**Exhibit 10.1.1****LEASE AGREEMENT**     THIS LEASE AGREEMENT is made and entered into as of the date set forth below between**Robert V. Teague Trust and/or Assigns,** hereafter referred toas “Landlord” and **DAC TechnologyGroup International, Inc.,** hereafter collectively referred to as “Tenant”:*W I T N E S S E T H:*     1. LEASED PREMISES: In consideration of the rents, terms, provisions, and covenants of thisLease, Landlord hereby leases, lets and demises to Tenant the following described premises(referred to as “leased premises” or “premises”and containing approximately **102,175** square feet)situated **at 3700 Old Shackleford Road, Little Rock, Arkansas** (sometimes referred to as “thebuilding,” “the project” or “the premises”). The statement of square footage contained in thisLease is made for reference purposes only and is not a part of this agreement. Tenant states thatit is not relying on any Landlord representations relating to square foot measurements.     2. LEASE COMMENCEMENT: Subject to and upon the conditions set forth below, the term of thisLease shall commence on **November 15, 2006,** (the “commencement date”) and shall terminate **November14,2010 (48)** months thereafter. Upon one hundred and twenty (120) days prior written notice. Tenantshall have the option to renew this lease for one period of four (4) years.     3. RENT & RENT COMMENCEMENT: (a) Tenant agrees to pay, as an initial base rental during theterm of this Lease, the sum of **Nine Thousand Three HundredSixty-Six and 08/100**            **($9,366.08)** permonth, which amount shall be payable to Landlord at the address shown below on the first day ofeach month without abatement, deduction or setoff. Monthly installment shall be due and payable onor before the first day of each calendar month succeeding the commencement date during the demisedterm; provided, that if the commencement date should be a date other than the first day of acalendar month, the monthly rental set forth above shall be prorated to the end of that calendarmonth, and all succeeding installments of rent shall be payable on or before the first day of eachsucceeding calendar month during the demised term. Tenant shall pay, as additional rental, allother sums due under this Lease.     (b) The monthly rental installments provided hereinabove shall be increased annually by fivecents ($.05) per square foot according to the rent schedule below.     Year 1 $112,393 ($1.10/SF)Year 2 $117,501 ($1.15/SF)Year 3 3122,610 ($1.20/SF)Year 4 $127,719 ($1.25/SF)     First Option Period    Year 5 $132,828 ($1.30/SF)Year 6 $137,936 (S1.35/SF)Year 7 $143,045 (S1.40/SF)Year 5 $148,154 ($1.45/SF)     **(c) During the final three (3) months Year 8, if an acceptable lease renewal has not beenreached, Tenant shall have a first right of refusal to lease the premises. If Landlord receives anacceptable offer within the 3-month time period to lease from another party, Landlord must giveprompt notice to Tenant and Tenant shall have forty-eight (48) hours from such notice to match theoffer. Tenant’s first right to lease shall expire ten (10) days following the end of Year 4, or tendays following Year 8 if extended.**
 

 
**In addition, Tenant shall have the right of first offer to purchase the property throughoutthe term of the lease and any extensions. Should Landlord decide to place the property on themarket for sale, Tenant shall have the first right to purchase the property for forty-eight (48)hours after written notice from Landlord. Tenant’s right of first offer shall expire immediately atthe end of Year 8.**     (d) On the date of execution of this Lease by Tenant, there shall be due and payable byTenant a security deposit (“Security Deposit”) in an amount of Ten Thousand and NO/100 Dollars($10,000.00) to be held for the performance by Tenant of Tenant’s covenants and obligations underthis Lease, it being expressly understood that the deposit shall not be considered an advancepayment of rental or a measure of Landlord’s damage in case of default by Tenant. Upon theoccurrence of any event of default by Tenant or breach by Tenant of Tenant’s covenants under thisLease, Landlord may, from time to time, without prejudice to any other remedy, use the securitydeposit to the extent necessary to make good any arrears of rent and/or any damage, injury, expenseor liability caused to Landlord by the event of default or breach of covenant, any remainingbalance of the security deposit to be returned by Landlord to Tenant upon termination of thisLease. If Landlord so uses any portion of the Security Deposit, then it will restore the SecurityDeposit to its original amount within five (5) days after written demand from Landlord. Landlordwill not be required to keep the Security Deposit separate from its own funds and Tenant will notbe entitled to interest on the Security Deposit.     (e) All of the terms and provisions of the Lease will be effective as of the date of Leaseexecution with the exception of the obligation to pay rent. The obligation to pay rent shallcommence on the date (“Rent Commencement Date”) which is the earlier of the following dates: (a)the date on which Tenant opens the Premises for business with the public; or (b) no later thanJanuary 1, 2007. Tenant shall have access to the building upon Lease execution to begin moving andcomplete its improvements, but shall immediately be responsible for all utility costs.     (f) If any increase in the fire insurance premiums paid by Landlord for the building in whichTenant occupies space is caused by Tenant’s use of the leased premises, or if Tenant vacates theleased premises and causes an increase in such premiums, then Tenant shall pay as additional rentalthe amount of such increase to Landlord.     (g) Other remedies for nonpayment of rent notwithstanding, if the monthly rental payment isnot received by Landlord on or before the tenth (10th) day of the month for which rent is due, orif any other payment due Landlord by Tenant is not received by Landlord on or before the tenth dayof the month next following the month in which Tenant was invoiced, Landlord will incurunanticipated costs, the exact amount of which are impractical or extremely difficult to ascertain,and a service charge of ten percent (10%) of such past due amount shall become due and payable inaddition to such amounts owed under this Lease. Any installment of rent which is not paid on orbefore the tenth (10th) day of the month for which rent is due shall also bear interest at thehighest rate permitted by law from the due date until paid.     (h) Tenant shall not be responsible for payment of any real estate taxes or propertyinsurance, except if Tenant’s (1) improvements increase the taxes or (2) use increases insurancepremiums.     4. SIGNS: Tenant shall have the right to erect a sign in good taste only on the front face ofthe Tenant’s premises in the building, subject to all applicable laws, deed restrictions andregulations. The composition and location of such sign shall be: (a) in compliance with allmunicipal, city, and state codes, and (b) installed by a licensed contractor. No signs or otherobjects shall be erected which are attached to the roof of the building and no signs shall beattached to the building or canopy at right angles suspended by guy wires, but shall be attachedflush in a safe and secure manner. All such signs erected shall advertise Tenant’s business onlyand no revenue producing advertising shall be erected on the leased premises without specificwritten permission of Landlord. Tenant shall not paint any signs directly on the walls of thebuilding or otherwise deface, damage or overload the building. Tenant shall have the right to placean additional sign at the Old Shackleford entrance gate; provided, however, that the sign shall besubject to the approval of Landlord. No other signs (mobile or stationary) shall be displayed onthe leased premises
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without the prior written consent of Landlord. Tenant shall remove all signs at the termination ofthis Lease at Tenant’s sole risk and expense and shall in a workmanlike manner properly repair anydamage and close any holes caused by the removal of Tenant’s signs.     5. USAGE: Tenant warrants and represents to Landlord that the leased premises shall be usedand occupied only for the purposes of **office and warehouse** and no other purpose. Tenant shalloccupy the leased premises, conduct its business and control its agents, employees, invitees andvisitors in such a way as is lawful, reputable and will not create any nuisance or otherwiseinterfere with, annoy or disturb any other tenant in its normal business operations or Landlord inits management of the building. Tenant shall not commit, or suffer to be committed, any waste onthe leased premises.     6. INSURANCE: Tenant shall not permit the leased premises to be used in any way which would beextra hazardous on account of fire or otherwise which would in any way increase or render void thefire insurance on leasehold improvements or contents in the building belonging to other tenants inthe building. If at any time during the term of this Lease the State Board of Insurance or otherinsurance authority disallows any of Landlord’s sprinkler credits or imposes an additional penaltyor surcharge in Landlord’s insurance premiums because of Tenant’s original or subsequent placementor use of storage racks or bins, method of storage or nature of Tenant’s inventory or any other actof Tenant, Tenant agrees to pay as additional rental the increase (between fire walls) inLandlord’s insurance premiums. Tenant shall, during the entire term hereof, keep in full force andeffect a policy of public liability with respect to the leased premises, and the business operatedby Tenant and any assignees or subtenants of Tenant in the premises in which the limits of publicliability for personal and bodily injury shall be not less than $1,000,000 single limit and inwhich the property damage liability shall be not less than $100,000. The policy shall name bothLandlord and Tenant as insureds, and shall contain a clause that the insurer will not cancel orchange the insurance without first giving the Landlord thirty (30) days prior written notice. Theinsurance shall be carried with companies reasonably satisfactory to Landlord and a copy of thepolicy or a certificate of insurance shall be delivered to Landlord. Tenant acknowledges that it issolely responsible for maintaining insurance on its personal property, fixtures, improvements andalterations, now or hereinafter made to the leased premises or the building.     7. UTILITY SERVICE: Landlord shall provide the normal utility service connections into theleased premises. Tenant shall pay the cost of all utility services, including, but not limited to,initial connection charges, all charges for gas, water and electricity used on the leased premises,and for all electric light lamps or tubes. However, in a multi-occupancy building, Landlord mayprovide water to the leased premises, in which case Tenant agrees to pay to Landlord Tenant’s Shareof the cost of such water unless Tenant’s usage of the leased premises exceeds normal domesticwater consumption, in which event the cost shall be estimated as appropriate for such excessconsumption. Tenant shall pay all costs caused by Tenant introducing excessive pollutants or solidsother than ordinary human waste into the sanitary sewer system, including permits, fees and chargeslevied by any governmental subdivision for any such pollutants or solids. Tenant shall beresponsible for the installation and maintenance of any dilution tanks, holding tanks, settlingtanks, sewer sampling devices, sand traps, grease traps or similar devices as may be required byany governmental subdivision for Tenant’s use of the sanitary sewer system. If the leasedpremises are in a multi-occupancy building, Tenant shall pay all surcharges levied due to Tenant’suse of sanitary sewer or waste removal services insofar as such surcharges affect Landlord or othertenants in the building. Landlord” shall not be required to pay for any utility services, suppliesor upkeep in connection with the leased premises. Tenant’s share of utilities shall be determinedby a mutually acceptable electrical engineer or Landlord, at its option, may elect to separate theutilities.
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     8. REPAIRS AND MAINTENANCE: (a) Unless otherwise expressly provided herein, Landlord shallnot be required to make any improvements, replacement or repairs of any kind or character to theleased premises during the term of this Lease except such repairs as are set forth in thissubparagraph. Landlord shall maintain the lawn and other landscaping, exterior painting, the roof,foundation, parking areas, and the structural soundness of the exterior walls (excluding allwindows, window glass, plate glass and all doors) of the building in good repair and condition.Tenant shall repair and pay for any damage caused by the negligence or default of Tenant orTenant’s agents and employees. Tenant shall immediately give written notice to Landlord of the needfor repairs, which repairs shall be made by Landlord beginning not more than fifteen (15) daysafter written notice by Tenant. All requests for repairs or maintenance that are the responsibilityof Landlord pursuant to any provision of this Lease must be made in writing to Landlord at theaddress set forth below.     (b) Tenant shall, at its own cost and expense, maintain the interior of the leased premises ingood repair and condition, including overhead doors, dock levelers, and heating and interior fans(including all necessary replacements). Tenant shall take good care of all the property and itsfixtures. Should Tenant neglect to keep and maintain the leased premises, then Landlord shall havethe right, but not the obligation, to have the work done and the cost therefor shall be charged toTenant as additional rental which shall become payable by Tenant with the payment of the rentalnext due hereunder.     (c) Tenant shall not allow any damage to be committed on any portion of the leased premises,and at the termination of this Lease, by lapse of time or otherwise, Tenant shall deliver theleased premises to Landlord in good condition as existed at the commencement date or completiondate of this Lease, ordinary wear and tear excepted. The cost and expense of any repairs necessaryto restore the condition of the leased premises shall be borne by Tenant, and if Landlordundertakes to restore the leased premises it shall have a right of reimbursement against Tenant.     (d) Landlord shall not be liable to Tenant, except as expressly provided in this Lease, forany damage, interruption of Tenant’s business or inconvenience, and Tenant shall not be entitled toany abatement or reduction of rent by reason of any repairs, alterations or additions made byLandlord under this Lease.     9. COMPLIANCE WITH LAWS, RULES AND REGULATIONS: Tenant, at Tenant’s expense, shall complywith all laws, ordinances, orders, rules and regulations of state, federal, municipal or otheragencies or bodies having jurisdiction relating to the use, condition and occupancy of the leasedpremises. Tenant will comply with the rules of the building and/or project adopted by Landlordwhich are set forth on Exhibit A attached to this Lease and made a part hereof. Landlord shall havethe right at all times to change the rules and regulations of the building or to amend them in anyreasonable manner as may be deemed advisable for the safety, care and cleanliness, and for thepreservation of good order, of the leased premises. All changes and amendments in the rules andregulations of the building will be sent by Landlord to Tenant in writing and shall thereafter becarried out and observed by Tenant.     10. LANDLORD WORK: Landlord shall complete the work outlined in Exhibit “B.”     11. ALTERATIONS AND IMPROVEMENTS: Tenant shall be permitted to make alterations andphysical additions in or to the leased premises, specifically the proposed new office area, onlyupon written consent of Landlord, which shall not be unreasonably withheld. Tenant shall submitbuilding plans of the proposed office area and Landlord shall permit Tenant to maintain a breakarea, which shall include an electric stove. Any alterations, physical additions or improvements tothe leased premises made by Tenant shall at’ once become the property of Landlord and shall besurrendered to Landlord upon the termination of this Lease. Landlord, at its option, may requireTenant to remove any physical additions and/or repair any alterations in order to restore theleased premises to the condition existing at the time Tenant took possession, all costs of removaland/or alterations to be borne by Tenant. This clause shall not apply to moveable equipment orfurniture owned by Tenant which may be removed by Tenant at the end of
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the term of this Lease if Tenant is not then in default and if such equipment andfurniture is not then subject to any other rights, liens and interests of Landlord. Tenant furtheragrees to construct any alterations or physical additions in strict compliance with all applicablelaws, rules, regulations, codes, and ordinances now or hereafter in effect, including withoutlimitations, the Americans with Disabilities Act and lead-base paint requirements.     12. CONDEMNATION: (a) If, during the term (or any extension or renewal) of this Lease, all ora substantial part of the leased premises are taken for any public or quasi-public use under anygovernmental law, ordinance or regulation, or by right of eminent domain or by purchase in lieuthereof, and the taking would prevent or materially interfere with the use of the leased premisesfor the purpose for which they are then being used, this Lease shall terminate and the rent shallbe abated during the unexpired portion of this Lease effective on the date physical possession istaken by the condemning authority. Tenant shall have no claim to the condemnation award, less andexcept any separate award made directly to Tenant as compensation for the Tenant’sleasehold interest.     (b) In the event a portion of the leased premises shall be taken for anypublic or quasi-public use under any governmental law, ordinance or regulation, or by right ofeminent domain or by purchase in lieu thereof, and this Lease is not terminated as provided insubparagraph (a) above, Landlord may, at Landlord’s sole risk and expense, restore and reconstructthe building and other improvements on the leased premises to the extent necessary to make itreasonably tenantable. The rent payable under this Lease during the unexpired portion of the termshall be adjusted to such an extent as may be fair and reasonable under the circumstances. Tenantshall have no claim to the condemnation award, less and except any separate award made directly toTenant as compensation for the Tenant’s leasehold interest.     13. FIRE AND CASUALTY: (a) If the leased premises should be totally destroyed byfire or other casualty, or if the leased premises should be so damaged so that rebuilding cannotreasonably be completed within one hundred twenty (120) working days after the date of writtennotification by Tenant to Landlord of the destruction, this Lease shall terminate and the rentshall be abated for the unexpired portion of the Lease, effective as of the date set forth in thewritten notification, provided the Landlord’s lender does not elect to apply such proceeds to anyindebtedness secured by the Property.     (b) Provided the Landlord’s lender does not elect to apply such proceeds to anyindebtedness secured by the Property, if the leased premises should be partially damaged by fire orother casualty, and rebuilding or repairs can reasonably be completed within one hundred twenty(120) working days from the date of written notification by Tenant to Landlord of the destruction,this Lease shall not terminate, but Landlord may at its sole risk and expense proceed withreasonable diligence to rebuild or repair the building or other improvements to substantially thesame condition in which they existed prior to the damage. If the leased premises are to be rebuiltor repaired and are untenantable in whole or in part following the damage, and thedamage or destruction was not caused or contributed to by act or negligence of Tenant, its agents,employees, invitees or those for whom Tenant is responsible, the rent payable under this Leaseduring the period for which the leased premises are untenantableshall be adjusted to such anextent as may be fair and reasonable under the circumstances. In the event thatLandlord fails to complete substantially the necessary repairs or rebuilding within one hundredtwenty (120) working days from the date of written notification by Tenant to Landlord of thedestruction, Tenant may at its option terminate this Lease by delivering written notice oftermination to Landlord, whereupon all rights and obligations under this Lease shall cease to existas of the effective date of such termination.     14. PROPERTY INSURANCE: Landlord shall at all times during the term of thisLease maintain a policy or policies of insurance with the premiums paid in advance, issued by andbinding upon some solvent insurance company, insuring the building against all risk of directphysical loss in an amount equal to ninety percent’(90%) of the full replacement cost of thebuilding structure and its improvements as of the date of the loss; provided, that Landlord shallnot be obligated in any way or manner to insure any personal property (including, but not limitedto, any furniture, machinery, goods or supplies) of Tenant or which Tenant may have upon or withinthe leased premises or any fixtures installed by or paid for by
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Tenant upon or within the leased premises or any additional improvements or alterations whichTenant may construct on the leased premises.     15. WAIVER OF SUBROGATION: Anything in this Lease to the contrary notwithstanding,Landlord and Tenant hereby waive and release each other of and from any and all rights of recovery,claim, action or cause of action, against each other, their agents, officers and employees, for anyloss or damage that may occur to the leased premises, improvements to the building of which theleased premises are a part, or personal property (building contents) within the building, by reasonof fire or the elements regardless of cause or origin, including negligence of Landlord or Tenantand their agents, officers and employees. Because this paragraph will preclude the assignment ofany claim mentioned in it by way of subrogation or otherwise to an insurance company or any otherperson, each party to this Lease agrees immediately to give to each insurance company which hasissued to it policies of insurance covering all risk of direct physical loss, written notice of theterms of the mutual waivers contained in this paragraph, and to have the insurance policiesproperly endorsed, if necessary, to prevent the invalidation of the insurance coverages by reasonof the mutual waivers contained in this paragraph.     16. HOLD HARMLESS: Landlord and Landlord’s agents, employees, invitees and assigns shall notbe liable to Tenant’s employees, agents, invitees, licensees or visitors, or to any other person,for any injury to person or damage to property on or about the leased premises, caused by any othertenant of Landlord, caused by the building and improvements located on the leased premises, or byany other reason whatsoever, less and except any such injury or damage caused by Landlord’s grossnegligence or willful misconduct, or that of Landlord’s employees or agents. Tenant agrees toindemnify and hold harmless Landlord of and from any loss, damage, claim, attorney’s fees, expensesor claims arising out of any such damage or injury.     17. QUIET ENJOYMENT: Landlord warrants that it has full right to execute and toperform this Lease and to grant the estate demised and that Tenant, upon payment of the requiredrents and performing the terms, conditions, covenants and agreements contained in this Lease, shallpeaceably and quietly have, hold and enjoy the leased premises during the full term of this Leaseas well as any extension or renewal thereof. Landlord shall not be responsible for the acts oromissions of any other Tenant or third party that may interfere with Tenant’s use and enjoyment ofthe leased premises, nor shall Landlord have any responsibility for the personal security of anypersons on or about the premises, the building and/or project.     18. LANDLORD’S RIGHT OF ENTRY: Landlord shall have the right, at all reasonablehours, or as otherwise agreed in advance by the parties, to enter the leased premises for thefollowing reasons: inspection; cleaning or making repairs; making alterations or additions asLandlord may deem necessary or desirable; determining Tenant’s use of the leased premises, ordetermining if an act of default under this Lease has occurred.     19. ASSIGNMENT OR SUBLEASE: Landlord shall have the right to transfer and assign, in whole orin part, its rights and obligations in the building and property that are the subject of thisLease. Without Landlord’s prior written consent, which shall not be unreasonably withheld ordelayed, Tenant will neither assign this Lease in whole or in part nor sublease all or part of thePremises. If Tenant requests Landlord to consent to a specific assignment or sublease, Tenant willgive Landlord (i) the name and address of the proposed assignee or subtenant; (ii) a copy of theproposed assignment or sublease; (iii) reasonably satisfactory information about the nature,business and business history of the assignee or subtenant and its proposed use of the Premises;and (iv) banking, financial or other credit information, and references, about the proposedassignee or subtenant sufficient to enable the Landlord to determine the financial responsibilityand character of the proposed assignee or subtenant. Landlord’s consent to an assignment orsublease will not be effective until: a fully executed copy of the instrument of assignment orsublease has been delivered to the Landlord; in the case of an assignment, Landlord has received awritten instrument in which assignee has assumed and agreed to perform all Tenant’s obligationsin this Lease; and a Five Hundred Dollar ($500) transfer fee. Landlord’s consent to anAssignment or Sublease will not

 
release the Tenant from the payment and performance of its obligations in the Lease, but rather,Tenant and its assignee will be jointly and severally primarily liable for such payment andperformance.For purposes of this Lease, the following transactions will also constitute an assignmentwhich shall require the Landlord’s prior written consent: (a) Assignment by operation of law;  (b) An imposition (whether or not consensual) of a lien, mortgage or encumbranceupon Tenant’s interest in this Lease;  (c) An arrangement (including without limitationmanagement agreements, concessions, and licensees) that allows the use and occupancy of all or partof the Premises by anyone other than Tenant;  (d) A transfer of voting control of Tenant, if Tenantis a corporation.  (e) A transfer of more than 33 1/3% of the interest in Tenant,if Tenant is a partnership or a limited liability company.An assignment or sublease without Landlord’s prior written consent will be void at Landlord’soption. Landlord’s consent to an assignment or sublease will not waive the requirement of itsconsent to any subsequent assignment or sublease. If Tenant believes that Landlord has unreasonablywithheld its consent, Tenant’s sole remedy will be to seek a declaratory judgment that Landlord hasunreasonably withheld its consent in order of specific performance or mandatory injunction ofLandlord’s agreement to give its consent. Any collection directly by Landlord from the assignee orsubtenant shall not be construed to constitute a novation or a release of Tenant from the furtherperformance of its obligations under this Lease. Tenant agrees to reimburse Landlord for Landlord’sreasonable attorneys’ fees and costs incurred in connection with the processing and documentationof any request made pursuant to this paragraph. Notwithstanding the giving by Landlord of itsconsent to any assignment or sublease with respect to the premises, no such assignee or sub Tenantmay exercise any expansion option, right of first refusal option, or extension option under thisLease except in accordance with a separate written agreement entered into directly between suchassignee or sub Tenant and Landlord, and, absent Landlord’s written agreement to the contrary, alloption rights of Tenant, and all lease rights of Tenant created pursuant to the exercise of anyoption rights, with respect to any space so assigned or subleased, shall be extinguished.     21. UNIFORMCOMMERCIAL CODE: This Lease is intended as and constitutes a securityagreement within the meaning of the Uniform Commercial Code of the state in which the leasedpremises are situated and, Landlord, in addition to the rights prescribed in this Lease, shall haveall of the rights, titles, liens and interests in and to Tenant’s property now or hereafter locatedupon the leased premises which are granted a secured party, as that term is defined, under theUniform Commercial Code to secure the payment to Landlord of the various amounts provided in thisLease. Tenant will on request execute and deliver to Landlord a financing statement for the purposeof perfecting Landlord’s security interest under this Lease or Landlord may file this Lease or acopy thereof as a financing statement.

 
     22. DEFAULT BY TENANT: The following shall be deemed to be events of default byTenant under this Lease:     (a) Tenant shall fail to pay when due any installment of rent or any other payment requiredpursuant to this Lease;     (b) Tenant shall abandon any substantial portion of the leased premises;     (c) Tenant shall fail to comply with any term, provision or covenant of this Lease, other thanthe payment of rent, and the failure is not cured within thirty (30) days after written notice toTenant;     (d) Tenant shall file a petition or be adjudged bankrupt or insolvent under the federalBankruptcy Code, as amended, or any similar law or statute of the United States or any state; or areceiver or trustee shall be appointed for all or substantially all of the assets of Tenant; orTenant shall make a transfer in fraud of creditors or shall make an assignment for the benefit ofcreditors; or     (e) Tenant shall do or permit to be done any act which results in a lien being filed againstthe leased premises or the building and/or project of which the leased premises are a part.     (f) Tenant shall fail to abide by the specific laws and/or restrictions set forthby the city of Little Rock building code and/or inspector.     23. REMEDIES FOR TENANT’S DEFAULT: Upon the occurrence of any event of default set forth inthis Lease in addition to any other remedy available law, Landlord shall have the option to pursueany one or more of the following remedies without any notice or demand:     (a) Terminate this Lease, in which event Tenant shall immediately surrender the leasedpremises to Landlord, and if Tenant fails to surrender the leased premises, Landlord may, withoutprejudice to any other remedy which it may have for possession or arrearages in rent, enter uponand take possession of the leased premises, by picking or changing locks if necessary, and lockout, expel, or remove Tenant and any other person who may be occupying all or any part of theleased premises without being liable for prosecution of any claim for damages. Tenant agrees to payon demand the amount of loss and damage which Landlord may suffer by reason of the termination ofthe Lease under this subparagraph, whether through inability in reletting the leased premises onsatisfactory terms or otherwise.     (b) Enter upon and take possession of the leased premises, by picking or changing locks ifnecessary, and lock out, expel or remove Tenant and any other person who may be occupying all orany part of the leased premises without being liable for any claim for damages, and relet theleased premises on behalf of Tenant and receive directly the rent by reason of the reletting.Tenant agrees to pay Landlord on demand any deficiency that may arise by reason of any reletting ofthe leased premises; further, Tenant agrees to reimburse Landlord for any expenditures made by itfor remodeling or repairing in order to relet the leased premises and the costs incurred inreletting the same.     (c) Enter upon the leased premises, by picking or changing locks if necessary, without beingliable for prosecution of any claim for damages, and do whatever Tenant is obligated to do underthe terms of this Lease. Tenant agrees to reimburse Landlord on demand for any expenses whichLandlord may incur in effecting compliance with Tenant’s obligations under this Lease; further,Tenant agrees that Landlord shall not be liable for any damages resulting to Tenant from effectingcompliance with Tenant’s obligations under this subparagraph caused by the negligence of Landlordor otherwise.     (d) In addition to any of the remedies available in this Lease,Tenant shall be liable for and shall pay immediately upon demand, any unamortized leasing fee paidby Landlord to any broker in connection with this Lease and any unamortized Tenant buildoutperformed by Landlord.     24. WAIVER OF DEFAULT OR REMEDY: Failure of Landlord to declare an event ofdefault immediately upon its occurrence, or delay in taking any action in connection with an eventof default, shall not constitute a waiver of the default, but Landlord shall have the right todeclare the default at any time and take such action as is lawful or authorized underthis Lease. Pursuit of any one or more of the remedies set forth in paragraph 24 above shall notpreclude pursuit of any one or more of the other remedies provided elsewhere in this Lease orprovided by law or equity, nor shall pursuit of any remedy provided
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constitute forfeiture or waiver of any rent or damages accruing to Landlord by reason of theviolation of any of the terms, provisions or covenants of this Lease. Failure by Landlord toenforce one or more of the remedies provided upon an event of default shall not be deemed orconstrued to constitute a waiver of the default or of any other violation or breach of any of theterms, provisions and covenants contained in this Lease.     25. ACTS OF GOD: Landlord shall not be required to perform any covenant orobligation in this Lease, or be liable in damages to Tenant, so long as the performance ornon-performance of the covenant or obligation is delayed, caused by or prevented by an act of Godor force majeure.     26. ATTORNEY’S FEES: In the event Tenant defaults in the performanceof any of the terms, covenants, agreements or conditions contained in this Lease and Landlordplaces in the hands of an attorney the enforcement of all or any part of this Lease, the collectionof any rent due or to become due or recovery of the possession of the leased premises, Tenantagrees to pay Landlord reasonable attorney’s fees for the services of the attorney, whether suit isactually filed or not.     27. HOLDING OVER: In the event of holding over by Tenant after theexpiration or termination of this Lease, the hold over shall be as a tenant at will and all of theterms and provisions of this Lease shall be applicable during that period, except that Tenant shallpay Landlord as rental for the period of such hold over an amount equal to one and one-tenth (1.1)the rent which would have been payable by Tenant had the hold over period been a part of theoriginal term of this Lease. Tenant agrees to vacate and deliver the leased premises to Landlordupon Tenant’s receipt of notice from Landlord to vacate. The rental payable during the hold overperiod shall be payable to Landlord on demand. No holding over by Tenant, whether with or withoutconsent by Landlord, shall operate to extend this Lease except as otherwise expressly provided.     28. SUBORDINATION OF RIGHTS: Tenant accepts this Lease subject and subordinate toany recorded mortgage or deed of trust lien presently existing or hereafter created upon the leasedpremises or the building. Landlord is hereby irrevocably vested with full power and authority tosubordinate Tenant’s interest under this Lease to any mortgage or deed of trust lien hereafterplaced on the leased premises, and Tenant agrees upon demand to execute additional instrumentssubordinating this Lease as Landlord may require. If the interests of Landlord under this Leaseshall be transferred by reason of foreclosure or other proceedings for enforcement of any mortgageor deed of trust on the leased premises, Tenant shall be bound to the transferee (sometimes calledthe “Purchaser”), under the terms, covenants and conditions of this Lease for the balance of theterm remaining, and any extensions or renewals, with the same force and effect as if the Purchaserwere Landlord under this Lease, and, if requested by the Purchaser, Tenant agrees toattorn to the Purchaser, including the mortgagee under any such mortgage if it be the Purchaser, asits Landlord. All the rights and obligations of both parties outlined herein shall transfer to anynew owner, successor or assignee.     29. ESTOPPEL CERTIFICATES: Tenant agrees to furnish promptly, from time to time, upon requestof Landlord or Landlord’s mortgagee, a statement certifying, if applicable, that Tenant is inpossession of the leased premises; the leased premises are acceptable; the Lease is in full forceand effect; the Lease is unmodified; Tenant claims no present charge, lien, or claim of offsetagainst rent; the rent is paid for the current month, but is not prepaid for more than one monthand will not be prepaid for more than one month in advance; confirming that the Tenant’s leaseholdinterest is subordinate to Landlord’s mortgage, there is no existing default by reason of some actor omission by Landlord or Tenant; that no event exists which with the passage of time wouldconstitute an event of default by either party; an agreement to provide Landlord’s lender (orlenders) with at least thirty (30) days prior notice of any default and an opportunity of lender(or lenders) to cure such default and Landlord’s lender’s (or lenders’) consent to any assignmentor ‘sublease of all or any portion of the Premises; and such other matters as may be reasonablyrequired by Landlord or Landlord’s mortgagee.
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     30. SUCCESSORS: This Lease shall be binding upon and inure to the benefit ofLandlord and Tenant and their respective heirs, personal representatives, successors and assigns.It is hereby covenanted and agreed that should Landlord’s interest in the leasedpremises cease to exist for anyreason during the term of this Lease, then notwithstanding the happening of such event thisLease nevertheless shall remain unimpaired and in full force and effect and Tenant hereunder agreesto attorn to the then owner of the leased premises.     32. DEFINITIONS: The following definitions apply to the terms set forth below asused in this Lease:     (a) “Abandon” means the vacating of all or a substantial portion of the leasedpremises by Tenant, whether or not Tenant is in default of the rental payments due under thisLease.     (b) An “act of God” or “force majeure” is defined for purposes of thisLease as strikes, lockouts, sit-downs, material or labor restrictions by any governmentalauthority, unusual transportation delays, riots, floods, washouts, explosions, earthquakes, fire,storms, weather (including wet grounds or inclement weather which prevents construction), acts ofthe public enemy, wars, insurrections and any other cause not reasonably within the control ofLandlord and which by the exercise of due diligence Landlord is unable, wholly or in part, toprevent or overcome.     (c) The“commencement date” shall be the date set forth in paragraph 2. The“commencement date” shall constitute the commencement of this Lease for all purposes, whether ornot Tenant has actually taken possession.     (d) “Real property tax” means all school, city, state and county taxes and assessmentsincluding special district taxes or assessments.     (e) “Square feet” or “square foot” as used in this Lease includes the area contained withinthe space occupied by Tenant together with a common area percentage factor of Tenant’s spaceproportionate to the total building area.     33. MISCELLANEOUS: The captions appearing in this Lease are inserted only as amatter of convenience and in no way define, limit, construe or describe the scope or intentof such paragraph. If any provision of this Lease shall ever be held tobe invalid or unenforceable, such invalidity or unenforceability shall not affect any otherprovision of this Lease, and such other provisions shall continue in full force and effect.     34. NOTICE: (a) All rent and other payments required to be made by Tenant shall be payable toLandlord at the address set forth below.     (b) All payments required to be made by Landlord to Tenant shall be payable toTenant at the address set forth below, or at any other address within the United States as Tenantmay specify from time to time by written notice;     (c) Any notice or document required or permitted to be delivered by this Lease shall bedeemed to be delivered (whether or not actually received) two days after being deposited in theUnited States Mail, postage prepaid, certified mail, return receipt requested, addressed to theparties at the respective addresses set out below:
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          LANDLORD:Robert V. Teague Trust