assigned to them in the Agreement.

        1. If Borrower does not perform its obligations in strict accordance
with the Agreements, Guarantor shall immediately pay all amounts due thereunder
(including, without limitation, all principal, interest, and fees) and otherwise
to proceed to complete the same and satisfy all of Borrower's obligations under
the Agreements.

        2. If there is more than one guarantor, the obligations hereunder are
joint and several, and whether or not there is more than one Guarantor, the
obligations hereunder are independent of the obligations of Borrower, and a
separate action or actions may be brought and prosecuted against Guarantor
whether action is brought against Borrower or whether Borrower be joined in any
such action or actions. Guarantor waives the benefit of any statute of
limitations affecting its liability hereunder or the enforcement thereof, to the
extent permitted by law. Guarantor's liability under this Guaranty is not
conditioned or contingent upon the genuineness, validity, regularity or
enforceability of the Agreements.

        3. Guarantor authorizes Bank, without notice or demand and without
affecting its liability hereunder, from time to time to (a) renew, extend, or
otherwise change the terms of the Agreements or any part thereof; (b) take and
hold security for the payment of this Guaranty or the Agreements, and exchange,
enforce, waive and release any such security; and (c) apply such security and
direct the order or manner of sale thereof as Bank in its sole discretion may
determine.

        4. Guarantor waives any right to require Bank to (a) proceed against
Borrower or any other person; (b) proceed against or exhaust any security held
from Borrower; or (c) pursue any other remedy in Bank's power whatsoever. Bank
may, at its election, exercise or decline or fail to exercise any right or
remedy it may have against Borrower or any security held by Bank, including
without limitation the right to foreclose upon any such security by judicial or
nonjudicial sale, without affecting or impairing in any way the liability of
Guarantor hereunder. Guarantor waives any defense arising by reason of any
disability or other defense of Borrower or by reason of the cessation from any
cause whatsoever of the liability of Borrower. Guarantor waives any setoff,
defense or counterclaim that Borrower may have against Bank. Guarantor waives
any defense arising out of the absence, impairment or loss of any right of
reimbursement or subrogation or any other rights against Borrower. Until all of
the Obligations under the Agreements have been satisfied in full, Guarantor
shall have no right

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of subrogation or reimbursement, contribution or other rights against Borrower,
and Guarantor waives any right to enforce any remedy that Bank now has or may
hereafter have against Borrower. Guarantor waives all rights to participate in
any security now or hereafter held by Bank. Guarantor waives all presentments,
demands for performance, notices of nonperformance, protests, notices of
protest, notices of dishonor, and notices of acceptance of this Guaranty and of
the existence, creation, or incurring of new or additional indebtedness.
Guarantor assumes the responsibility for being and keeping itself informed of
the financial condition of Borrower and of all other circumstances bearing upon
the risk of nonpayment of any indebtedness or nonperformance of any obligation
of Borrower, warrants to Bank that it will keep so informed, and agrees that
absent a request for particular information by Guarantor, Bank shall have no
duty to advise Guarantor of information known to Bank regarding such condition
or any such circumstances. Guarantor waives the benefits of California Civil
Code sections 2809, 2810, 2819, 2845, 2847, 2848, 2849, 2850, 2899 and 3433.

        5. Guarantor acknowledges that, to the extent Guarantor has or may have
certain rights of subrogation or reimbursement against Borrower, those rights
may be impaired or destroyed if Bank elects to proceed against any real property
security of Borrower by non-judicial foreclosure. That impairment or destruction
could, under certain judicial cases and based on equitable principles of
estoppel, give rise to a defense by Guarantor against its obligations under this
Guaranty. Guarantor waives that defense and any others arising from Bank's
election to pursue non-judicial foreclosure. Without limiting the generality of
the foregoing, Guarantor waives any and all benefits and defenses under
California Code of Civil Procedure Sections 580a, 580b, 580d and 726, to the
extent they are applicable.

        6. If Borrower becomes insolvent or is adjudicated bankrupt or files a
petition for reorganization, arrangement, composition or similar relief under
any present or future provision of the United States Bankruptcy Code, or if such
a petition is filed against Borrower, and in any such proceeding some or all of
any indebtedness or obligations under the Loan Agreement are terminated or
rejected or any obligation of Borrower is modified or abrogated, or if
Borrower's obligations are otherwise avoided for any reason, Guarantor agrees
that Guarantor's liability hereunder shall not thereby be affected or modified
and such liability shall continue in full force and effect as if no such action
or proceeding had occurred. This Guaranty shall continue to be effective or be
reinstated, as the case may be, if any payment must be returned by Bank upon the
insolvency, bankruptcy or reorganization of Borrower, Guarantor, any other
guarantor, or otherwise, as though such payment had not been made.

        7. This Guaranty shall automatically terminate upon the occurrence of
all of the following: (i) Borrower receives cash proceeds, following the date of
the Loan Agreement, in an amount of at least $3,000,000 from the sale and
issuance of its equity securities to investors satisfactory to Bank in its sole
discretion and (ii) Borrower is in compliance with the financial covenants set
forth in Sections 6.8 through 6.11 of the Loan Agreement.

        8. Guarantor agrees, as so requested by Bank, to complete and sign a
personal financial statement on the Bank's form. Guarantor agrees to pay a
reasonable attorneys' fee

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and all other costs and expenses which may be incurred by Bank in the
enforcement of this Guaranty. No terms or provisions of this Guaranty may be
changed, waived, revoked or amended without Bank's prior written consent. Should
any provision of this Guaranty be determined by a court of competent
jurisdiction to be unenforceable, all of the other provisions shall remain
effective. This Guaranty embodies the entire agreement among the parties hereto
with respect to the matters set forth herein, and supersedes all prior
agreements among the parties with respect to the matters set forth herein. No
course of prior dealing among the parties, no usage of trade, and no parol or
extrinsic evidence of any nature shall be used to supplement, modify or vary any
of the terms hereof. There are no conditions to the full effectiveness of this
Guaranty. Bank may assign this Guaranty without in any way affecting Guarantor's
liability under it. This Guaranty shall inure to the benefit of Bank and its
successors and assigns. This Guaranty is in addition to the guaranties of any
other guarantors and any and all other guaranties of Borrower's indebtedness or
liabilities to Bank.

        9. This Guaranty shall be governed by the laws of the State of
California, without regard to conflicts of laws principles. GUARANTOR WAIVES ANY
RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT
OF THIS GUARANTY OR ANY TRANSACTION CONTEMPLATED THEREIN, INCLUDING CLAIMS BASED
ON CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER COMMON LAW OR STATUTORY BASES.
Guarantor submits to the exclusive jurisdiction of the state and federal courts
located in the County of Santa Clara, State of California.

        10. (a) Other than (i) nonjudicial foreclosure and all matters in
connection therewith regarding security interests in real or personal property;
or (ii) the appointment of a receiver, or the exercise of other provisional
remedies (any and all of which may be initiated pursuant to applicable law),
each controversy, dispute or claim between the parties arising out of or
relating to this Agreement, which controversy, dispute or claim is not settled
in writing within thirty (30) days after the "Claim Date" (defined as the date
on which a party subject to this Agreement gives written notice to all other
parties that a controversy, dispute or claim exists), will be settled by a
reference proceeding in California in accordance with the provisions of Section
638 et seq. of the California Code of Civil Procedure, or their successor
section ("CCP"), which shall constitute the exclusive remedy for the settlement
of any controversy, dispute or claim concerning this Agreement, including
whether such controversy, dispute or claim is subject to the reference
proceeding and except as set forth above, the parties waive their rights to
initiate any legal proceedings against each other in any court or jurisdiction
other than the Superior Court in the County where the Real Property, if any, is
located or Santa Clara County if none (the "Court"). The referee shall be a
retired Judge of the Court selected by mutual agreement of the parties, and if
they cannot so agree within forty-five (45) days after the Claim Date, the
referee shall be promptly selected by the Presiding Judge of the Court (or his
representative). The referee shall be appointed to sit as a temporary judge,
with all of the powers for a temporary judge, as authorized by law, and upon
selection should take and subscribe to the oath of office as provided for in
Rule 244 of the California Rules of the Court (or any subsequently enacted
Rule). Bach party shall have one peremptory challenge pursuant to CCP Section
170.6. The referee shall (a) be requested to set the

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matter for hearing within sixty (60) days after the date of selection of the
referee and (b) try any and all issues of law or fact and report a statement of
decision upon them, if possible, within ninety (90) days of the Claim Date. Any
decision rendered by the referee will be final, binding and conclusive and
judgment shall be entered pursuant to CCP Section 644 in any court in the State
of California having jurisdiction. Any party may apply for a reference
proceeding at any time after thirty (30) days following notice to any other
party of the nature of the controversy, dispute or claim, by filing a petition
for a hearing and/or trial. All discovery permitted by this Agreement shall be
completed no later than fifteen (15) days before the first hearing date
established by the referee. The referee may extend such period in the event of a
party's refusal to provide requested discovery or unavailability of a witness
due to absence or illness. No party shall be entitled to "priority" in
conducting discovery. Depositions may be taken by either party upon seven (7)
days written notice, and request for production or inspection of documents which
cannot be resolved by the parties shall be submitted to the referee as provided
herein. The Superior Court is empowered to issue temporary and/or provisional
remedies, as appropriate.

        (b) Except as expressly set forth in this Agreement, the referee shall
determine the manner in which the reference proceeding is conducted including
the time and place of all hearings, the order of presentation of evidence, and
all other questions that arise with respect to the course of the reference
proceeding. All proceedings and hearings conducted before the referee, except
for trial, shall be conducted without a court reporter except that when any
party so requests, a court reporter will be used at any hearing conducted before
the referee. The party making such a request shall have the obligation to
arrange for and pay for the court reporter. The costs of the court reporter at
the trial shall be borne equally by the parties.

        (c) The referee shall be required to determine all issues in accordance
with existing case law and the statutory laws of the State of California. The
rules of evidence applicable to proceedings at law in the State of California
will be applicable to the reference proceeding. The referee shall be empowered
to enter equitable as well as legal relief, to provide all temporary and/or
provisional remedies and to enter equitable orders that will be binding upon the
parties. The referee shall issue a single judgment at the close of the reference
proceeding which shall dispose of all of the claims of the parties that are the
subject of the reference. The parties hereto expressly reserve the right to
contest or appeal from the final judgment or any appealable order or appealable
judgment entered by the referee. The parties hereto expressly reserve the right
to findings of fact, conclusions of laws, a written statement of decision, and
the right to move for a new trial or a different judgment, which new trial, if
granted, is also to be a reference proceeding under this Section 10.

        (d) In the event that the enabling legislation which provides for
appointment of a referee is repealed (and no successor statute is enacted), any
dispute between the parties that would otherwise be determined by the reference
procedure herein described will be resolved and determined by arbitration. The
arbitration will be conducted by a retired judge of the Court, in accordance
with the California Arbitration Act, Section 1280 through Section 1294.2 of the
CCP as amended from time to time. The limitations with respect to discovery as
set forth hereinabove shall apply to any such arbitration proceeding.

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        IN WITNESS WHEREOF, the undersigned Guarantor has executed this Guaranty
as of January 5, 2001.

                                       /S/ RICHARD G. SASS
                                       -----------------------------------------
                                       RICHARD G. SASS

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