# SUBLEASE AGREEMENT

THIS
SUBLEASE AGREEMENT (Sublease) dated as of October 20,
2004, is entered into by and between DELPHI AUTOMOTIVE SYSTEMS LLC, a
Delaware limited liability company (Sublandlord) and EnerDel,
Inc., a Delaware corporation (Subtenant)

# R E C I T A L S:

WHEREAS,
pursuant to that Lease of Industrial or Warehouse Facilities, dated as of June 22, 2001,
as amended by First Amendment to Lease of Industrial or Warehouse Facilities, dated June
24, 2002 (the Prime Lease) between Universal Tool and Engineering
Company, Inc. (the Prime Landlord) and Sublandlord (as
Tenant), a copy of the lease being attached hereto as Exhibit
A, Prime Landlord leased to Sublandlord certain premises consisting of
approximately 78,930 square feet in the building located at 8750 N. Hague Road,
Indianapolis, Indiana 46256, such premises being more particularly described in the Prime
Lease (the Premises); and

WHEREAS,
Sublandlord desires to sublease to Subtenant and Subtenant desires to sublease from
Sublandlord a portion of the Premises as described on Exhibit B
attached hereto, together with access to common areas and parking; and

NOW
THEREFORE,the parties agree as follows:

1.       
          SUBLEASE. Sublandlord subleases to Subtenant a portion of the
          Premises consisting of 56,219 square feet as shown on Exhibit
          B attached hereto and made a part hereof (the Sublet
          Premises), for battery design, development and engineering, general
          officeand for any other use not inconsistent with the Prime Lease. In
          addition to the Sublet Premises, Subtenant shall have the right to use, in
          common with Sublandlord, the common areas, the parking areas, driveways,
          walkways and other common facilities serving the Premises.

2.        TERM:

| | A.       
               The term of this Sublease (Sublease Term) shall commence on
               the date hereof, and expire on January 24, 2007or such earlier date upon
               which the Sublease Term expires or terminates pursuant to the provisions of this
               Sublease or pursuant to law.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B.       
               Sublandlord has no intention of extending the Prime Lease beyond the end of the
               Sublease Term. At expiration of the Sublease Term, Subtenant will reimburse
               Sublandlord for $487,129 which represents the portion of Additional Improvements
               (as defined in the Prime Lease) allocated to the Sublet Premises and which will
               then be owed to Prime Landlord by Sublandlord; except to the extent that such
               fees are waived by Prime Landlord. Subtenant shall have no right to extend the
               Sublease Term unless Sublandlord, in its sole discretion, elects to extend the
               term of the Prime Lease. If Sublandlord intends to extend the term of the Prime
               Lease, it shall notify Subtenant. If Subtenant does not notify Sublandlord that
               Subtenant elects to extend the Sublease Term for the period Sublandlord is
               extending the term of the Prime Lease, within ten (10) business days after
               Subtenant receives Sublandlords notice, Subtenant shall be deemed to have
               waived any right to extend the term of the Sublease.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3.        RENT:

| | A.       
               The Fixed Rent for the Sublease Term shall be Five Hundred Forty-Seven Thousand
               Six Hundred Forty-Two Dollars and 72/100 ($547,642.72) per annum and shall be
               payable monthly, in advance, on the first (1st) day of each calendar month, in
               equal monthly installments of Forty-Five Thousand Six Hundred Thirty-Six Dollars
               and 89/100 ($45,636.89).
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | B.       
               Subtenant shall pay the Fixed Rent in advance in equal monthly installments on
               the first day of each calendar month during the Term, provided that Subtenant
               shall pay the first installment of Fixed Rent when Subtenant executes this
               Sublease. For any partial calendar month during the Sublease Term, the Fixed
               Rent shall be apportioned based upon the number of days in the partial month.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | C.       
               As additional rent, Subtenant shall pay 75.25% of the cost of all utilities for
               the Premises including, but not limited to, the cost of water and power, gas,
               heating, lighting, air conditioning and ventilating for the Premises and all
               maintenance and janitorial expenses incurred by Sublandlord for the Premises.
               Within ten (10) days of the end of each month, Sublandlord shall deliver a
               statement to Subtenant detailing Subtenants portion of the maintenance and
               janitorial expenses and utilities; and Subtenant shall pay such statement within
               thirty (30) days of receipt from Sublandlord. Until December 31, 2004,
               maintenance and janitorial additional rent shall be Ten Thousand One Hundred
               Thirty-Four Dollars ($10,134.00) per month, prorated for October. Subtenant
               shall pay the cost of any separate metering or submetering necessary to satisfy
               any legal requirements, in which case the percentage set forth in this
               Subparagraph C shall be equitably adjusted. If Sublandlord intends to vacate its
               portion of the Premises, Sublandlord will notify Subtenant of the date of such
               vacating. Subtenant shall be solely responsible for one hundred percent (100%)
               of utilities thereafter and will take whatever actions are necessary to
               establish accounts directly with utility providers.
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | D.       
               All payments called for under this Sublease shall be made at Sublandlords
               address of Facilities Service Group, 5825 Delphi Drive, M/C 480-410-174, Attn:
               Real Estate Services or at such other address as Sublandlord may designate.
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4.       
          ACCESS TO SUBLET PREMISES. Sublandlord shall furnish Subtenant
          with an access card for each employee of Subtentant staffed at the Sublet
          Premises. Such access cards will allow the Subtenants employees access to
          each corridor entering the Sublet Premises and the common areas in the Premises.

5.       
          SUBORDINATION TO PRIME LEASE. This Sublease is subordinate to, and
          Subtenant accepts this Sublease subordinate to, the Prime Lease and the matters
          to which the Prime Lease is subordinate. This Sublease is also subordinate to,
          and Subtenant accepts this Sublease subordinate to, any amendments to the Prime
          Lease hereafter made between Prime Landlord and Sublandlord, provided such
          amendments do not extend, increase or otherwise alter Subtenants
          performance obligations or liability under the Sublease. Subtenant acknowledges
          that Sublandlord cannot convey to Subtenant any greater estate than Sublandlord
          has been granted pursuant to the Prime Lease.

Except
as otherwise provided herein, the provisions of the Prime Lease are incorporated herein by
reference with the same force and effect as if they were fully set forth herein (with each
reference to Tenant being deemed to refer to Subtenant, and each reference to
Landlord being deemed to refer to Sublandlord, except as otherwise
specifically provided herein. All obligations of Tenant under the Prime Lease with respect
to the Premises shall be construed to apply to Subtenant and Subtenant shall perform all
such obligations. Notwithstanding the foregoing, Sublandlord shall have no liability for
any failure of performance by the Landlord under the Prime Lease, provided that the
Sublandlord takes all commercially reasonable steps to cause the Landlord to comply with
its obligations under the Prime Lease.

6.       
          DAMAGE OR INJURY. The Sublandlord and Subtenant agree to defend,
          indemnify and hold harmless the other against all lawsuits and claims for
          liability arising out of the Prime Lease which result from the negligent or
          willful acts of the Sublandlord or Subtenant, as the case may be, its officers,
          agents, employees, servants or representatives.

7.       
          INSURANCE. Subtenant shall furnish to the Sublandlord and Prime
          Landlord before access is granted to the premises, a copy of a liability
          insurance policy, covering all known and unknown hazards (subject to standard
          exclusions), arising from Subtenants use and occupancy of the premises,
          including the acts or omissions of the Subtenant, its agents, suppliers,
          contractors employees or customers which satisfies the requirements of the Prime
          Lease and names Sublandlord as an additional insured. Said policy shall contain
          a provision whereby the policy may not be canceled except by mailing to the
          Sublandlord and Prime Landlord a notice of cancellation or modification of the
          policy at least thirty (30) days prior to cancellation or modification of the
          policy.

8.       
          SERVICES BY PRIME LANDLORD. Subtenant shall look only to
          Sublandlord for any services to be furnished to Subtenant in accordance with
          this Sublease and the Prime Lease. Sublandlord shall take all commercially
          reasonable steps to ensure that Subtenant receives any services which are the
          obligation of Prime Landlord to provide under the Prime Lease.

9.       
          ALTERATIONS. Subtenant shall not make any alterations, additions
          or improvements upon or to the Sublet Premises without the prior written consent
          of Sublandlord and Prime Landlord.

10.       
          ACCESS. At all reasonable hours and with prior notice, the Sublet
          Premises shall be open to Prime Landlord and Sublandlord, their agents and
          representatives for inspecting or for repairs, additions or alterations by
          either party.

11.       
          SUBTENANTS COVENANTS. Subtenant covenants with Sublandlord
          to sublease the Sublet Premises and to pay the rent therefor as aforesaid, that
          it will commit no waste, nor suffer the same to be committed thereon, nor injure
          nor misuse the same; and also that it shall not make alterations therein, nor
          use the same for any purposes but that hereinbefore authorized. Subtenant has
          inspected the Sublet Premises and accepts same in their present condition.

12.       
          REVISE/TERMINATE PRIME LEASE.The Sublandlord and Subtenant agree
          to work together to attempt to have the Prime Landlord agree to revise the Prime
          Lease, or terminate the Prime Lease, and enter into new leases such that the
          Sublandlord and Subtenant will each enter into separate leases for their
          respective portions of the Premises. In addition, Sublandlord and Subtenant
          shall cooperate in an effort to enter into separate agreements with Prime
          Landlord (or its affiliates) for the maintenance and janitorial services for
          their respective portions of the Premises as soon as practicable after the date
          of this Sublease. If such agreements are entered into, Subtenants
          obligation for payment of maintenance and janitorial costs under Section 3.C
          shall be eliminated.

13.       
          HAZARDOUS MATERIAL:

| | A.       
               For purposes of the Sublease, hazardous materials means any
               explosives, radioactive materials, petroleum products, hazardous wastes, or
               hazardous substances, including without limitation substances defined as
               hazardous substances in the Comprehensive Environmental
               Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section
               9601-9657; the Hazardous Materials Transportation Act of 1975, 49 U.S.C. Section
               1801-1812; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Section
               6901-6987; or any other federal, state or local statute, law, ordinance, code,
               rule, regulation, order or decree regulating, relating to or imposing liability
               or standards of conduct concerning hazardous materials, waste or substances now
               or at any time hereafter in effect (collectively, hazardous materials
               laws)
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| | B.       
               Except in accordance with applicable law, Subtenant shall not: (i) cause or
               permit the storage, use, generation or disposition of any hazardous materials
               in, on or about the Sublet Premises or the Premises by Subtenant, its agents,
               employees, contractors or invitees; (or) permit the Sublet Premises to be used
               or operated in a manner that may cause the Sublet Premises or the Premises to be
               contaminated by any hazardous materials in violation of any hazardous materials
               laws or result in the diminution of the value of the Sublet Premises or
               degradation of structural materials of the Sublet Premises. Subtenant shall
               immediately advise Sublandlord in writing of: (1) any and all enforcement,
               cleanup, remedial, removal or other governmental or regulatory actions
               instituted, completed or threatened pursuant to any hazardous materials laws
               relating to any hazardous materials affecting the Sublet Premises; and (2) all
               claims made or threatened by any third party against Subtenant, Sublandlord or
               the Sublet Premises relating to damage, contribution, cost recovery,
               compensation, loss or injury resulting from any hazardous materials on or about
               the Sublet Premises. Without Sublandlords prior written consent (which
               shall not be unreasonably denied or delayed), Subtenant shall not take any
               remedial action or enter into any agreements or settlements in response to the
               presence of any hazardous materials in, on or about the Sublet Premises
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | C.       
               Subtenant shall be solely responsible for and will defend, indemnify and hold
               Sublandlord, its agents and employees harmless from and against all claims,
               costs and liabilities, including attorneys fees and costs, arising out of
               or in connection with Subtenants breach of its obligations in this Section
               13. Subtenant will be solely responsible for and will defend, indemnify and hold
               Sublandlord, its agents and employees harmless from and against any and all
               claims, costs and liabilities, including attorneys fees and costs, arising
               out of or in connection with the removal, cleanup and restoration work and
               materials necessary to return the Sublet Premises and any other property of
               whatever nature located on the Premises to their condition existing prior to the
               default. Subtenants obligations under this Section 13 will survive the
               expiration or other termination of this Sublease.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

IN
WITNESS WHEREOF,the parties hereto have hereunto set their hands and seals as of this
20th day of October, 2004.

|Witness:_________________________ |  | SUBLANDLORD:DELPHI AUTOMOTIVE SYSTEMS LLCBY: /S/ John G. Blahnik
John G. BlahnikVice President,  Treasury,  Mergers,  Acquisitions & 
                                                                       New Markets
|--------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Witness:_________________________ |  | SUBTENANT:ENERDEL, INC.BY: /S/ Kevin P. Fitzgerald
Kevin P. FitzgeraldChief Executive Officer
|--------------------------------- |  | -----------------------------------------------------------------------------------------------------------

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# EXHIBIT A

# PRIME LEASE

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# EXHIBIT B

# SUBLET PREMISES