LET IT BE WITNESSED, that the Owner has agreed to lease and by this Lease does grant a lease to the Tenant, and
the Tenant has agreed to this Lease, and has leased the following described premises:

|(Premises)   | Located at 100 Taylor Drive, North Tonawanda, NY 14120 to include 1,000 square feet of office
space on the second floor and engineering research and development space on the first floor,
including use of certain office machines, telephone lines, rest rooms and kitchen facilities.
Conference room space is available upon prior approval from Owner.                                                                                   
|------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(Term)       | This Lease Agreement will be automatically renewed beginning on the 1st day of July of each year,
unless either party gives three months written notice, to the other, of termination.                                                                                                                                                                                                                                                        
|(Rental)     | The Tenant agrees to pay the Owner at the Owner's address, an annual rent of Twelve Thousand
Dollars ($12,000) initially, and is subject to increases of not more than 10% annually.  Rent for
the upcoming year is to be determined by management of both companies by April 1st of each year.
Payment is due,  in full, by the 1st day of July, each year.  Should payment be received after 30
days, a penalty with interest can be levied.
|(Agreements) | The Tenant agrees to the following:                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                           
|             | (g)                                                                                                                                                                                                                                                                                                                                                                                                                                           

IN WITNESS WHEREOF, the parties hereto have affixed their hands and seals the day and year first above written.

| | Accepted by Taylor Devices, Inc.                     |  | Accepted by Tayco Developments, Inc.               
| | ---------------------------------------------------- |  | ---------------------------------------------------
| | /s/ Richard G. Hill

Richard G. Hill, Vice President |  | /s/ Douglas P. Taylor

Douglas P. Taylor, President