NORTHWEST PIPE CO
EX-10.26
<DOCUMENT>
<TYPE>EX-10.26
<SEQUENCE>4
<FILENAME>j1267_ex10d26.htm
<DESCRIPTION>EX-10.26
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>
</head>

<body link=blue vlink=purple>

<div>

<p align=right><font size=2>Exhibit
10.26</font></p>

<p align=center><font size=2>MASTER
LEASE AGREEMENT</font></p>

<p align=center><font size=2>Dated
as of</font></p>

<p align=center><font size=2>May
30, 2001</font></p>

<p align=center><font size=2>Between</font></p>

<p align=center><font size=2>GENERAL
ELECTRIC CAPITAL CORPORATION</font></p>

<p align=center><font size=2>Lessor</font></p>

<p align=center><font size=2>and</font></p>

<p align=center><font size=2>NORTHWEST
PIPE COMPANY</font></p>

<p align=center><font size=2>Lessee</font></p>

<page>


<p align=center><font size=2>MASTER LEASE AGREEMENT</font></p>

<p align=center><font size=2>TABLE OF CONTENTS</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="5%" valign=bottom><font size=2><a   href="#LeaseFinancing" title="Click to goto LEASE FINANCING">1.</a></font></td>
  <td width="94%" colspan=2 valign=bottom><font size=2><a   href="#LeaseFinancing" title="Click to goto LEASE FINANCING">LEASING</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Term"   title="Click to goto TERM">2.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Term"   title="Click to goto TERM">TERM, RENT AND PAYMENT</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Taxes"   title="Click to goto TAXES">3</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Taxes"   title="Click to goto TAXES">TAXES</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Delivery"   title="Click to goto DELIVERY">4.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Delivery"   title="Click to goto DELIVERY">DELIVERY, USE AND OPERATION</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#Maintenance" title="Click to goto MAINTENANCE">5.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#Maintenance" title="Click to goto MAINTENANCE">MAINTENANCE</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Insurance"   title="Click to goto INSURANCE">6.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Insurance"   title="Click to goto INSURANCE">INSURANCE</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#LossOrDamage" title="Click to goto LOSS OR DAMAGE">7.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#LossOrDamage" title="Click to goto LOSS OR DAMAGE">LOSS OR DAMAGE</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Reports"   title="Click to goto REPORTS">8.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Reports"   title="Click to goto REPORTS">REPORTS</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#EndOfLeaseOptions" title="Click to goto END OF LEASE OPTIONS">9</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#EndOfLeaseOptions" title="Click to goto END OF LEASE OPTIONS">END OF
  LEASE OPTIONS</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2><a href="#Renewal"   title="Click to goto Renewal">(a)</a></font></td>
  <td width="89%" valign=top><u><font size=2><a href="#Renewal"   title="Click to goto Renewal">Renewal</a></font></u></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2><a href="#Purchase"   title="Click to goto Purchase">(b)</a></font></td>
  <td width="89%" valign=top><u><font size=2><a href="#Purchase"   title="Click to goto Purchase">Purchase</a></font></u></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2><a href="#Return"   title="Click to goto Return">(c)</a></font></td>
  <td width="89%" valign=top><u><font size=2><a href="#Return"   title="Click to goto Return">Return</a></font></u></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2><a href="#Extension"   title="Click to goto Extension">(d)</a></font></td>
  <td width="89%" valign=top><u><font size=2><a href="#Extension"   title="Click to goto Extension">Extension</a></font></u></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2><a   href="#NoticeOfElection" title="Click to goto Notice of Election">(e)</a></font></td>
  <td width="89%" valign=top><u><font size=2><a   href="#NoticeOfElection" title="Click to goto Notice of Election">Notice of
  Election</a></font></u></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#DefaultRemedies" title="Click to goto DEFAULT; REMEDIES">10.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#DefaultRemedies" title="Click to goto DEFAULT; REMEDIES">DEEFAULT;
  REMEDIES</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a href="#Assignment"   title="Click to goto ASSIGNMENT">11.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a href="#Assignment"   title="Click to goto ASSIGNMENT">ASSIGNMENT</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#Indemnification" title="Click to goto INDEMNIFICATION">12.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#Indemnification" title="Click to goto INDEMNIFICATION">INDEMNIFICATION</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a
  href="#OwnershipForTaxPurposesGrantOfSecurityIn"   title="Click to goto OWNERSHIP FOR TAX PURPOSES; GRANT OF SECURITY INTEREST; USURY SAVINGS">13.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#OwnershipForTaxPurposesGrantOfSecurityIn"   title="Click to goto OWNERSHIP FOR TAX PURPOSES; GRANT OF SECURITY INTEREST; USURY SAVINGS">OWNDERSHIP
  FOR TAX PURPOSES; GRANT OF SECURITY INTEREST; USURY SAVING</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a
  href="#RepresentationsAndWarrantiesOfLessee"   title="Click to goto REPRESENTATIONS AND WARRANTIES OF LESSEE">14.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#RepresentationsAndWarrantiesOfLessee"   title="Click to goto REPRESENTATIONS AND WARRANTIES OF LESSEE">REPRESENTATIONS
  AND WARRANTIES OF LESSEE</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a
  href="#ChoiceOfLawJurisdiction"   title="Click to goto CHOICE OF LAW; JURISDICTION">15.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a
  href="#ChoiceOfLawJurisdiction"   title="Click to goto CHOICE OF LAW; JURISDICTION">CHOICE OF LAW; JURISDICTION</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#Miscellaneous" title="Click to goto MISCELLANEOUS">16.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#Miscellaneous" title="Click to goto MISCELLANEOUS">MISCELLANEOUS</a></font></td>
 </tr>
 <tr>
  <td width="5%" valign=top><font size=2><a   href="#ChattelPaper" title="Click to goto CHATTEL PAPER">17.</a></font></td>
  <td width="94%" colspan=2 valign=top><font size=2><a   href="#ChattelPaper" title="Click to goto CHATTEL PAPER">CHATTEL PAPER</a></font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="100%" valign=top><font size=2><a   href="#EquipmentSchedule" title="Click to goto EQUIPMENT SCHEDULE">EXHIBIT
  NO. 1 -&nbsp; EQUIPMENT SCHEDULE</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexA"   title="Click to goto ANNEX A">ANNEX A - DESCRIPTION OF EQUIPMENT</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexB"   title="Click to goto ANNEX B">ANNEX B - BILL OF SALE</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexC"   title="Click to goto ANNEX C">ANNEX C - CERTIFICATE OF ACCEPTANCE</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexD"   title="Click to goto ANNEX D">ANNEX D - STIPULATED LOSS AND TERMINATION VALUE
  TABLE</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexE"   title="Click to goto ANNEX E">ANNEX E - AMORTIZATION SCHEDULE</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexF"   title="Click to goto ANNEX F">ANNEX F - RETURN PROVISIONS</a></font></td>
 </tr>
 <tr>
  <td width="100%" valign=top><font size=2><a href="#AnnexG"   title="Click to goto ANNEX G">ANNEX G - PENDING PROCEEDINGS</a></font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>

<page>


<p align=center><b><font size=2>MASTER LEASE AGREEMENT</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS
MASTER LEASE AGREEMENT (&quot;<b>Agreement</b>&quot;) is made as of the 30th day
of May, 2001, between GENERAL ELECTRIC CAPITAL CORPORATION, with an office at 4
North Park Drive, Suite 500, Hunt Valley, Maryland 21030 (hereinafter called,
together with its successors and assigns, if any, &quot;<b>Lessor</b>&quot;), and NORTHWEST
PIPE COMPANY, an Oregon corporation with its mailing address and chief place of
business at 200 SW Market Street, Portland, Oregon 97201 (hereinafter called
&quot;<b>Lessee</b>&quot;).</font></p>

<p align=center><b><font size=2>WITNESSETH:</font></b></p>

<p><b><font size=2>1.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=LeaseFinancing><b>LEASE FINANCING</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
This Agreement shall be effective from and after the date of execution
hereof.&nbsp; Subject to the terms and
conditions set forth below, Lessor agrees to lease to Lessee, and Lessee agrees
to lease from Lessor, the equipment (&quot;<b>Equipment</b>&quot;) described in Annex A to
any schedule hereto (&quot;<b>Schedule</b>&quot;).&nbsp; Terms defined or specified in a Schedule and not otherwise
defined herein shall have the meanings ascribed to them in such Schedule.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
The obligation of Lessor to purchase the Equipment from Lessee and to lease the
same to Lessee shall be subject to receipt by Lessor, on or prior to the
earlier of the Lease Commencement Date or Last Delivery Date therefor, of each
of the following documents in form and substance satisfactory to Lessor:&nbsp; (i) a Schedule relating to the Equipment
then to be leased hereunder, (ii) a Bill of Sale, in the form of Annex B to the
applicable Schedule, in favor of Lessor, (iii) evidence of insurance which
complies with the requirements of Section 6, and (iv) such other documents as
Lessor may reasonably request.&nbsp;
Simultaneously with the execution of the Bill of Sale, Lessee shall also
execute a Certificate of Acceptance, in the form of Annex C to the applicable
Schedule, covering all of the Equipment described in the Bill of Sale. Upon
execution by Lessee of any Certificate of Acceptance, the Equipment described
thereon shall be deemed to have been delivered to, and irrevocably accepted by,
Lessee for lease hereunder.</font></p>

<p><b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <b>LESSEE
ACKNOWLEDGES THAT IT HAS SELECTED THE EQUIPMENT WITHOUT ANY ASSISTANCE FROM
LESSOR, ITS AGENTS OR EMPLOYEES.&nbsp; LESSOR
DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY
WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED, WRITTEN OR ORAL, WITH
RESPECT TO THE EQUIPMENT LEASED HEREUNDER OR ANY COMPONENT THEREOF, INCLUDING,
WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS,
QUALITY OF MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE,
USE OR OPERATION, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR
TITLE.</b>&nbsp; All such risks, as
between Lessor and Lessee, are to be borne by Lessee.&nbsp; Without limiting the foregoing, Lessor shall have no
responsibility or liability to Lessee or any other person with respect to any
of the following (i) any liability, loss or damage caused or alleged to be
caused directly or indirectly by any Equipment, any inadequacy thereof, any
deficiency or defect (latent or otherwise) therein, or any other circumstance
in connection therewith; (ii) the use, operation or performance of any
Equipment or any risks relating thereto; (iii) any interruption of service,
loss of business or anticipated profits or consequential damages; or (iv) the
delivery, operation, servicing, maintenance, repair, improvement or replacement
of any Equipment.&nbsp; If, and so long as,
no Default (as hereinafter defined) exists under this Agreement, Lessee shall
be, and hereby is, authorized during the Term (as hereinafter defined) to
assert and enforce, at Lessee's sole cost and expense, from time to time, in
the name of and for the account of Lessor and/or Lessee, as their interests may
appear, whatever claims and rights Lessor may have against any Supplier of the
Equipment.</font></p>

<p><b><font size=2>2.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Term><b>TERM</b></a><b>, RENT AND PAYMENT:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
The rent payable hereunder (the &quot;<b>Rent</b>&quot;) and Lessee's right to use the
Equipment shall commence on the date of execution by Lessee of the Certificate
of Acceptance for such Equipment (the &quot;<b>Lease Commencement Date</b>&quot;).&nbsp; The term of this Agreement (the &quot;<b>Term</b>&quot;)
shall be the period specified in the applicable Schedule.&nbsp; If any Term is extended or renewed, the word
&quot;Term&quot; shall be deemed to refer to all extended or renewed terms, and
all provisions of this Agreement shall apply during any extended or renewed
terms, except as otherwise may be specifically provided in writing.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Rent shall be paid to Lessor by wire transfer of immediately available funds
to:&nbsp; Bankers Trust New York, New York,
New York 10006, Account No. 50-260-660, ABA No. 021-001-033, or to such other
account as Lessor may direct in writing; and shall be effective upon receipt.&nbsp; Payments of Rent shall be in the amount set
forth in, and due in accordance with, the provisions of the applicable
Schedule.&nbsp; In no event shall any Rent
payments be refunded to Lessee.&nbsp; If Rent
is not paid within ten (10) days of its due date, Lessee agrees to pay a late
charge of Five Cents ($0.05) per dollar on, and in addition to, the amount of
such Rent but not exceeding the lawful maximum, if any.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
This Agreement is a net lease.&nbsp; Lessee's
obligation to pay Rent and other amounts due hereunder shall be absolute and
unconditional.&nbsp; Lessee shall not be
entitled to any abatement or reductions of, or set-offs against, said Rent or
other amounts, including, without limitation, those arising or allegedly arising
out of claims (present or future, alleged or actual, and including claims
arising out of strict liability in tort or negligence of Lessor) of Lessee
against Lessor under this Agreement or otherwise.&nbsp; This Agreement shall not terminate and the obligations of Lessee
shall not be affected by reason of any defect in or damage to, or loss of
possession, use or destruction of, any Equipment from whatsoever cause.&nbsp; It is the intention of the parties that
Rents and other amounts due hereunder shall continue to be payable in all
events in the manner and at the times set forth herein unless the obligation to
do so shall have been terminated pursuant to the express terms hereof.</font></p>

<p><b><font size=2>3.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Taxes><b>TAXES</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessee shall have no liability for
taxes imposed by the United States of America or any State or political subdivision
thereof which are on or measured by the net income of Lessor.&nbsp; Lessee shall report (to the extent that it
is legally permissible) and pay promptly all other taxes, fees and assessments
due, imposed, assessed or levied against any Equipment (or the purchase,
ownership, delivery, leasing, possession, use or operation thereof), this
Agreement (or any rentals or receipts hereunder), any Schedule, Lessor or
Lessee by any foreign, Federal, state or local government or taxing authority
during or related to the term of this Agreement,&nbsp; including, without limitation, all license and registration fees,
and all sales, use, personal property, excise, gross receipts, franchise, stamp
or other taxes, imposts, duties and charges, together with any penalties, fines
or interest thereon (all hereinafter called &quot;<b>Taxes</b>&quot;).&nbsp; Lessee shall (i) (on an after-tax basis)
reimburse Lessor upon receipt of written request for reimbursement for any
Taxes charged to or assessed against Lessor, (ii) on request of Lessor, submit
to Lessor written evidence of Lessee's payment of Taxes, (iii) on all reports
or returns show the ownership of the Equipment by Lessee, and (iv) send a copy
thereof to Lessor.</font></p>

<p><font size=2 color=black>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lessee&#146;s obligations, and Lessor&#146;s
rights and privileges, contained in this Section 4 shall survive the expiration
or other termination of this Agreement.</font></p>

<p><b><font size=2>4.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Delivery><b>DELIVERY</b></a><b>, USE AND
OPERATION.</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp; The parties acknowledge that this is a
sale/leaseback transaction and the Equipment is in Lessee's possession as of
the Lease Commencement Date.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp; Lessee agrees that the Equipment will be
used by Lessee solely in the conduct of its business and in a manner complying
with all applicable Federal, state, and local laws and regulations, and any
applicable insurance policies, and Lessee shall not discontinue use of the
Equipment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp; Lessee will keep the Equipment free and
clear of all liens and encumbrances other than those which result from acts of
Lessor.</font></p>

<p><b><font size=2>5.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Maintenance><b>MAINTENANCE</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessee will, at its sole expense, maintain each unit of Equipment in good
operating order, repair, condition and appearance in accordance with
manufacturer's recommendations, normal wear and tear excepted.&nbsp; Lessee shall, if at any time reasonably
requested by Lessor, affix in a prominent position on each unit of Equipment
plates, tags or other identifying labels showing the interest therein of
Lessor.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Lessee will not, without the prior consent of Lessor, affix or install any
accessory, equipment or device on any Equipment if such addition will impair
the value, originally intended function or use of such Equipment.&nbsp; All additions, repairs, parts, supplies,
accessories, equipment, and devices furnished, attached or affixed to any
Equipment which are not readily removable shall be made only in compliance with
applicable law, shall be free and clear of all liens, encumbrances or rights of
others, and shall become the property of Lessor.&nbsp; Lessee will not, without the prior written consent of Lessor and
subject to such conditions as Lessor may impose for its protection, affix or
install any Equipment to or in any other personal or real property.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
Any alterations or modifications to the Equipment that may, at any time during
the term of this Agreement, be required to comply with any applicable law, rule
or regulation shall be made at the expense of Lessee.</font></p>

<p><b><font size=2>6.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Insurance><b>INSURANCE</b></a><b>:</b></font></p>

<p><font size=2>Lessee agrees, at its own expense, to keep all
Equipment insured for such amounts as specified in Paragraph D of the Equipment
Schedule and against such hazards as Lessor may require, including, but not
limited to, insurance for damage to or loss of such Equipment and liability
coverage for personal injuries, death or property damage, with Lessor named as
additional insured and with a loss payable clause in favor of Lessor, as its
interest may appear, irrespective of any breach of warranty or other act or
omission of Lessee.&nbsp; All such policies
shall be with companies, and on terms, satisfactory to Lessor.&nbsp; Lessee agrees to deliver to Lessor evidence
of insurance satisfactory to Lessor.&nbsp; No
insurance shall be subject to any co-insurance clause.&nbsp; Lessee hereby appoints Lessor as Lessee's
attorney-in-fact to make proof of loss and claim for insurance, and to make
adjustments with insurers and to receive payment of and execute or endorse all
documents, checks or drafts in connection with payments made as a result of
such insurance policies.&nbsp; Any expense of
Lessor in adjusting or collecting insurance shall be borne by Lessee.&nbsp; Lessee will not make adjustments with
insurers except (i) with respect to claims for damage to any unit of Equipment
where the repair costs do not exceed ten (10%) of such unit's fair market
value, or (ii) with Lessor's written consent.&nbsp;
Said policies shall provide that the insurance may not be altered or cancelled
by the insurer until after thirty (30) days written notice to Lessor.&nbsp; Provided that no Default has occurred and is
continuing hereunder, upon request of Lessee after Lessee has completed repairs
to the damaged Equipment Lessor shall apply proceeds of insurance to the cost
of such repairs. Otherwise, Lessor may, at its option, apply proceeds of
insurance, in whole or in part, to (i) repair or replace Equipment or any
portion thereof, or (ii) satisfy any obligation of Lessee to Lessor hereunder.</font></p>

<p><b><font size=2>7.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=LossOrDamage><b>LOSS OR
DAMAGE</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessee hereby assumes and shall bear the entire risk of any loss, theft, damage
to, or destruction of, any unit of Equipment from any cause whatsoever from the
time the Equipment is shipped to Lessee.</font></p>

<p><font size=2>(b)&nbsp;
Lessee shall promptly and fully notify Lessor in writing if any unit of
Equipment shall be or become worn out, lost, stolen, destroyed, irreparably
damaged in the reasonable determination of Lessee, or permanently rendered
unfit for use from any cause whatsoever (such occurrences being hereinafter
called &quot;<b>Casualty Occurrences</b>&quot;).&nbsp;
On the Rental Payment Date next succeeding a Casualty Occurrence (the
&quot;<b>Payment
Date</b>&quot;), Lessee shall pay Lessor the sum of (x) the Stipulated
Loss Value of such unit calculated in accordance with Annex D as of the Rent
Payment Date next preceding such Casualty Occurrence (&quot;<b>Calculation
Date</b>&quot;); and (y) all rental and other amounts which are due
hereunder as of the Payment Date.&nbsp; Upon
payment of all sums due hereunder, the term of this lease as to such unit shall
terminate and (except in the case of the loss, theft or complete destruction of
such unit) Lessor shall be entitled to recover possession of such unit.</font></p>

<p><b><font size=2>8.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Reports><b>REPORTS</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessee will notify Lessor in writing, within ten (10) days after any tax or
other lien shall attach to any Equipment, of the full particulars thereof and
of the location of such Equipment on the date of such notification.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Lessee will deliver to Lessor, within one hundred five (105) days of the close
of each fiscal year of Lessee, Lessee's balance sheet and profit and loss statement,
prepared in accordance with generally accepted accounting principles <b>(&quot;GAAP&quot;)</b>
consistently applied, certified by a recognized firm of certified public
accountants, together with Lessee's Form 10K filed with the Securities and
Exchange Commission (&quot;<b>SEC</b>&quot;), if any.&nbsp; Lessee will deliver to Lessor quarterly,
within sixty (60) days of the close of each fiscal quarter of Lessee, in
reasonable detail, copies of Lessee's quarterly financial report certified by
the chief financial officer of Lessee, together with Lessee's Form 10Q filed
with the SEC, if any.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
Lessee will permit Lessor to inspect any Equipment during normal business hours
upon reasonable notice.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)
Lessee will keep the Equipment at the Equipment Location (specified in the
applicable Schedule) within the Continental United States and will promptly
notify Lessor of any relocation of Equipment.&nbsp;
Upon the written request of Lessor, Lessee will notify Lessor forthwith
in writing of the location of any Equipment as of the date of such notification.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)
Lessee will promptly and fully report to Lessor in writing if any Equipment is
lost or damaged (where the estimated repair costs would exceed ten percent
(10%) of its then fair market value), or is otherwise involved in an accident
causing personal injury or property damage.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)
Within thirty (30) days after any request by Lessor, Lessee will furnish a
certificate of an authorized officer of Lessee stating that he has reviewed the
activities of Lessee and that, to the best of his knowledge, there exists no
Default or event which, with the giving of notice or the lapse of time (or
both), would become such a Default.</font></p>

<p><b><font size=2>9.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=EndOfLeaseOptions><b>END OF LEASE
OPTIONS</b></a><b>.</b></font></p>

<p><font size=2>Upon the expiration of the Term of each
Schedule, Lessee shall return, or purchase, or extend or renew the Term with
respect to, all (but not less than all) of the Equipment leased under all
Schedules executed hereunder upon the following terms and conditions.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Renewal><u>Renewal</u></a><u>.</u>&nbsp;&nbsp; So long as no Default has occurred and is
continuing hereunder and Lessee shall not have exercised its option to return
the Equipment or its purchase option pursuant to this Section, Lessee shall
have the option, upon the expiration of the Basic Term and/or the first Renewal
Term of the first Schedule to be executed under this Agreement, to renew the
Agreement with respect to all, but not less than all, of the Equipment leased
under all Schedules executed hereunder for an additional term of twelve (12)
months (each, a &quot;<b>Renewal Term</b>&quot;) at the Renewal Term
Rent.&nbsp; Including all Renewal Terms, the
maximum term of each Schedule to be executed under this Agreement shall be five
(5) years (the Basic Term plus two (2) Renewal Terms) (the &quot;<b>Maximum
Lease Term</b>&quot;).</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Purchase><u>Purchase</u></a>.&nbsp;&nbsp; So long as Lessee shall not have exercised
its extension option or its option to renew this Agreement or its option to
return the Equipment pursuant to this Section, Lessee shall have the option,
upon the expiration of the Term of each Schedule, to purchase all (but not less
than all) of the Equipment described on all Schedules executed hereunder upon
the following terms and conditions:&nbsp; If
Lessee desires to exercise this option with respect to the Equipment, Lessee
shall pay to Lessor on the last day of the Term with respect to each individual
Schedule, in addition to the scheduled Rent (if any) then due on such date and
all other sums then due hereunder, in cash the purchase price for the Equipment
so purchased, determined as hereinafter provided.&nbsp; The purchase price of the Equipment shall be an amount equal to
the Fixed Purchase Price of such Equipment (as specified on the Schedule), plus
all taxes and charges upon sale and all other reasonable and documented
expenses incurred by Lessor in connection with such sale, including, without
limitation, any such expenses incurred based on a notice from Lessee to Lessor
that Lessee intended to return any such items of Equipment. Upon satisfaction
of the conditions specified in this Paragraph, Lessor will transfer, on an AS
IS, WHERE IS BASIS, without recourse or warranty, express or implied, of any
kind whatsoever (<b>&#147;AS IS BASIS&#148;</b>), all of Lessor's interest in and to the
Equipment. Lessor shall not be required to make and may specifically disclaim
any representation or warranty as to the condition of such Equipment and other
matters (except that Lessor shall warrant that it has conveyed whatever
interest it received in the Equipment free and clear of any lien or encumbrance
created by Lessor).&nbsp; Lessor shall
execute and deliver to Lessee such Uniform Commercial Code Statements of
Termination as reasonably may be required in order to terminate any interest of
Lessor in and to the Equipment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Return><u>Return</u></a>.&nbsp; Unless Lessee shall have exercised its
extension option or its purchase option pursuant to this Section, upon the
expiration of the Term of each Schedule, Lessee shall return all (but not less
than all) of the Equipment described on all Schedules executed hereunder, to
Lessor upon the following terms and conditions:&nbsp; Lessee shall (i) pay to Lessor on the last day of the Term with
respect to each individual Schedule, in addition to the scheduled Rent then due
on such date and all other sums then due hereunder, a terminal rental
adjustment amount equal to the Fixed Purchase Price of such Equipment, and (ii)
return the Equipment to Lessor in accordance with the provisions of Annex F
attached hereto. Thereafter, Lessor and Lessee shall arrange for the
commercially reasonable sale, scrap or other disposition of the Equipment.&nbsp; Upon satisfaction of the conditions specified
in this Paragraph, Lessor will transfer, on an AS IS BASIS, all of Lessor's
interest in and to the Equipment.&nbsp;
Lessor shall not be required to make and may specifically disclaim any
representation or warranty as to the condition of such Equipment and other
matters (except that Lessor shall warrant that it has conveyed whatever
interest it received in the Equipment free and clear of any liens or
encumbrances created by Lessor).&nbsp; Lessor
shall execute and deliver to Lessee such Uniform Commercial Code Statements of
Termination as reasonably may be required in order to terminate any interest of
Lessor in and to the Equipment.&nbsp; Upon
the sale, scrap or other disposition of the Equipment the net sales proceeds
with respect to the Equipment sold will be paid to, and held and applied by,
Lessor as follows:&nbsp; Lessor shall
promptly thereafter pay to Lessee an amount equal to the Residual Risk Amount
(as specified in the Schedule) of the Equipment (less all reasonable costs,
expenses and fees, including storage, reasonable and necessary maintenance and other
remarketing fees incurred in connection with the sale, scrap, or disposition of
such Equipment) plus all net proceeds, if any, of such sale in excess of the
Residual Risk Amount of the Equipment and applicable taxes, if any.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Extension><u>Extension</u></a>.&nbsp; So long as no Default has occurred and is
continuing hereunder and Lessee shall not have exercised its option to return
the Equipment or its purchase option pursuant to this Section, and provided
that Lessee shall have exercised its option to renew this Agreement pursuant to
this Section with respect to all available Renewal Terms, Lessee shall have the
option, upon the expiration of all available Renewal Terms, to extend the
Agreement with respect to all, but not less than all, of the Equipment for an
additional term of twelve (12) months (the &quot;<b>Extension Term</b>&quot;) at a
monthly rental to be paid in arrears on the same day of each month on which the
prior Renewal Term Rent installment was paid, and calculated as the product of
(i) the Capitalized Lessor's Cost, <u>times</u> (ii) a lease rate factor
calculated by Lessor, which when so multiplied times the Capitalized Lessor's
Cost, will result in a product that is equal to the amount necessary to fully
repay to Lessor any unpaid balance of the Capitalized Lessor's Cost (determined
as of the date on which the last available Renewal Term expired), together with
interest thereon at a rate per annum equal to three hundred seventy-five (375)
basis points over the then current yield to maturity of U.S. Treasury Notes
having a one year maturity, in twelve (12) equal monthly installments.&nbsp; At the end of the Extension Term, provided
that Lessee is not then in Default under this Agreement, Lessee shall purchase
all, and not less than all, of such Equipment for $1.00 cash, together with all
Rent and other sums then due on such date, plus all taxes and charges upon
transfer and all other reasonable and documented expenses incurred by Lessor in
connection with such transfer.&nbsp; Upon
satisfaction of the conditions specified in this Paragraph, Lessor will
transfer, on an AS IS BASIS, all of Lessor's interest in and to the Equipment.
Lessor shall not be required to make and may specifically disclaim any
representation or warranty as to the condition of the Equipment and any other
matters (except that Lessor shall warrant that it has conveyed whatever
interest it received in the Equipment free and clear of any lien or encumbrance
created by Lessor).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=NoticeOfElection><u>Notice of
Election</u></a>.&nbsp; Lessee shall give
Lessor written notice of its election of the options specified in this Section
not less than one hundred eighty (180) days nor more than three hundred
sixty-five (365) days before the expiration of the Basic Term or any Renewal
Term of the first Schedule to be executed under this Agreement.&nbsp; Such election shall be effective with
respect to all Equipment described on all Schedules executed hereunder.&nbsp; If Lessee fails timely to provide such
notice, without further action Lessee automatically shall be deemed to have
elected (1) to renew the Term of this Agreement pursuant to Paragraph (a) of
this Section if a Renewal Term is then available hereunder, or (2) to purchase
the Equipment pursuant to Paragraph (c) of this Section if a Renewal Term is
not then available hereunder.</font></p>

<p><b><font size=2>10.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=DefaultRemedies><b>DEFAULT;
REMEDIES</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessor may in writing declare this Agreement in default <b>(&quot;Default&quot;)</b> if: (1)
Lessee breaches its obligation to pay Rent or any other sum when due and fails
to cure the breach within ten (10) days; (2) Lessee breaches any of its
insurance obligations under Section 6 hereof; (3) Lessee breaches any of its
other obligations hereunder and fails to cure that breach within thirty (30)
days after written notice thereof; (4) any representation or warranty made by
Lessee in connection with this Agreement shall be false or misleading in any
material respect; (5) Lessee or any guarantor or other obligor of Lessee&#146;s
obligations hereunder (&#147;Guarantor&#148;) becomes insolvent or ceases to do business
as a going concern; (6) a petition is filed by or against Lessee or any
Guarantor under any bankruptcy or insolvency laws and, if filed against Lessee
or any Guarantor, shall not be dismissed within forty-five (45) days; (7)
Lessee or any Guarantor shall have terminated its corporate existence,
consolidated with, merged into, or conveyed or leased substan&#173;tially all of its
assets as an entirety to any person (such actions being referred to as an
&quot;Event&quot;), unless not less than sixty (60) days prior to such
Event:&nbsp; (x) such person is organized and
existing under the laws of the United States or any state, and executes and
delivers to Lessor an agreement containing an effective assumption by such
person of the due and punctual performance of this Agreement or guaranty
hereof, as the case may be; and (y) Lessor is reasonably satisfied as to the
credit&#173;worthiness of such person; (8) there occurs a default under any guaranty
executed in connection with this Agreement and the applicable grace period with
respect thereto shall have expired; or (9) Lessee shall be in default under any
other agreement between Lessor and Lessee,&nbsp;
or any other material obligation for borrowed money, for the deferred
purchase price of property or any lease agreement, and the applicable grace
period with respect thereto shall have expired; or (10)&nbsp; Lessee or any Guarantor is a privately held
corporation and effective control of Lessee&#146;s or any Guarantor&#146;s voting capital
stock, issued and outstanding from time to time, is not retained by the present
stockholders (unless Lessee shall have provided sixty (60) days&#146; prior written
notice to Lessor of the proposed disposition of stock and Lessor shall have
consented thereto in writing); or (11)&nbsp;
Lessee or any Guarantor is a publicly held corporation and as a result
of or in connection with a material change in the ownership of Lessee&#146;s or any
Guarantor&#146;s capital stock, Lessee&#146;s or any Guarantor&#146;s debt-to-worth ratio
equals or exceeds twice Lessee&#146;s or any Guarantor&#146;s debt-to-worth ratio as of
the date of this Agreement (unless Lessor shall have given its prior written
consent thereto).&nbsp; As used herein, <b>&#147;debt-to-worth
ratio&#148;</b> shall mean the ratio of (x) total liabilities which, in
accordance with generally accepted accounting principles (<b>&#147;GAAP&#148;</b>) would be included in
the liability side of a balance sheet, to (y) tangible net worth including the sum
of the par or stated value of all outstanding capital stock, surplus and
undivided profits, less any amounts attributable to goodwill, patents,
copyrights, mailing lists, catalogs, trademarks, bond discount and underwriting
expenses, organization expense and other intangibles, all determined in
accordance with GAAP.&nbsp; Any provision of
this Agreement to the contrary notwithstanding.&nbsp; Lessor may exercise all rights and remedies hereunder
independently with respect to each Schedule.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
After Default, Lessee shall, without further demand, forthwith pay to Lessor
(i) as liquidated damages for loss of a bargain and not as a penalty, the
Stipulated Loss Value of the Equipment (calculated in accordance with Annex D
as of the Rent Payment Date next preceding the declaration of default), and
(ii) all Rents and other sums then due hereunder.&nbsp; If Lessee fails to pay the amounts specified in the preceding
sentence, then, at the request of Lessor, Lessee shall comply with all the
return provisions set forth in the related Schedule and Annex F thereto.&nbsp; Lessee hereby authorizes Lessor to enter,
with or without legal process, any premises where any Equipment is located and
take possession thereof.&nbsp;&nbsp;&nbsp; Lessor may,
but shall not be required to, sell Equipment at private or public sale, in bulk
or in parcels, with or without notice, and without having the Equipment present
at the place of sale; or Lessor may, but shall not be required to, lease,
otherwise dispose of or keep idle all or part of the Equipment; and Lessor may use
Lessee's premises for any or all of the foregoing without liability for rent,
costs, damages or otherwise.&nbsp; The
proceeds of sale, lease or other disposition, if any, shall be applied in the
following order of priorities:&nbsp; (1) to
pay all of Lessor's costs, charges and expenses incurred in taking, removing,
holding, repairing and selling, leasing or otherwise disposing of Equipment;
then, (2) to the extent not previously paid by Lessee, to pay Lessor all sums
due from Lessee hereunder; then (3) to reimburse to Lessee any sums previously
paid by Lessee as liquidated damages; and (4) any surplus shall be paid to
Lessee.&nbsp; Lessee shall pay any deficiency
in clauses (1) and (2) forthwith.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
In addition to the foregoing rights, Lessor may terminate the lease as to any
or all of the Equipment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)
The foregoing remedies are cumulative, and any or all thereof may be exercised
in lieu of or in addition to each other or any remedies at law, in equity, or
under statute.&nbsp; Lessee waives notice of
sale or other disposition (and the time and place thereof), and the manner and
place of any advertising.&nbsp; If permitted
by law, Lessee shall pay reasonable attorney's fees actually incurred by Lessor
in enforcing the provisions of this Lease and any ancillary documents.&nbsp; Waiver of any default shall not be a waiver
of any other or subsequent default.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)
Any default under the terms of this or any other agreement between Lessor and
Lessee may be declared by Lessor a default under this and any such other
agreement.</font></p>

<page>


<p><b><font size=2>11.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Assignment><b>ASSIGNMENT</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
LESSEE SHALL NOT ASSIGN, MORTGAGE, SUBLET OR HYPOTHECATE ANY EQUIPMENT OR THE
INTEREST OF LESSEE HEREUNDER WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Lessor may, without the consent of Lessee, assign this Agreement or any
Schedule, or the right to enter into any Schedule.&nbsp; Lessee agrees that it will pay all Rent and other amounts payable
under each Schedule to the Lessor named therein; provided, however, if Lessee
receives written notice of an assignment from Lessor, Lessee will pay all Rent
and other amounts payable under any assigned Schedule to such assignee or as
instructed by Lessor.&nbsp; Each Schedule,
incorporating by reference the terms and conditions of this Agreement,
constitutes a separate instrument of lease, and the Lessor named therein or its
assignee shall have all rights as &quot;Lessor&quot; thereunder separately
exercisable by such named Lessor or assignee as the case may be, exclusively
and independently of Lessor or any assignee with respect to other Schedules
executed pursuant hereto.&nbsp; Without
limiting the generality of the foregoing, the grant of security interest in
Section 13(b) hereof shall, as it relates to the Equipment leased under each
Schedule (and to the proceeds and other collateral referred to in Section 13(b)
hereof), be deemed to have been granted solely to the Lessor named therein, or
to its assignee, as applicable and such Equipment (and other related
collateral) shall not be deemed to collateralize Lessee's obligations under any
of the Schedules to which such named Lessor or assignee, as the case may be, is
not a party.&nbsp; Lessee further agrees to
confirm in writing receipt of a notice of assignment as reasonably may be
requested by assignee.&nbsp; Lessee hereby
waives and agrees not to assert against any such assignee any defense, set&#150;off,
recoupment claim or counterclaim which Lessee has or may at any time have
against Lessor or any other person for any reason whatsoever, provided,
however, Lessee may assert any claim it has against Lessor in a separate legal
action against Lessor.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp; Lessee acknowledges that it has been advised
that General Electric Capital Corporation may act hereunder for itself and as
agent for certain third parties (each being herein referred to as a <b>&#147;Participant&#148;</b>
and, collectively, as the <b>&#147;Participants&#148;</b>); that the interest of the
Lessor in this Agreement, the Equipment Schedules, related instruments and
documents and/or the Equipment may be conveyed to, in whole or in part, and may
be used as security for financing obtained from, one or more third parties
without the consent of Lessee (the <b>&#147;Syndication&#148;</b>).&nbsp; Lessee agrees reasonably to cooperate with Lessor in connection
with the Syndication, including the execution and delivery of such other
documents, instruments, notices, opinions, certificates and acknowledgements as
reasonably may be required by Lessor or such Participant; provided, however, in
no event shall Lessee be required to consent to any change that would adversely
affect any of the economic terms of the transactions contemplated herein.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)
Subject always to the foregoing, this Agreement inures to the benefit of, and
is binding upon, the successors and assigns of the parties hereto.</font></p>

<p><b><font size=2>12.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Indemnification><b>INDEMNIFICATION</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessee hereby agrees to indemnify, save and keep harmless Lessor, its agents,
employees, successors and assigns (on an after-tax basis), from and against any
and all losses, damages, penalties, injuries, claims, actions and suits,
including legal expenses, of whatsoever kind and nature, in contract or tort,
and including, but not limited to, Lessor's strict liability in tort, arising
out of (i) the selection, manufacture, purchase, acceptance or rejection of
Equipment, the ownership of Equipment during the Term, and the delivery, lease,
possession, maintenance, uses, condition, return or operation of the Equipment
(including, without limitation, latent and other defects, whether or not
discoverable by Lessor or Lessee and any claim for patent, trademark or
copyright infringement or environmental damage), or (ii) the condition of
Equipment sold or disposed of after use by Lessee, any sublessee or employees
of Lessee.&nbsp; Lessee shall, upon request,
defend any actions based on, or arising out of, any of the foregoing.</font></p>

<p><font size=2>&nbsp;(b) All
of Lessor's rights, privileges and indemnities contained in this Section shall
survive the expiration or other termination of this Agreement and the rights,
privileges and indemnities contained herein are expressly made for the benefit
of, and shall be enforceable by Lessor, its successors and assigns.</font></p>

<page>


<p><b><font size=2>13.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=OwnershipForTaxPurposesGrantOfSecurityIn><b>OWNERSHIP FOR TAX PURPOSES; GRANT OF
SECURITY INTEREST; USURY SAVINGS</b></a><b>.</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
For income tax purposes, Lessor will treat Lessee as the owner of the
Equipment.&nbsp; Accordingly, Lessor agrees
(i) to treat Lessee as the owner of the Equipment on its federal income tax
return, (ii) not to take actions or positions inconsistent with such treatment
on or with respect to its federal income tax return, and not claim any tax
benefits available to an owner of the Equipment on or with respect to its
federal income tax return.&nbsp; The
foregoing undertakings by Lessor shall not be violated by Lessor's taking a tax
position through inadvertence so long as such inadvertent tax position is
reversed by Lessor promptly upon its discovery.&nbsp; Lessor shall in no event be liable to Lessee if Lessee fails to secure
any of the tax benefits available to the owner of the Equipment.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
In order to secure the prompt payment of the Rent and all of the other amounts
from time to time outstanding under and with respect to the Schedules, and the
performance and observance by Lessee of all the agreements, covenants and
provisions hereof and thereof (including, without limitation, all of the
agreements, covenants and provisions of the Lease that are incorporated
therein), Lessee hereby grants to Lessor a first priority security interest in
the Equipment leased under the Schedules, together with all additions,
attachments, accessions, accessories and accessions thereto whether or not
furnished by the supplier of the Equipment and any and all substitutions,
replacements or exchanges therefor, in each such case in which Lessee shall
from time to time acquire an interest, and any and all insurance and/or other
proceeds (but without power of sale) of the property in and against which a
security interest is granted hereunder.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
It is the intention of the parties hereto to comply with any applicable usury
laws to the extent that any Schedule is determined to be subject to such laws;
accordingly, it is agreed that, notwithstanding any provision to the contrary
in any Schedule or the Lease, in no event shall any Schedule require the
payment or permit the collection of interest in excess of the maximum amount
permitted by applicable law.&nbsp; If any
such excess interest is contracted for, charged or received under any Schedule
or the Lease, or in the event that all of the principal balance shall be
prepaid, so that under any of such circumstances the amount of interest
contracted for, charged or received under any Schedule or the Lease shall
exceed the maximum amount of interest permitted by applicable law, then in such
event&nbsp; (1) the provisions of this
paragraph shall govern and control,&nbsp; (2)
neither Lessee nor any other person or entity now or hereafter liable for the
payment hereof shall be obligated to pay the amount of such interest to the
extent that it is in excess of the maximum amount of interest permitted by
applicable law,&nbsp; (3) any such excess
which may have been collected shall be either applied as a credit against the
then unpaid principal balance or refunded to Lessee, at the option of the
Lessor, and&nbsp; (4) the effective rate of
interest shall be automatically reduced to the maximum lawful contract rate
allowed under applicable law as now or hereafter construed by the courts having
jurisdiction thereof.&nbsp; It is further
agreed that without limitation of the foregoing, all calculations of the rate
of interest contracted for, charged or received under any Schedule or the Lease
which are made for the purpose of determining whether such rate exceeds the
maximum lawful contract rate, shall be made, to the extent permitted by
applicable law, by amortizing, prorating, allocating and spreading in equal
parts during the period of the full stated term of the indebtedness evidenced
hereby, all interest at any time contracted for, charged or received from
Lessee or otherwise by Lessor in connection with such indebtedness; provided,
however, that if any applicable state law is amended or the law of the United
States of America preempts any applicable state law, so that it becomes lawful
for Lessor to receive a greater interest per annum rate than is presently
allowed, the Lessee agrees that, on the effective date of such amendment or
preemption, as the case may be, the lawful maximum hereunder shall be increased
to the maximum interest per annum rate allowed by the amended state law or the
law of the United States of America (but not in excess of the interest rate
contemplated hereunder).</font></p>

<p><b><font size=2>14.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=RepresentationsAndWarrantiesOfLessee><b>REPRESENTATIONS AND WARRANTIES OF LESSEE</b></a><b>:</b></font></p>

<p><font size=2>Lessee hereby represents and warrants to Lessor
that on the date hereof and on the date of execution of each Schedule:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
Lessee has adequate power and capacity to enter into, and perform under, this
Agreement and all related documents (together, the &quot;<b>Documents</b>&quot;) and is duly
qualified to do business wherever necessary to carry on its present business
and operations, including the jurisdiction(s) where the Equipment is or is to
be located.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
The Documents have been duly authorized, executed and delivered by Lessee and
constitute valid, legal and binding agreements, enforceable in accordance with
their terms, except to the extent that the enforcement of remedies therein
provided may be limited under applicable bankruptcy and insolvency laws.</font></p>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>(c) No approval, consent or withholding
of objections is required from any governmental authority or instrumentality
with respect to the entry into or performance by Lessee of the Documents except
such as have already been obtained.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)
The entry into and performance by Lessee of the Documents will not:&nbsp; (i)&nbsp;
violate any judgment, order, law or regulation applicable to Lessee or
any provision of Lessee's articles of incorporation, charter or by&#150;laws;
or (ii) result in any breach of, constitute a default under or result in the
creation of any lien, charge, security interest or other encumbrance upon any
Equipment pursuant to any indenture, mortgage, deed of trust, bank loan or
credit agreement or other instrument (other than this Agreement) to which
Lessee is a party.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)
Other than those set forth on Annex G, there are no suits or proceedings
pending or threatened in court or before any commission, board or other
administrative agency against or affecting Lessee, which will have a material
adverse effect on the ability of Lessee to fulfill its obligations under this
Agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)
The Equipment accepted under any Certificate of Acceptance is and will remain
tangible personal property.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)
Each financial statement delivered to Lessor has been prepared in accordance
with GAAP, and since the date of the most recent such financial statement,
there has been no material adverse change.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h)
Lessee is duly incorporated and will be at all times validly existing and in
good standing under the laws of the state of its incorporation (specified in
the first sentence of this Agreement).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)
The Equipment will at all times be used for commercial or business purposes.</font></p>

<p><b><font size=2>15.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=ChoiceOfLawJurisdiction><b>CHOICE OF
LAW; JURISDICTION</b></a><b>:</b></font></p>

<p><font size=2>THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO
THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE), INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE
EQUIPMENT.&nbsp; The parties agree that any
action or proceeding arising out of or relating to this Agreement may be
commenced in the United States District Court for the Southern District of New
York.</font></p>

<p><b><font size=2>16.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=Miscellaneous><b>MISCELLANEOUS</b></a><b>:</b></font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)
<b>LESSEE
HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF ACTION BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS LEASE, ANY
OF THE RELATED DOCUMENTS, ANY DEALINGS BETWEEN LESSEE AND LESSOR RELATING TO
THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE
RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN LESSEE AND LESSOR.</b>&nbsp; The scope of this waiver is intended to be
all encompassing of any and all disputes that may be filed in any court
(including, without limitation, contract claims, tort claims, breach of duty
claims, and all other common law and statutory claims).&nbsp; <b>THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY
SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS LEASE,
ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION.</b>&nbsp; In the event of litigation, this Agreement may be filed as a
written consent to a trial by the court.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)
Any cancellation or termination by Lessor, pursuant to the provision of this
Agreement, any Schedule, supplement or amendment hereto, or the lease of any
Equipment hereunder, shall not release Lessee from any then outstanding
obligations to Lessor hereunder.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)
All Equipment shall at all times remain personal property of Lessee regardless
of the degree of its annexation to any real property and shall not by reason of
any installation in, or affixation to, real or personal property become a part
thereof.</font></p>

<page>


<p><br>
<font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)
Time is of the essence of this Agreement.&nbsp;
Lessor's failure at any time to require strict performance by Lessee of
any of the provisions hereof shall not waive or diminish Lessor's right
thereafter to demand strict compliance therewith.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)
Lessee agrees, upon Lessor's request, to execute any instrument necessary or
expedient for filing, recording or perfecting the interest of Lessor.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)
All notices required to be given hereunder shall be in writing, personally
delivered, delivered by overnight courier service, or sent by certified mail,
return receipt requested, addressed to the other party at its respective
address stated above or at such other address as such party shall from time to
time designate in writing to the other party; and shall be effective from the
date of receipt.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)
This Agreement and any Schedule and Annexes thereto constitute the entire
agreement of the parties with respect to the subject matter hereof.&nbsp; <b>NO VARIATION OR MODIFICATION OF THIS AGREEMENT OR ANY
WAIVER OF ANY OF ITS PROVISIONS OR CONDITIONS, SHALL BE VALID UNLESS IN WRITING
AND SIGNED BY AN AUTHORIZED REPRESENTATIVE OF THE PARTIES HERETO.</b>&nbsp; Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (h)
The representations, warranties and covenants of Lessee herein shall be
deemed&nbsp; to survive the closing
hereunder. Lessor's obligations to acquire and lease specific items of
Equipment shall be conditioned upon Lessee providing to Lessor such information
with respect to Lessee's financial condition as Lessor may require, and Lessor
being satisfied that there shall have been no material adverse change in the
business or financial condition of Lessee from the date of execution
hereof.&nbsp; The obligations of Lessee under
Sections 3, 9(c), 12 and 16(l) hereof which accrue during the term of this
Agreement and obligations which by their express terms survive the termination
of this Agreement, shall survive the termination of this Agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)
In case of a failure of Lessee to comply with any provision of this Agreement,
Lessor shall have the right, but shall not be obligated, to effect such
compliance, in whole or in part; and all moneys spent and expenses and
obligations incurred or assumed by Lessor in effecting such compliance (together
with interest thereon at the rate specified in Paragraph (j) of this Section)
shall constitute additional Rent due to Lessor within five (5) days after the
date Lessor sends notice to Lessee requesting payment.&nbsp; Lessor's effecting such compliance shall not
be a waiver of Lessee's default.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (j)
Any Rent or other amount not paid to Lessor when due hereunder shall bear
interest, both before and after any judgment or termination hereof, at the
lesser of eighteen percent (18%) per annum or the maximum rate allowed by law.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (k)
Any provisions in this Agreement and any Schedule which are in conflict with
any statute, law or applicable rule shall be deemed omitted, modified or
altered to conform thereto.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (l)&nbsp; Lessee agrees to pay on demand all
reasonable costs and expenses incurred by Lessor in connection with the
preparation, execution, delivery, filing, recording, and administration of any
of the Documents, including, without limitation, the reasonable fees and
out-of-pocket expenses of counsel for Lessor, and all costs and expenses, if
any, in connection with the enforcement of any of the Documents.&nbsp; In addition, Lessee shall pay any and all
stamp and other taxes and fees payable or determined to be payable in
connection with the execution, delivery, filing and recording of any of the
Documents and the other documents to be delivered under the Documents, and
agrees to save Lessor harmless from and against any and all liabilities with
respect to or resulting from any delay attributed to Lessee in paying or
failing to pay such taxes and fees.</font></p>

<page>


<p><b><font size=2>17.</font></b><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <a name=ChattelPaper><b>CHATTEL
PAPER</b></a><b>:</b></font></p>

<p><font size=2>To the extent that any Schedule would constitute
chattel paper, as such term is defined in the Uniform Commercial Code as in
effect in any applicable jurisdiction, no security interest therein may be
created through the transfer or possession of this Agreement in and of itself
without the transfer or possession of the original of a Schedule executed
pursuant to this Agreement and incorporating this Agreement by reference; and
no security interest in this Agreement and a Schedule may be created by the
transfer or possession of any counterpart of the Schedule other than the
original thereof, which shall be identified as the document marked
&quot;Original&quot; and all other counterparts shall be marked &quot;Duplicate&quot;.</font></p>

<p><b><font size=2>IN
WITNESS WHEREOF</font></b><font size=2>,
Lessee and Lessor have caused this Master Lease Agreement to be executed by
their duly authorized representatives as of the date first above written.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="46%" colspan=2 valign=top><font size=2>LESSOR:</font></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="46%" colspan=2 valign=top><font size=2>LESSEE:</font></td>
 </tr>
 <tr>
  <td width="46%" colspan=2 valign=top>&nbsp;</td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="46%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" colspan=2 valign=top><font size=2>GENERAL ELECTRIC
  CAPITAL CORPORATION</font></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="46%" colspan=2 valign=top><font size=2>NORTHWEST PIPE
  COMPANY</font></td>
 </tr>
 <tr>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>&nbsp;</td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="8%" valign=top><font size=2>By:</font></td>
  <td width="37%" valign=top><font size=2>/s/ Steven R.
  DeCarlo</font></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top><font size=2>By:</font></td>
  <td width="37%" valign=top><font size=2>/s/Brian W. Dunham</font></td>
 </tr>
 <tr>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="8%" valign=top><font size=2>Name:</font></td>
  <td width="37%" valign=top><font size=2>Steven R. DeCarlo</font></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top><font size=2>Name:</font></td>
  <td width="37%" valign=top><font size=2>Brian W. Dunham</font></td>
 </tr>
 <tr>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="8%" valign=top><font size=2>Title:</font></td>
  <td width="37%" valign=top><font size=2>Transaction &amp;
  Syndication Manager</font></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top><font size=2>Title:</font></td>
  <td width="37%" valign=top><font size=2>Chief Executive
  Officer</font></td>
 </tr>
 <tr>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="8%" valign=top>&nbsp;</td>
  <td width="37%" valign=top>
<hr size=1 width="100%" noshade color=black align=right></td>
 </tr>
</table>

<p align=center><font size=2>&nbsp;</font></p>

<page>


<p align=center><font size=2>AMENDMENT TO MASTER LEASE AGREEMENT</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; THIS AMENDMENT TO MASTER LEASE
AGREEMENT is made as of the <u>30th</u> day of May, 2001, by and between
GENERAL ELECTRIC CAPITAL CORPORATION (&#147;Lessor&#148;) and NORTHWEST PIPE COMPANY&nbsp; (&#147;Lessee&#148;).</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The parties have heretofore entered
into that certain Master Lease Agreement dated as of May <u>30</u>, 2001 (the
&#147;Lease&#148;).&nbsp; The parties desire to amend
the Lease pursuant to the terms and conditions hereinafter set forth.&nbsp; Capitalized terms used herein without
definition shall have the meaning given them in the Lease.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOW, THEREFORE, in consideration of
the sum of Ten Dollars ($10.00) in hand paid, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=40 valign=top>&nbsp;</td>
  <td width=31 valign=top><font size=2>1.</font></td>
  <td width=703 valign=top><font size=2>Lessee covenants and agrees that Lessee shall,
  on a consolidated basis,&nbsp; at all times
  during the term of the Lease and any Schedule executed pursuant thereto:</font></td>
 </tr>
</table>

<dir>
<p><font size=2>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintain
a Tangible Net Worth, determined as of each fiscal quarter end, of not less
than an aggregate of (i) $85,000,000.00, plus (ii) 75% of cumulative consolidated
net income for all fiscal quarters ending after December 31, 2000, in which
such net income was greater than zero, and (iii) the amount by which the
consolidated shareholder's equity has increased or shall increase after
December 31, 2000 solely as a result of the issuance of common or preferred
stock or the conversion of debt securities into such stock, with &quot;Tangible
Net Worth&quot; defined as the aggregate of total stockholders' equity plus
subordinated debt less any intangible assets.</font></p>
</dir>

<dir>
<p><font size=2>(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintain
an EBITDA Coverage Ratio of not less than 1.75 to 1.0, determined as of each
fiscal quarter end on a trailing four (4) fiscal quarter basis, with
&quot;EBITDA&quot; defined as net profit before tax plus interest expense (net
of capitalized interest expense), depreciation expense and amortization
expense, and with &quot;EBITDA Coverage Ratio&quot; defined as EBITDA divided
by the aggregate of total interest expense plus the prior period current
maturity of long-term debt, the prior period current maturity of capital leases
and the prior period current maturity of subordinated debt.</font></p>
</dir>

<dir>
<p><font size=2>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintain
a Ratio of Funded Debt to EBITDA, determined as of each fiscal quarter end, not
greater than 2.75 to 1.00 to and including September 30, 2002, and 2.50 to
1.00&nbsp; thereafter, with &quot;Funded
Debt&quot; defined as the aggregate of all interest bearing obligations,
inclusive of (without duplication) letters of credit, capital leases and
guaranteed indebtedness, and with &quot;EBITDA&quot; as defined above.</font></p>
</dir>

<dir>
<p><font size=2>(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Maintain
a Ratio of unsecured Funded Debt to Asset Coverage, determined as of the end of
each month, not greater than 1.00 to 1.00, with &quot;Funded Debt&quot; as
defined above, and with &quot;Asset Coverage&quot; defined as the aggregate of
(i) seventy-five percent (75%) of Lessee&#146;s and its domestic subsidiaries'
accounts receivable aged to 60 days past due or less, plus (ii) fifty percent
(50%) of the book value of Lessee&#146;s and such domestic subsidiaries' inventory
under contract, and without duplication, of raw materials and finished goods,
plus (iii) 50% of the net book value of Lessee&#146;s and such domestic
subsidiaries' unencumbered real estate located in the United States, plus (iv)
50% of the net book value of Lessee&#146;s and such domestic subsidiaries'
unencumbered machinery and equipment located in the United States.</font></p>
</dir>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2>2.</font></td>
  <td width="90%" valign=top><font size=2>Accounting terms used herein without
  definition shall be determined in accordance with GAAP.&nbsp; Within Sixty (60) days after the end of
  each fiscal quarter of Lessee, Lessee will furnish to Lessor a certificate of
  the chief financial officer of Lessee setting forth the computations in
  reasonable detail and satisfactory to Lessor demonstrating compliance with
  each of the covenants contained in paragraph 1 above for the preceding fiscal
  quarter.</font></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top>&nbsp;</td>
  <td width="90%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2>3.</font></td>
  <td width="90%" valign=top><font size=2>Lessor and Lessee agree that the failure of
  Lessee to comply with any of the covenants set forth in paragraph 1 above
  shall constitute a default under the Lease.</font></td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top>&nbsp;</td>
  <td width="90%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="5%" valign=top>&nbsp;</td>
  <td width="4%" valign=top><font size=2>4.</font></td>
  <td width="90%" valign=top><font size=2>Except as expressly set forth herein, the
  terms and conditions of the Lease and any Schedule executed and delivered
  pursuant thereto remain unmodified and in full force and effect.&nbsp; This Amendment is binding upon, and inures
  to the benefit of, the successors and assigns of the parties hereto.</font></td>
 </tr>
</table>

<page>


<p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font size=2>IN WITNESS WHEREOF, the parties have
caused this Amendment to be executed as of the date first above set forth.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="53%" colspan=2 valign=top><font size=2>GENERAL ELECTRIC CAPITAL CORPORATION</font></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="53%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>By:</font></td>
  <td width="46%" valign=top><font size=2>/s/Steven R. DeCarlo</font>
<hr size=2 width="100%" noshade color=black align=right>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>Name:</font></td>
  <td width="46%" valign=top><font size=2>Steven R. DeCarlo</font>
<hr size=2 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>Title:</font></td>
  <td width="46%" valign=top><font size=2>Transaction &amp; Syndication Manater</font>
<hr size=2 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top>&nbsp;</td>
  <td width="46%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="53%" colspan=2 valign=top><font size=2>NORTHWEST PIPE COMPANY</font></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="53%" colspan=2 valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>By:</font></td>
  <td width="46%" valign=top><font size=2>/s/Brian W. Dunham</font>
<hr size=2 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>Name:</font></td>
  <td width="46%" valign=top><font size=2>Brian W. Dunham</font>
<hr size=2 width="100%" noshade color=black align=right></td>
 </tr>
 <tr>
  <td width="46%" valign=top>&nbsp;</td>
  <td width="6%" valign=top><font size=2>Title:</font></td>
  <td width="46%" valign=top><font size=2>Chief Executive Officer</font>
<hr size=2 width="100%" noshade color=black align=right></td>
 </tr>
</table>

<p align=center><font size=3 face=Times>&nbsp;</font></p>

</div>

</body>

</html>

</TEXT>
</DOCUMENT>
