**EXHIBIT      10.32**

**MEMORANDUM      OF UNDERSTANDING**

| 1. | Defendants                will pay Plaintiff the following                amounts; |
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|   | A. | $30,000.00                on March 1, 2006. |
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|   | B. | Monthly                payments of $3,100.00 for 24 months beginning on April 1,                2006. |
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|   | C. | Defendants                have the option of prepaying the entire settlement balance at any                time and                will receive a 20% discount on the total remaining                balance. |
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|   | D. | If                Defendants default on any payment set forth above, Defendants stipulate                that Plaintiff may enter judgment against Defendants for the entire                remaining unpaid balance of the Settlement amount plus                $40,000.00. |
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|   | E. | Gordon                W. Davies will personally guarantee this settlement                amount. |
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| 2. | Defendants                will remove all of their property including but not limited to any                waste                materials form the leased premise on or before October 1,                2005. |
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| 3. | The                above litigation will remain stayed pending the completion of the                agreed                upon payments. If Defendants timely make all payments, Plaintiff                agrees to                sign a Settlement and Release, releasing and discharging Defendants                from                all claims which were made or which could have been made in the above                entitled litigation. Upon completion of the agreed upon payments                Plaintiff                agrees to cause its attorney to sign a Stipulation and Motion for                Order of                Dismissal with Prejudice which will forever end the above entitled                litigation. |
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| 4. | The                parties understand and agree that more formal settlement documents                including the Settlement Agreement and Release will be signed by                the                parties with in a reasonable time. |
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