Document:

Employment Agreement

     

    Exhibit
      10.1

    
 

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (hereinafter “Agreement”) is entered into and becomes
      effective as of June 5, 2007 by and between Patriot Scientific Corporation
      (hereinafter “PTSC” or “Employer” or “Company”), and James Turley (hereinafter
“Mr. Turley” or “Employee”).

     

    RECITALS

     

    A. PTSC
      is
      an intellectual property licensing company that develops, markets and enables
      innovative proprietary technologies.

     

    B. PTSC
      is a
      Delaware corporation and is doing business in the State of
      California.

     

    C. Mr. Turley
      is currently a member of the Board of Directors of PTSC. Both PTSC and Mr.
      Turley desire that Mr. Turley be hired as the President and Chief Executive
      Officer of PTSC on a full-time basis and that said employment be pursuant to
      the
      terms of this written Agreement.

     

    IN
      CONSIDERATION of their respective promises and covenants contained herein,
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereto do hereby agree as
      follows:

     

    AGREEMENT

     

    1. Employment.
      PTSC
      hereby engages Employee to serve as its President and Chief Executive Officer,
      and Employee hereby accepts such engagement upon the terms and conditions set
      forth herein.

     

    2. Term.
      The
      term of this Agreement shall begin on June 5, 2007 above and shall remain
      in effect for one (1) year, unless terminated earlier pursuant to
      Section 8.

     

    3. Duties.
      Mr. Turley is employed to serve as PTSC’s President and Chief Executive
      Officer and shall perform such duties as are customarily performed by a person
      serving in that office. Mr. Turley will report to the Board of Directors.
      As part of Employee’s duties, Mr. Turley acknowledges and understands that:
      (a) Employee will devote his best knowledge and skill to the performance of
      his duties; (b) Employee shall devote his reasonable business time to the
      rendition of such services, subject to absences for customary vacations and
      for
      temporary illness, which time shall not be less than forty (40) hours each
      week;
      and (c) Employee will not engage in any other gainful occupation which
      requires his personal attention without prior consent of the Board of Directors,
      with the exception that Employee may personally trade in stock, bonds,
      securities, commodities or real estate investments for his own
      benefit.

     

    a. Six
      Month Performance Evaluation.
      PTSC
      shall provide Mr. Turley with feedback regarding his performance within six
      months of the effective date of this Agreement.

     

    
      
         

      

      
        Page
          1 of
          9

        
          

        

      

      
         

      

    

    b. Nine
      Month Performance Evaluation.
      PTSC
      shall provide Mr. Turley with additional feedback regarding his performance
      within nine months of the effective date of this Agreement.

     

    4. Personnel
      Policies and Procedures.
      PTSC
      shall have the authority to establish from time to time personnel policies
      and
      procedures to be followed by its employees. Employee agrees to comply with
      the
      policies and procedures of PTSC. To the extent any provisions in PTSC’s
      personnel policies and procedures differ with the terms of this Agreement,
      the
      terms of this Agreement shall apply.

     

    5. Compensation.

     

    a. Salary.
      During
      the term of this Agreement, Employee shall be paid a salary of Two Hundred
      and
      Twenty Five Thousand Dollars ($225,000) per year. Employer, in its sole
      discretion, may, but is not obligated to, provide additional compensation to
      Employee, consistent with Employer’s policies and procedures.

     

    b. Bonus.
      Mr. Turley is eligible to receive an annual merit bonus as determined in
      the sole discretion of the Board of Directors. 

     

    c. Stock
      Options.
      Mr. Turley shall also receive the following Stock Options as additional
      compensation. The Stock Options referenced below will be granted pursuant to,
      and will at all times be subject to, the terms of the Patriot Scientific
      Corporation 2003 Stock Option Plan (“Plan”) and the Stock Option Agreements
      pursuant to which they are granted.

     

    i. Company
      will provide Mr. Turley with incentive stock options (“ISO”) to purchase 400,000
      shares of the Company’s common stock. These ISOs shall vest in a manner such
      that the aggregate fair market value of the stock with respect to which the
      ISOs
      options are exercisable for the first time during any calendar year shall
      approximate, but not exceed, $100,000, as set forth in Exhibit ”A” to the
      Incentive Stock Option Agreement granting such options under the Plan. The
      strike price for such shares shall be the fair market value of the stock on
      the
      date of grant (i.e. the effective date of that Agreement).

     

    ii. Company
      will provide Mr. Turley with a non-qualified stock options (“NSO”) to purchase
      1,500,000 shares of the Company’s common stock. These NSOs shall vest based upon
      certain performance milestones as set forth in Exhibit ”A” to the
      Non-Qualified Stock Option Agreement granting such options under the Plan.
      The
      strike price for such shares shall be the fair market value of the stock on
      the
      date of grant (i.e. the effective date of that Agreement).

     

    6. Fringe
      Benefits.

     

    a. Travel
      Allowance.
      Company
      shall reimburse Employee for reasonable commuting expenses from his home to
      Patriot’s corporate offices for a period not to exceed six months.

     

    
      
         

      

      
        Page
          2 of
          9

        
          

        

      

      
         

      

    

    b. Lodging.
      Company
      shall reimburse Employee for the cost of lodging in the County of San Diego
      for
      up to six months in an amount that is to be preapproved by the Compensation
      Committee of the Board of Directors.

     

    c. Automobile
      Allowance.
      Company
      shall pay Employee up to eight hundred dollars ($800.00) per month as an
      automobile allowance during the term of this Agreement.

     

    d. Vacation.
      Employee shall be eligible to receive the standard vacation benefits generally
      available to similar employees of the Company, as may from time to time may
      be
      adopted by the Company.

     

    e. Other
      Benefits.
      Employee shall be eligible to participate in all current employee benefit plans
      or any other benefit plans established or made available by PTSC from time
      to
      time during the term of this Agreement to employees generally, subject to and
      on
      a basis consistent with the terms, conditions and overall administration of
      such
      plans and the written policies of PTSC, as modified by PTSC from time to time.
      Employee shall receive other benefits as determined by the Board of
      Directors.

     

    7. Business
      Expenses.
      PTSC
      shall reimburse Employee for reasonable and necessary expenses incurred by
      Employee in the ordinary course of business for PTSC, in accordance with PTSC’s
      policies and procedures. 

     

    8. Termination.
      This
      Agreement and the employment of Employee shall terminate prior to its expiration
      date under the following conditions:

     

    a. Upon
      receipt by Employee of written notice from PTSC that Employee’s employment is
      being terminated; or

     

    b. The
      death
      of Employee; or,

     

    c. The
      permanent disability of Employee (permanent disability shall exist when Employee
      suffers from a condition of mind or body that indefinitely prevents his further
      performance of his essential duties, with or without reasonable accommodation);
      or

     

    d. Upon
      thirty (30) days written notice by Employee that he is resigning his employment
      from PTSC; or

     

    e. Upon
      receipt by Employee of written notice from PTSC that Employee’s employment is
      being terminated for “good cause.” PTSC has “good cause” to terminate Employee’s
      employment if:

     

    i. Employee
      fails or refuses to faithfully and diligently perform the usual and customary
      duties of his employment, which failure or refusal is not cured within thirty
      (30) days after written notice thereof is given to Employee; or

     

    ii. Employee
      fails or refuses to comply with the policies, standards and/or rules of Employer
      which from time to time may be established, which failure or refusal is not
      cured within thirty (30) days after written notice thereof is given to Employee;
      or

     

    
      
         

      

      
        Page
          3 of
          9

        
          

        

      

      
         

      

    

    iii. Employee
      fails or refuses to act in accordance with any lawful direction or order of
      the
      Board of Directors; or 

     

    iv. It
      is
      determined by the Board of Directors that Employee has conducted himself in
      an
      unprofessional, unethical, illegal or fraudulent manner, or has acted in a
      manner detrimental to the reputation, character or standing of Employer;
      including, but not limited to, theft or misappropriation of Employer’s assets,
      engaging in unlawful discriminatory or harassing conduct, the filing of false
      expense or related reports, or being convicted of a felony; or

     

    v. Employee
      violates any material term or condition of this Agreement.

     

    9. Compensation
      Upon Termination.

     

    a. For
      Other Than Good Cause.
      In the
      event Employee receives notice from Employer that his employment is terminated
      for other than “good cause,” he shall receive his then current salary level for
      the remaining term of the Agreement provided that Employee signs a release
      of
      all claims against PTSC on a release form provided by PTSC to him at that
      time.

     

    b. For
      Good Cause.
      In the
      event Employee is terminated for good cause as defined in Section 8(e)
      above, he shall receive notice that his employment is terminated and shall
      receive two weeks’ pay at his then current wage level, even though the
      employment terminated at the time notice was provided to Employee. Employee
      is
      entitled to no other severance compensation when he is terminated for good
      cause
      as defined in Section 8(e) above.

     

    c. Death
      or Permanent Disability.
      In the
      event Employee dies or becomes permanently disabled as defined in this
      Agreement, PTSC’s obligations hereunder shall terminate after paying Employee
      any compensation owed through the last day he worked.

     

    d. Resignation.
      In the
      event Employer receives notification that Employee is resigning, Employee shall
      be paid for the remainder of the time he continues to be employed at PTSC,
      up to
      a maximum of thirty (30) days.

     

    10. Covenants
      and Representations.

     

    a. Confidential
      Information.
      By
      signing this Agreement, Employee acknowledges and agrees that during the course
      of Employee’s employment, Employer has disclosed and will disclose or make
      available to Employee confidential and proprietary information related to
      Employer’s business including, without limitation, trade secrets, business
      records, intellectual property licensing programs, licensing terms and
      conditions, strategic planning, business acquisition planning, research and
      development, business development, joint venture planning, forward planning,
      strategic initiatives, prospective patent portfolio information, prospective
      investor information, prospective joint venture information, marketing
      strategies and related data, financial information, targeted areas of
      concentration of business development, contracts, business systems, plans and
      projections whether or not patentable or entitled to trademark (the
“Confidential Information”), that such Confidential Information has been
      developed and will be developed through the expenditure by Employer of
      substantial time and money and that all such Confidential Information, except
      to
      the extent it is in the public domain, shall constitute valuable, special and
      unique assets of Employer and trade secrets protected under applicable law.
      Employee’s employment with Company creates in Employee a duty of trust and
      confidentiality to Company with respect to the Confidential Information.
      Accordingly, Employee agrees to use such Confidential Information only for
      the
      purpose of carrying out Employee’s duties with Employer and agrees that Employee
      will not, during the period of employment or at any time thereafter,
      misappropriate for Employee for others, disclose or in any way make available
      to
      others, directly or indirectly, any such Confidential Information. It is
      expressly agreed that upon termination of employment Employee shall promptly
      surrender to Employer any and all documents, equipment or other records in
      any
      media referencing or containing any Confidential Information including but
      not
      limited to the following: all equipment belonging to Employer and all documents
      relating to Employer’s business, including without limitation computers, keys,
      pagers, correspondence, computer disks, software, accounting or financial
      records, employee lists, documents relating to Employer’s employees, drawings,
      manuals, notes, notebooks, reports, flow charts, diagrams, designs, programs,
      proposals, or any other physical items or documents relating to Employer.
      Employee further agrees that he will not make or retain any unauthorized copies
      or other reproductions of such materials. If Employee does not promptly
      surrender the equipment and documents, Employee agrees that he shall be
      responsible for reimbursing Employer for all costs, including attorney’s fees,
      incurred by Employer in an attempt to recover said equipment and
      documents.

     

    
      
         

      

      
        Page
          4 of
          9

        
          

        

      

      
         

      

    

    b. Prohibited
      Solicitation of Employees.
      During
      Employee’s employment with Employer and for one year following the termination
      of employment for any reason, Employee agrees that Employee shall not, directly
      or indirectly, either for Employee or for any other person, firm or corporation,
      call on, solicit, induce or encourage any employee, consultant or independent
      contractor of Employer to become employed by any direct or indirect competitor
      of Employer or to terminate his, her or its relationship with Employer.

     

    c. Competition
      During Employment.
      In
      consideration of Employee’s access to the Confidential Information described in
      paragraph 10(a), Employee agrees that during Employee’s employment,
      Employee shall not directly or indirectly compete with Employer.

     

    11. Arbitration/Sole
      Remedy for Breach of Agreement.
      In the
      event of any dispute between PTSC and Employee concerning any aspect of the
      employment relationship, including any disputes relating to termination, all
      such disputes shall be resolved by binding arbitration before a single neutral
      arbitrator pursuant to the following terms. This provision shall supersede
      any
      prior arbitration agreement, policy or understanding between the parties. The
      parties intend to revoke any prior arbitration agreement.

     

    a. Claims
      Covered by the Agreement.
      Employee and Employer mutually consent to the resolution by final and binding
      arbitration of all claims or controversies (“claims”) that Employer may have
      against Employee or that Employee may have against Employer or against its
      officers, directors, partners, employees, agents, pension or benefit plans,
      administrators, or fiduciaries, franchisors, or any parent, subsidiary or
      affiliated company or corporation (collectively referred to as “PTSC”), relating
      to, resulting from, or in any way arising out of Employee’s employment
      relationship with PTSC and/or the termination of Employee’s employment
      relationship with PTSC, to the extent permitted by law. The claims covered
      by
      this Agreement include, but are not limited to, claims for wages or other
      compensation due; claims for breach of any contract or covenant (express or
      implied); tort claims; claims for discrimination and harassment (including,
      but
      not limited to, race, sex, religion, national origin, age, marital status or
      medical condition, disability, or sexual orientation); claims for benefits
      (except where an employee benefit or pension plan specifies that its claims
      procedure shall culminate in an arbitration procedure different from this one);
      claims for breach of any duties or obligations, including, but not limited
      to,
      claims for unfair competition, unauthorized use or disclosure of trade secrets
      or confidential information, including claims for injunctive and/or other
      equitable relief; and claims for violation of any public policy, federal, state
      or other governmental law, statute, regulation or ordinance, except claims
      excluded in the following section.

     

    b. Claims
      Not Covered by the Agreement.
      Claims
      Employee may have for workers’ compensation (excluding discrimination claims
      under workers’ compensation statutes) or unemployment compensation benefits are
      not covered by this Agreement.

     

    
      
         

      

      
        Page
          5 of
          9

        
          

        

      

      
         

      

    

    c. Required
      Notice of Claims and Statute of Limitations.
      Arbitration may be initiated by Employee by serving or mailing a written notice
      to the Chairman of the Board of Directors of PTSC. Arbitration may be initiated
      by PTSC by serving or mailing a written notice to Employee at his last known
      address. The notice shall identify and describe the nature of all claims
      asserted and the facts upon which such claims are based. The written notice
      shall be served or mailed within the applicable statute of limitations period
      set forth by federal or state law.

     

    d. Arbitration
      Procedures.

     

    i. After
      demand for arbitration has been made by serving written notice under the terms
      of Section 11(c) of this Agreement, the party demanding arbitration shall
      file a demand for arbitration with the office of Judicial Arbitration and
      Mediation Services (“JAMS”) located in San Diego, California. The
      arbitrator shall be selected from the JAMS panel and the arbitration shall
      be
      conducted pursuant to JAMS policies and procedures. All rules governing the
      arbitration shall be the rules as set forth by JAMS. If the dispute is
      employment-related, the dispute shall be governed by JAMS’s then current version
      of the national rules for the resolution of employment disputes. JAMS’s then
      applicable rules governing the arbitration may be obtained from JAMS’s website
      which currently is www.jamsadr.com. 

     

    ii. The
      arbitrator shall apply the substantive law (and the law of remedies, if
      applicable) of the state in which the claim arose, or federal law, or both,
      as
      applicable to the claim(s) asserted. The arbitrator shall have exclusive
      authority to resolve any dispute relating to the interpretation, applicability,
      enforceability or formation of this Agreement, including but not limited to
      any
      claim that all or any part of this Agreement is void or voidable.

     

    iii. Either
      party may file a motion for summary judgment with the arbitrator. The arbitrator
      is entitled to resolve some or all of the asserted claims through such a motion.
      The standards to be applied by the arbitrator in ruling on a motion for summary
      judgment shall be the applicable laws as specified in Section 11(d)(ii) of
      this Agreement.

     

    iv. Discovery
      shall be allowed and conducted pursuant to the then applicable arbitration
      rules
      of JAMS, provided that the parties shall be entitled to discovery sufficient
      to
      adequately arbitrate their claims and defenses. The arbitrator is authorized
      to
      rule on discovery motions brought under the applicable discovery
      rules.

     

    
      
         

      

      
        Page
          6 of
          9

        
          

        

      

      
         

      

    

    e. Application
      For Emergency Injunctive And/Or Other Equitable Relief.
      Claims
      by Employer or Employee for emergency injunctive and/or other equitable relief
      relating to unfair competition and/or the use and/or unauthorized disclosure
      of
      trade secrets or confidential information shall be submitted to JAMS for
      emergency treatment. The parties agree that the JAMS administrator may select
      a
      neutral hearing officer (subject to conflicts) to hear the emergency request
      only. The hearing officer should be experienced in considering requests for
      emergency injunctive and/or other equitable relief. The hearing officer shall
      conform his/her consideration and ruling with the applicable legal standards
      as
      if this matter were heard in a court of law in the applicable jurisdiction
      for
      such a dispute.

     

    f. Arbitration
      Decision.
      The
      arbitrator’s decision will be final and binding. The arbitrator shall issue a
      written arbitration decision revealing the essential findings and conclusions
      upon which the decision and/or award is based. A party’s right to appeal the
      decision is limited to grounds provided under applicable federal or state
      law.

     

    g. Place
      of Arbitration.
      The
      arbitration will be at a mutually convenient location that must be within 50
      miles of Employee’s last company employment location. If the parties cannot
      agree upon a location, then the arbitration will be held at JAMS’s office
      nearest to Employee’s last employment location.

     

    h. Representation,
      Fees and Costs.
      Each
      party may be represented by an attorney or other representative selected by
      the
      party. Each party shall be responsible for its own attorneys’ or
      representative’s fees. However, if any party prevails on a statutory claim that
      affords the prevailing party’s attorneys’ fees, or if there is a written
      agreement providing for fees, the arbitrator may award reasonable fees to the
      prevailing party. PTSC shall be responsible for the arbitrator’s fees and costs
      to the extent they exceed any fee or cost that Employee would be required to
      bear if the action were brought in court.

     

    i. Waiver
      Of Jury Trial/Exclusive Remedy.
      Employee and PTSC knowingly and voluntarily waive any constitutional right
      to
      have any dispute between them decided by a court of law and/or by a jury in
      court.

     

    12. Successors
      and Assigns.
      The
      rights and obligations of PTSC under this Agreement shall enure to the benefit
      of and shall be binding upon the successors and assigns of PTSC. Employee shall
      not be entitled to assign any of his rights or obligations under this
      Agreement.

     

    13. Governing
      Law.
      This
      Agreement shall be interpreted, construed, governed and enforced in accordance
      to the laws of the State of California.

     

    14. Amendments.
      No
      amendment or modification of the terms or conditions of this Agreement shall
      be
      valid unless in writing and signed by the parties hereto.

     

    15. Separate
      Terms.
      Each
      term, condition, covenant or provision of this Agreement shall be reviewed
      as
      separate and distinct, and in the event that any such term, covenant or
      provision shall be held by a court of competent jurisdiction to be invalid,
      the
      remaining provisions shall continue in full force and effect.

     

    
      
         

      

      
        Page
          7 of
          9

        
          

        

      

      
         

      

    

    16. Waiver.
      A
      waiver by either party of a breach of provision or provisions of this Agreement
      shall not constitute a general waiver, or prejudice the other party’s right
      otherwise to demand strict compliance with that provision or any other
      provisions in this Agreement.

     

    17. Notices.
      Any
      notices required or permitted to be given under this Agreement shall be
      sufficient, if in writing, sent by mail to his residence in the case of
      Employee, or hand delivered to Employee, or to its principal office in the
      case
      of PTSC.

     

    

     

    

     

    [Remainder
      of page intentionally left blank]

     

    
      
         

      

      
        Page
          8 of
          9

        
          

        

      

      
         

      

    

    18. Entire
      Agreement.
      Employee acknowledges receipt of this Agreement and agrees that this Agreement
      represents the entire Agreement with PTSC concerning the subject matter hereof,
      and supersedes any previous oral or written communications, representations,
      understandings or Agreements with PTSC or any agent thereof. Employee
      understands that no representative of PTSC has been authorized to enter into
      any
      Agreement or commitment with Employee, which is inconsistent in any way with
      the
      terms of this Agreement.

     

    IN
      WITNESS HEREOF, the parties have executed this Agreement as of the dates set
      forth below.

     

    

    
      	Dated:
              June 5, 2007	
              /s/
                James Turley

              James
                Turley

            

    

    

    

    Patriot
      Scientific Corporation

     

    

    
      	Dated:
              June 5, 2007	
              By:
                /s/
                David H. Pohl

                    
                David
                H. Pohl, Chairman of the Board

            

    

     

     

     

    Page
      9 of
      9<PAGE>
EXHIBIT 10.1

AIRPORT TOWER PLAZA OFFICE BUILDING LEASE

1. PARTIES. This Lease, dated, for reference purposes only, February 19, 2007,
is made by and between J.C. Brown Enterprises (herein called "Landlord") and
Sionix Corporation a Nevada Corporation (herein called "Tenant").

2. PREMISES. Landlord does hereby lease to Tenant and Tenant hereby leases from
Landlord that certain office space (herein called "Premises") described as Suite
306, 2082 Michelson Drive, Irvine, California 92612 said Premises being agreed,
for the purpose of this Lease to have an area of approximately 1,994 square feet
of that certain Building known as Airport Tower Plaza.

Said Lease is subject to the terms, covenants, and conditions herein set forth
and the Tenant covenants as a material part of the consideration for this Lease
to keep and perform each and all of said terms, covenants, and conditions by it
to be kept and performed and that this Lease is made upon the condition of said
performance.

3. TERM. The term of this Lease shall be two (2) years, commencing on the 1st
day of March 2007 and ending on the 28th day of February, 2009.

4. POSSESSION.

      4.a. If the Landlord, for any reason whatsoever, cannot deliver possession
of the said Premises to the Tenant at the commencement of the term hereof, this
Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for
any loss or damage resulting therefrom, nor shall the expiration date of the
above term be in any way extended, but in that event, all rent shall be abated
during the period between the commencement of said term and the time when
Landlord delivers possession.

      4.b. In the event that Landlord shall permit Tenant to occupy the Premises
prior to the commencement date of the term, such occupancy shall be subject to
all the provisions of this Lease. Said early possession shall not advance the
termination date hereinabove provided.

5. BASIC MONTHLY RENT.

      5.a. Tenant agrees to pay to Landlord as rental, without prior notice or
demand, for the Premises the sum of:

Four Thousand Six Hundred and no/100 ($4,600.00) Dollars subject to adjustment
as hereinafter provided), on or before the first day of the first full calendar
month of the term hereof and a like sum on or before the first day of each and
every successive calendar month thereafter during the term hereof, except that
the first month's rent shall be paid upon the execution hereof. Rent for any
period during the term hereof which is for less than one (1) month shall be a
prorated portion of the monthly installment herein, based upon a thirty (30) day
month. Said rental shall be paid to Landlord, without deduction or offset in
lawful money of the United States of America, which shall be legal tender at the
time of payment at the Office of the Building, or to such other person or at
such other place as Landlord may from time to time designate in writing.

      5.b. The monthly rental payable by Tenant shall be increased for each year
of the term of this Lease commencing with the beginning of the second Lease Year
by adjusting the Basic Monthly Rental reserved in Section 5.a. to reflect any
increase in the cost of living, which adjustment shall be determined as follows:

            (i) At the beginning of each Lease Year, the then most recently
published Consumer Price Index figure shall be determined and the monthly rental
payable for the succeeding Lease Year shall be the Basic Monthly Rental reserved
under Section 5.a. increased by the same percentage as the percentage, if any,
by which the then most, recently published Consumer Price Index figure shall
have increased over the Consumer Price Index figure for the month in which the
term of this Lease commenced.

            (ii) For the purposes of this Lease, the term "Consumer Price Index"
shall refer to the "Consumer Price Index for All Urban Consumers Los Angeles --
Anaheim -- Riverside Metropolitan Area (All items)" compiled by the U.S.
Department of Labor, Bureau of Labor Statistics, based on 1982 as 100.

            (iii) If the 1982 base of the Consumer Price Index should hereafter
be changed, then the new base shall be converted to the base and the base as so
converted shall be used. In the event that the Bureau shall cease to publish the
Consumer Price Index, then the successor or most nearly comparable index thereto
shall be used.

6. SECURITY DEPOSIT. Tenant has deposited with Landlord the sum of Four Thousand
Six Hundred and no/100* ($4,600.00) Dollars. Said sum shall be held by Landlord
as security for the faithful performance by Tenant of all the terms, covenants,
and conditions of this Lease to be kept and performed by Tenant during the term
hereof. If Tenant defaults with respect to any provision of this Lease,
including, but not limited to the provisions relating to the payment of rent,
Landlord may (but shall not be required to) use, apply or retain all or any part
of this security deposit for the payment of any rent or any other sum in
default, or for the payment of any amount which Landlord may spend or become
obligated to spend by reason of Tenant's default, or to compensate Landlord for
any other loss or damage which Landlord may suffer by reason of Tenant's
default. If any portion of said deposit is so used or applied, Tenant shall
within five (5) days after written demand therefore, deposit cash with Landlord
in an amount sufficient to restore the security deposit to its original amount
and Tenant's failure to do so shall be a material breach of this Lease. Landlord
shall not be required to keep this security deposit separate from its general
funds, and Tenant shall not be entitled to interest on such deposit. If Tenant
shall fully and faithfully perform every provision of this Lease to be performed
by it. the security deposit or any balance thereof shall he returned to Tenant
(or, at Landlord's option, to the last assignee of Tenant's interest hereunder)
at the expiration of the Lease term. in the event of termination of Landlord's
interest in this Lease, Landlord shall transfer said deposit to Landlord's
successor in interest. *Tenant to- receive credit for the $1,850.00 Security
Deposit for Suite 304.

7. OPERATING EXPENSE ADJUSTMENT.

      7.a. For the purpose of this Article 7, the following terms are defined as
follows:

            (i) Tenant's Percentage: That portion of the Building occupied by
Tenant divided by the total square footage of the Building available for
occupancy, which result is the following percentage: 6.5%.

            (ii) Direct Expenses Base: The amount of the annual Direct Expenses
which Landlord has included in the Basic Rent, which amount is $11.39 per square
foot, for a total of $ 22.711.66 per year.

            (iii) Direct Expenses: The term "Direct Expenses" shall include:

                  (1) All real and personal property taxes and assessments
imposed by any governmental authority or agency on the Building and the land on
which the Building is located (including a prorate portion of any taxes levied
on any common areas); any assessments levied in lieu of taxes; any
non-progressive tax on or measured by gross rentals received from the rental of
space in the Building; and any other costs levied or assessed by, or at the
direction of, any federal, state, or local government authority in connection
with the use or occupancy of the Premises or the parking facilities serving the
Premises; any tax on this transaction or any document to which Tenant is a party
creating or transferring an interest in the Premises, and any expenses,
including cost of attorneys or experts, reasonably incurred by Landlord in
seeking reduction by the taxing authority of the above-referenced taxes, less
tax refunds obtained as a result of an application for review thereof; but shall
not include any net income, franchise, capital stock, estate or inheritance
taxes.

                  (2) Operating costs consisting of costs incurred by Landlord
in maintaining and operating the Building, and the Building Land Lease exclusive
of costs required to be capitalized for federal income tax purposes, and
including (without limiting the generality of the foregoing) the following: cost
of utilities, supplies and insurance, cost of services of independent
contractors, managers and other suppliers, the fair rental value of the Building
office, cost of compensation (including employment taxes and fringe benefits) of
all persons who perform regular and recurring duties connected with the
management, operation, maintenance, and repair of the Building, its equipment,
parking facilities and the common areas, including, without limitation,
engineers, janitors, foremen, floor waxers, window washers, watchmen and
gardeners, but excluding persons performing services not uniformly available to
or performed for substantially all Building tenants.

      7.b. If Tenant's Percentage of the Direct Expenses paid or incurred by
Landlord for any calendar year exceeds the Direct Expenses Base included in
Tenant's rent, then Tenant shall pay such excess as additional rent. As soon as
possible after the beginning of each calendar year, Landlord shall give to
Tenant a statement of any additional rent payable by Tenant hereunder for the
previous year, which shall be due and payable upon receipt. In addition, for
each year after the first calendar year, or portion thereof, Tenant shall pay
its percentage of Landlord's estimate of the amount by which Direct Expenses for
that year shall exceed the Direct Expenses Base. This estimated amount shall be
divided into twelve equal monthly installments. Tenant shall pay to Landlord,
concurrently with the regular monthly rent payment next due following the
receipt of such statement, an amount equal to one monthly installment multiplied
by the number of months from January in the calendar year in which said
statement is submitted to the month of such payment, both months inclusive.
Subsequent installments shall be payable concurrently with the regular monthly
rent payments for the balance of that calendar year and shall continue until the
next calendar year's statement is rendered. If, in any calendar year, Tenant's
Percentage of actual Direct Expenses is less than the estimate for that year,
then upon receipt of Landlord's statements, any overpayment made by Tenant on
the monthly installment basis shall be credited towards the next monthly rent
falling due and the estimated monthly installments of Tenant's Percentage of
Direct Expenses shall be adjusted to reflect such lower Direct Expenses for the
most recent year.

      7.c. Even though the term has expired and Tenant has vacated the Premises,
when the final determination is made of Tenant's Percentage of Direct Expenses
for the year in which this Lease terminates, Tenant shall immediately pay any
increase due over the estimated expenses paid and, conversely, any overpayment
made in the event said expenses decrease shall be rebated by Landlord to Tenant.

8. USE. Tenant shall use the Premises for general office purposes and shall not
use or permit the Premises to be used for any other purpose without the prior
written consent of Landlord.

      Tenant shall not do or permit anything to be done in or about the Premises
nor bring or keep anything therein which will in any way increase the existing
rate of or affect any fire or other insurance upon the Building or any of its
contents, or cause cancellation of any insurance policy covering said Building
or any part thereof or any of its contents. Tenant shall not do or permit
anything to be done in or about the Premises which will in any way obstruct or
interfere with the rights of other tenants or occupants of the Building or
injure or annoy them or use or allow the Premises to be used for any improper,
immoral, unlawful or objectionable purpose, nor shall Tenant cause, maintain or
permit any nuisance in, on or about the Premises. Tenant shall not commit or
suffer to be committed any waste in or upon the Premises.

9. COMPLIANCE WITH LAW. Tenant shall not use the Premises or permit anything to
be done in or about the Premises which will in any way conflict with any law,
statute, ordinance or governmental rule or regulation now in force or which may
hereafter be enacted or promulgated. Tenant shall, at its sole cost and expense,
promptly comply with all laws, statutes, ordinances and governmental rules,
regulations or requirements now in force or which may hereafter be in force, and
with the requirements of any board of fire insurance underwriters or other
similar bodies now or hereafter constituted, relating to, or affecting the
condition, use or occupancy of the Premises, excluding structural changes not
related to or affected by Tenant's improvements or acts. The judgement of any
court of competent jurisdiction or the admission of Tenant in any action against
Tenant, whether Landlord be a party thereto or not, that Tenant has violated any
law, statute, ordinance or governmental rule, regulation or requirement, shall
be conclusive of that fact as between the Landlord and Tenant.

10. ALTERATIONS AND ADDITIONS. Tenant shall not make or suffer to be made any
alterations, additions or improvements to or of the Premises or any part thereof
without the written consent of Landlord first had and obtained and any
alterations, additions or improvements to or of said Premises, including, but
not limited to, wall covering, paneling and built-in cabinet work, but excepting
movable furniture and trade fixtures, shall on the expiration of the term become
a part of the realty and belong to the Landlord and shall be surrendered with
the Premises. In the event Landlord consents to the making of any alterations,
additions or improvements to the Premises by Tenant, the same shall be made by
Tenant at Tenant's sole cost and expense, and any contractor or person selected
by Tenant to make the same must first be approved of in writing by the Landlord.
Upon the expiration or sooner termination of the term hereof, Tenant shall, upon
written demand by Landlord, given at least thirty (30) days prior to the end of
the term, at Tenant's sole cost and expense, forthwith and with all due
diligence remove any alterations, additions, or improvements made by Tenant,
designated by Landlord to be removed, and Tenant shall, forthwith and with all
due diligence at its sole cost and expense, repair any damage to the Premises
caused by such removal.

11. REPAIRS.

      11.a. By taking possession of the Premises, Tenant shall he deemed to have
accepted the Premises as being in good, sanitary order, condition and repair.
Tenant shall, at Tenant's sole cost and expense, keep the Premises and every
part thereof in good condition and repair, damage thereto from causes beyond the
reasonable control of Tenant and ordinary wear and tear excepted. Tenant shall
upon the expiration or sooner termination of this Lease hereof surrender the
Premises to the Landlord in good condition, ordinary wear and tear and damage,
from causes beyond the reasonable control of Tenant excepted. Except as
specifically provided in an addendum, if any, to this Lease, Landlord shall have
no obligation whatsoever to alter, remodel, improve, repair, decorate or paint
the Premises or any part thereof and the parties hereto affirm that Landlord has
made no representations to Tenant respecting the condition of the Premises or
the Building except as specifically herein set forth.

      11.b. Notwithstanding the provisions of Article 11.a. hereinabove,
Landlord shall repair and maintain the structural portions of the Building,
including the basic plumbing, air conditioning, heating, and electrical systems,
installed or furnished by Landlord, unless such maintenance and repairs are
caused in part or in whole by the act, neglect, fault or omission of any duty by
the Tenant, its agents, servants, employees or invitees, in which case Tenant
shall pay to Landlord the reasonable cost of such maintenance and repairs,
Landlord shall not be liable for any failure to make any such repairs or to
perform any maintenance unless such failure shall persist for an unreasonable
time after written notice of the need of such repairs or maintenance is given to
Landlord by Tenant. Except as provided in Article 22 hereof, there shall be no
abatement of rent and no liability of Landlord by reason of any injury to or
interference with Tenant's business arising from the making of any repairs,
alterations or improvements in or to any portion of the Building or the Premises
or in or to fixtures, appurtenances and equipment therein. Tenant waives the
right to make repairs at Landlord's expense under any law, statute or ordinance
now or hereafter in effect.

12. LIENS. Tenant shall keep the Premises and the property in which the Premises
are situated free from any liens arising out of any work performed, materials
furnished or obligations incurred by Tenant. Landlord may require, at Landlord's
sole option, that Tenant shall provide to Landlord, at Tenant's sole cost and
expense, a lien and completion bond in an amount equal to one and one-half
(11/2) times any and all estimated cost of any improvements, additions, or
alterations in the Premises, to insure Landlord against any liability for
mechanics' and materialmen's liens and to insure completion of the work.

13. ASSIGNMENT AND SUBLETTING. Tenant shall not either voluntarily or by
operation of law, assign, transfer, mortgage, pledge, hypothecate or encumber
this Lease or any interest therein, and shall not sublet the said Premises or
any part thereof, or any right or privilege appurtenant thereto, or suffer any
other person (the employees, agents, servants and invitees of Tenant excepted)
to occupy or use the said Premises, or any portion thereof, without the written
consent of Landlord first had and obtained, which consent shall not be
unreasonably withheld, and a consent to one assignment, subletting, occupation
or use by any other person shall not be deemed to be a consent to any subsequent
assignment, subletting occupation or use by another person. Any such assignment
or subletting without such consent shall be void, and shall, at the option of
the Landlord, constitute a default under this Lease.

14. HOLD HARMLESS. Tenant shall indemnify and hold harmless Landlord against and
from any and all claims arising from Tenant's use of the Premises for the
conduct of its business or from any activity, work, or other thing done,
permitted or suffered by the Tenant in or about the Building, and shall further
indemnify and hold harmless Landlord against and from any and all claims arising
from any breach or default in the performance of any obligation on Tenant's part
to be performed under the terms of this Lease, or arising from any act or
negligence of the Tenant, or any officer, agent, employee, guest, or invitee of
Tenant, and from all and against all cost, attorney's fees, expenses and
liabilities incurred in or about any such claim or any action or proceeding
brought thereon, and, in any case, action or proceeding be brought against
Landlord by reason of any such claim, Tenant upon notice from Landlord shall
defend the same at Tenant's expense by counsel reasonably satisfactory to
Landlord. Tenant as a material part of the consideration to Landlord hereby
assumes all risk of damage to property or injury to persons, in, upon or about
the Premises, from any cause other than Landlord's negligence, and Tenant hereby
waives all claims in respect thereof against Landlord.

      Landlord or its agents shall not be liable for any damage to property
entrusted to employees of the Building, nor for loss or damage to any property
by theft or otherwise, nor for any injury to or damage to persons or property
resulting from fire, explosion, falling plaster, steam, gas, electricity, water
or rain which may leak from any part of the Building or from the pipes,
appliances or plumbing works therein or from the roof, street or subsurface or
from any other place resulting from dampness or any other cause whatsoever,
unless caused by or due to the negligence of Landlord, its agents, servants or
employees. Landlord or its agents shall not be liable for interference with the
light or other incorporeal hereditaments, loss of business by Tenant, nor shall
Landlord be liable for any latent defect in the Premises or in the Building.
Tenant shall give prompt notice to Landlord in case of fire or accidents in the
Premises or in the Building or of defects therein or in the fixtures or
equipment.

15. SUBROGATION. As long as their respective insurers so permit, Landlord and
Tenant hereby mutually waive their respective rights of recovery against each
other for any loss insured by fire-, extended coverage and other property
insurance policies existing for the benefit of the respective parties. Each
party shall obtain any special endorsements, if required by their insurer to
evidence compliance with the aforementioned waiver.

16. LIABILITY INSURANCE. Tenant shall, at Tenant's expense, obtain and keep in
force during the term of this Lease a policy of comprehensive public liability
insurance insuring Landlord and Tenant against any liability arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas
appurtenant thereto. The limit of said insurance shall not, however, limit the
liability of the Tenant hereunder. Tenant may carry said insurance under a
blanket policy providing, however, said insurance by Tenant shall have a
Landlord's protective liability endorsement attached thereto. If Tenant shall
fail to procure and maintain said insurance, Landlord may, but shall not be
required to, procure and maintain same, but at the expense of Tenant. Insurance
required hereunder, shall be in companies rated A+ AAA or better in "Best's
Insurance Guide". Tenant shall deliver to Landlord prior to occupancy of the
Premises copies of policies of liability insurance required herein or
certificates evidencing the existence and amounts of such insurance with loss
payable clauses satisfactory to Landlord. No policy shall be cancellable or
subject to reduction of coverage except after ten (10) days prior written notice
to Landlord.

17. SERVICES AND UTILITIES. Provided that Tenant is not in default hereunder,
Landlord agrees to furnish to the Premises during reasonable hours of generally
recognized business days, to be determined by Landlord at his sole descretion,
and subject to the rules and regulations of the Building of which the Premises
are a part, electricity for normal lighting and fractional horsepower office
machines, heat and air conditioning required in Landlord's judgment for the
comfortable use and occupation of the Premises, and janitorial service. Landlord
shall also maintain and keep lighted the common stairs, common entries, and
toilet rooms in the Building of which the Premises are a part. Landlord shall
not be liable for, and Tenant shall not be entitled to, any reduction of rental
by reason of Landlord's failure to furnish any of the foregoing when such
failure is caused by accident, breakage, repairs, strikes, lockouts or other
labor disturbances or labor disputes of any character, or by any other cause,
similar or dissimilar, beyond the reasonable control of Landlord. Landlord shall
not be liable under any circumstances for a loss of or injury to property,
however occuring, through or in connection with or incidental to failure to
furnish any of the foregoing. Wherever heat generating machines or equipment are
used in the Premises which affect the temperature otherwise maintained by the
air conditioning system, Landlord reserves the right to install supplementary
air conditioning units in the Premises and the cost thereof, including the cost
of installation, and the cost of operation and maintenance thereof shall be paid
by Tenant to Landlord upon demand by Landlord.

      Tenant will not, without written consent of Landlord, use any apparatus or
device in the Premises, including, but without limitation thereto, electronic
data processing machines, punch card machines, and machines using in excess of
120 volts, which will in any way increase the amount of electricity usually
furnished or supplied for the use of the Premises as general office space; nor
connect with electric current except through existing electrical outlets in the
Premises, any apparatus or device, for the purpose of using electric current. If
Tenant shall require water or electric current in excess of that usually
furnished or supplied for the use of the Premises as general office space,
Tenant shall first procure the written consent of Landlord, which Landlord may
refuse, to the use thereof and Landlord may cause a water meter or electrical
current meter to be installed in the Premises, so as to measure the amount of
water and electric current consumed for any such use. The cost of any such
meters and of installation, maintenance and repair thereof shall be paid for by
the Tenant and Tenant agrees to pay to Landlord promptly upon demand therefore
by Landlord for all such water and electric current consumed as shown by said
meters, at the rates charged for such services by the local public utility
furnishing the same, plus any additional expense incurred in keeping account of
the water and electric current so consumed. If a separate meter is not
installed, such excess cost for such water and electric current will be
established by an estimate made by a utility company or electrical engineer.

18. PROPERTY TAXES. Tenant shall pay, or cause to be paid, before delinquency,
any and all taxes levied or assessed and which become payable during the term
hereof upon all Tenant's leasehold improvements, equipment, furniture, fixtures
and personal property located in the Premises; except that which has been paid
for by Landlord, and is the standard of the Building. In the event any or all of
the Tenant's leasehold improvements, equipment, furniture, fixtures arid
personal property shall be assessed and taxed with the Building, Tenant shall
pay to Landlord its share of such taxes within ten (10) days after delivery to
Tenant by Landlord of a statement in writing setting forth the amount of such
taxes applicable to Tenant's property.

19. RULES AND REGULATIONS. Tenant shall faithfully observe and comply with the
rules and regulations that Landlord shall from time to time promulgate. Landlord
reserves the right from time to time to make all reasonable modifications to
said rules. The additions and modifications to those rules shall be binding upon
Tenant upon delivery of a copy of them to Tenant. Landlord shall not be
responsible to Tenant for the nonperformance of any said rules by any other
tenants or occupants.

20. HOLDING OVER. If Tenant remains in possession of the Premises or any part
thereof after the expiration of the term hereof, with the express written
consent of Landlord, such occupancy shall be a tenancy from month to month at a
rental in the amount of the last monthly rental, plus all other charges payable
hereunder, and upon all the terms hereof applicable to a month to month tenancy.

21. ENTRY BY LANDLORD. Landlord reserves and shall at any and all times have the
right to enter the Premises, inspect the same, supply janitorial service and any
other service to be provided by Landlord to Tenant hereunder, to submit said
Premises to prospective purchasers or tenants, to post notices of
non-responsibility, and to alter, improve or repair the Premises and any portion
of the Building of which the Premises are a part that Landlord may deem
necessary or desirable, without abatement of rent and may for that purpose erect
scaffolding and other necessary structures where reasonably required by the
character of the work to be performed, always providing that the entrance to the
Premises shall not be blocked thereby, and further providing that the business
of the Tenant shall not be interfered with unreasonably. Tenant hereby waives
any claim for damages or for any injury or inconvenience to or interference with
Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and
any other loss occasioned thereby. For each of the aforesaid purposes, Landlord
shall at all times have and retain a key with which to unlock all of the doors
in, upon and about the Premises, excluding Tenant's vaults, safes and files, and
Landlord shall have the right to use any and all means which Landlord may deem
proper to open said doors in an emergency, in order to obtain entry to the
Premises without liability to Tenant except for any failure to exercise due care
for Tenant's property. Any entry to the Premises obtained by Landlord by any of
said means, of otherwise shall not under any circumstances be construed or
deemed to be a forceable or unlawful entry into, or a detainer of, the Premises,
or an eviction of Tenant from the Premises or any portion thereof.

22. RECONSTRUCTION. In the event the Premises or the Building of which the
Premises are a part are damaged by fire or other perils covered by extended
coverage insurance, Landlord agrees to forthwith repair the same; and this Lease
shall remain in full force and effect, except that Tenant shall be entitled to a
proportionate reduction of the rent while such repairs are being made, such
proportionate reduction to be based upon the extent to which the making of such
repairs shall materially interfere with the business carried on by the Tenant in
the Premises. If the damage is due to the fault or neglect of Tenant or its
employees, there shall be no abatement of rent.

      In the event the Premises or the Building of which the Premises are a part
are damaged as a result of any cause other than the perils covered by fire and
extended coverage insurance, then Landlord shall forthwith repair the same,
provided the extent of the destruction be less than ten per cent (10%) of the
then full replacement cost of the Premises or the Building of which the Premises
are a part. In the event the destruction of the Premises or the Building is to
an extent greater than ten per cent (10%) of the full replacement cost, then
Landlord shall have the option; (1) to repair or restore such damage, this Lease
continuing in full force and effect, but the rent to be proportionately reduced
as hereinabove in this Article provided; or (2) give notice to Tenant at any
time within sixty (60) days after such damage terminating this Lease as of the
date specified in such notice, which date shall be no less than thirty (30) and
no more than sixty (60) days after the giving of such notice. In the event of
giving such notice, this Lease shall expire and all interest of the Tenant in
the Premises shall terminate on the date so specified in such notice and the
Rent, reduced by a proportionate amount, based upon the extent, if any, to which
such damage materially interfered with the business carried on by the Tenant in
the Premises, shall be paid up to date of said such termination.

      Notwithstanding anything to the contrary contained in this Article,
Landlord shall not have any obligation whatsoever to repair, reconstruct or
restore the Premises when the damage resulting from any casualty covered under
this Article occurs during the last twelve (12) months of the term of this Lease
or any extension thereof.

      Landlord shall not be required to repair any injury or damage by fire or
other cause, or to make any repairs or replacements of any panels, decoration,
office fixtures, railings, floor covering, partitions, or any other property
installed in the Premises by Tenant.

      The Tenant shall not be entitled to any compensation or damages from
Landlord for loss of the use of the whole or any part of the premises, Tenant's
personal property or any inconvenience or annoyance occasioned by such damage,
repair, reconstruction or restoration.

23. DEFAULT. The occurrence of any one or more of the following events shall
constitute a default and breach of this Lease by Tenant.

      23.a. The vacating or abandonment of the Premises by Tenant.

      23.b. The failure by Tenant to make any payment of rent or any other
payment required to be made by Tenant hereunder, as and when due, where such
failure shall continue for a period of three (3) days after written notice
thereof by Landlord to Tenant.

      23.c. The failure by Tenant to observe or perform any of the covenants,
conditions or provisions of this Lease to be observed or performed by the
Tenant, other than described in Article 23.b. above, where such failure shall
continue for a period of thirty (30) days after written notice thereof by
Landlord to Tenant; provided, however, that if the nature of Tenant's default is
such that more than thirty (30) days are reasonably required for its cure, then
Tenant shall not be deemed to be in default if Tenant commences such cure within
said thirty (30) day period and thereafter diligently prosecutes such cure to
completion.

      23.d. The making by Tenant of any general assignment or general
arrangement for the benefit of creditors; or the filing by or against Tenant of
a petition to have Tenant adjudged a bankrupt, or a petition or reorganization
or arrangement under any law relating to bankruptcy (unless, in the case of a
petition filed against Tenant, the same is dismissed within sixty [601 days); or
the appointment of a trustee or a receiver to take possession of substantially
all of Tenant's assets located at the Premises or of Tenant's interest in this
Lease, where possession is not restored to Tenant within thirty (30) days; or
the attachment, execution or other judicial seizure of substantially all of
Tenant's assets located at the Premises or of Tenant's interest in this Lease,
where such seizure is not discharged in thirty (30) days.

24. REMEDIES IN DEFAULT. In the event of any such material default or breach by
Tenant, Landlord may at any time thereafter, with or without notice or demand
and without limiting Landlord in the exercise of a right or remedy which
Landlord may have by reason of such default or breach:

      24.a. Terminate Tenant's right to possession of the Premises by any lawful
means, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Premises to Landlord. In such event Landlord shall
be entitled to recover from Tenant all damages incurred by Landlord by reason of
Tenant's default including, but not limited to, the cost of recovering
possession of the Premises; expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorney's fees, any real
estate commission actually paid; the worth at the time of award by the court
having jurisdiction thereof of the amount by which the unpaid rent for the
balance of the term after the time of such award exceeds the amount of such
rental loss for the same period that Tenant proves could be reasonably avoided;
that portion of the leasing commission paid by Landlord and applicable to the
unexpired term of this Lease. Unpaid installments of rent or other sums shall
bear interest from the date due at the rate of ten per cent (10%) per annum. In
the event Tenant shall have abandoned the Premises, Landlord shall have the
option of (a) taking possession of the Premises and recovering from Tenant the
amount specified in this paragraph, or (b) proceeding under the provisions of
the following Article 24.b.

      24.b. Maintain Tenant's right to possession, in which case this Lease
shall continue in effect whether or not Tenant shall have abandoned the
Premises. In such event Landlord shall be entitled to enforce all of Landlord's
rights and remedies under this Lease, including the right to recover the rent as
it becomes due hereunder.

      24.c. Pursue any other remedy now or hereafter available to Landlord under
the laws or judicial decision of the State in which the Premises are located.

25. EMINENT DOMAIN. If more than twenty-five per cent (25%) of the Premises
shall be taken or appropriated by any public or quasi-public authority under the
power of eminent domain, either party hereto shall have the right, at its
option, to terminate this Lease, and Landlord shall be entitled to any and all
income, rent, award, or any interest therein whatsoever which may he paid or
made in connection with such public. or quasi-public use or purpose, and Tenant
shall have no claim against Landlord for the value of any unexpired term of this
Lease. If either less than or more than twenty-five per cent (25%) of the
Premises is taken, and neither party elects to terminate as herein provided, the
rental thereafter to be paid shall be equitably reduced. If any part of the
Building other than the Premises may be so taken or appropriated, Landlord shall
have the right at its option to terminate this Lease and shall be entitled to
the entire award as above provided.

26. OFFSET STATEMENT. Tenant shall at any time and from time to time upon not
less than ten (10) days prior written notice from Landlord execute, acknowledge
and deliver to Landlord a statement in writing, (a) certifying that this Lease
is unmodified and in full force and effect (or, if modified, stating the nature
of such modification and certifying that this Lease as so modified, is in full
force arid effect), and the date to which the rental and other charges are paid
in advance, if any, and (b) ackowledging that there are not, to Tenant's
knowledge, any uncured defaults on the part of the Landlord hereunder, or
specifying such defaults if any are claimed. Any such statement may be relied
upon by any prospective purchaser or encumbrancer of all or any portion of the
real property of which the Premises are a part.

27. PARKING. Tenant shall have the right to use in common with other tenants or
occupants of the Building the parking facilities of the Building, if any,
subject to the monthly rates, rules and regulations, and any other charges of
Landlord for such parking facilities which may be established or altered by
Landlord at any time or from time to time during the term hereof.

28. AUTHORITY OF PARTIES.

      28.a. Corporate Authority. if Tenant is a corporation, each individual
executing this Lease on behalf of said corporation represents and warrants that
he is duly authorized to execute and deliver this Lease on behalf of said
corporation, in accordance with a duly adopted resolution of the board of
directors of said corporation or in accordance with the by-laws of said
corporation, and that this Lease is binding upon said corporation in accordance
with its terms.

      28.b. Limited Partnerships. If the Landlord herein is a limited
partnership, it is understood and agreed that any claims by Tenant on Landlord
shall be limited to the assets of the limited partnership, and furthermore,
Tenant expressly waives any and all rights to proceed against the individual
partners or the officers, directors or shareholders of any corporate partner,
except to the extent of their interest in said limited partnership.

29. GENERAL PROVISIONS.

      (i) Plats and Riders. Clauses, plats and riders, if any, signed by the
Landlord and the Tenant and endorsed on or affixed to this Lease are a part
hereof.

      (ii) Waiver. The waiver by Landlord of any term, covenant or condition
herein contained shall not be deemed to be a waiver of such term, covenant or
condition on any subsequent breach of the same or any other term, covenant or
condition herein contained. The subsequent acceptance of rent hereunder by
Landlord shall not be deemed to be a waiver of any preceding breach by Tenant of
any term, covenant or condition of this Lease, other than the failure of the
Tenant to pay the particular rental so accepted, regardless of Landlord's
knowledge of such preceding breach at the time of the acceptance of such rent.

      (iii) Notices. Ali notices and demands which may or are to be required or
permitted to be given by either party to the other hereunder shall he in
writing. All notices and demands by the Landlord to the Tenant shall be sent by
United States Mail, postage prepaid, addressed to the Tenant at the Premises, or
to such other place as Tenant may from time to time designate in a notice to the
Landlord. All notices and demands by the Tenant to the Landlord shall be sent by
United States Mail, postage prepaid, addressed to the Landlord at the Office of
the Building, or to such other person or place as the Landlord may from time to
time designate in a notice to the Tenant.

      (iv) Joint Obligation. If there be more than one Tenant the obligations
hereunder imposed upon Tenants shall be joint and several.

      (v) Marginal Headings. The marginal headings and Article titles to the
Articles of this Lease are not a part of this Lease and shall have no effect
upon the construction or interpretation of any part hereof.

      (vi) Time. Time is of the essence of this Lease and each and all of its
provisions in which performance is a factor.

      (vii) Successors and Assigns. The covenants and conditions herein
contained, subject to the provisions as to assignment, apply to and bind the
heirs, successors, executors, administrators and assigns of the parties hereto.

      (viii) Recordation. Neither Landlord nor Tenant shall record this Lease or
a short form memorandum hereof without the prior written consent of the other
party.

      (ix) Quiet Possession. Upon Tenant paying the rent reserved hereunder and
observing and performing all of the covenants, conditions and provisions on
Tenant's part to be observed and performed hereunder, Tenant shall have quiet
possession of the Premises for the entire term hereof, subject to all the
provisions of this Lease.

      (x) Late Charges. Tenant hereby acknowledges that late payment by Tenant
to Landlord of rent or other sums due hereunder will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be
extremely difficult to ascertain. Such costs include, but are not limited to,
processing and accounting charges, and late charges which may be imposed upon
Landlord by terms of any mortgage or trust deed covering the Premises.
Accordingly, if any installment of rent or of a sum due from Tenant shall not be
received by Landlord or Landlord's designee within ten ( 10) clays after written
notice that said amount is past due, then Tenant shall pay to Landlord a late
charge equal to ten per cent (10%) of such overdue amount. The parties hereby
agree that such late charges represent a fair and reasonable estimate of the
cost that Landlord will incur by reason of the fate payment by Tenant.
Acceptance of such late charges by the Landlord shall in no event constitute a
waiver of Tenant's default with respect to such overdue amount, nor prevent
Landlord from exercising any of the other rights and remedies granted hereunder.

      (xi) Prior Agreements. This Lease contains all of the agreements of the
parties hereto with respect to any matter covered or mentioned in this Lease,
and no prior agreements or understanding pertaining to any such matters shall be
effective for any purpose. No provision of this Lease may be amended or added to
except by an agreement in writing signed by the parties hereto or their
respective successors in interest This Lease shall not be effective or binding
on any party until fully executed by both parties hereto.

      (xii) Inability to Perform. This Lease and the obligations of the Tenant
hereunder shall not be affected or impaired because the Landlord is unable to
fulfill any of its obligations hereunder or is delayed in doing so, if such
inability or delay is caused by reason of strike, labor troubles, acts of God,
or any other cause beyond the reasonable control of the Landlord.

      (xiii) Attorneys' Fees. In the event of any action or proceeding brought
by either part against the other under this Lease the prevailing party shall be
entitled to recover all costs and expenses including the fees of its attorneys
in such action or proceeding in such amount as the court may adjudge reasonable
as attorneys' fees.

      (xiv) Sale of Premises by Landlord. In the event of any sale of the
Building, Landlord shall be and is hereby entirely freed and relieved of all
liability under any and all of its covenants and obligations contained in or
derived from this Lease arising out of any act, occurrency or omission occurring
after the consummation of such sale; and the purchaser, at such sale or any
subsequent sale of the Premises shall be deemed, without any further agreement
between the parties or their successors in interest or between the parties and
any such purchaser, to have assumed and agreed to carry out any and all of the
covenants and obligations of the Landlord under this Lease.

      (xv) Subordination, Attornment. Upon request of the Landlord, Tenant will
in writing subordinate its rights hereunder to the lien of any first mortgage,
or first deed of trust to any bank, insurance company or other lending
institution, now or hereafter in force against the land and Building of which
the Premises are a part, and upon any buildings hereafter placed upon the land
of which the Premises are a part, and to all advances made or hereafter to be
made upon the security thereof.

      In the event any proceedings era brought for foreclosure, or in the event
of the exercise of the power of sale under any mortgage or deed of trust made by
the Landlord covering the Premises, the Tenant shall attorn to the purchaser
upon any such foreclosure or sale and recognize such purchaser as the Landlord
under this Lease.

      The provisions of this Article to the contrary notwithstanding, and so
long as Tenant is not in default hereunder, this Lease shall remain in full
force and effect for the full term hereof.

      (xvi) Name. Tenant shall not use the name of the Building or of the
development in which the Building is situated for any purpose other than as an
address of the business to be conducted by the Tenant in the Premises.

      (xvii) Separability. Any provision of this Lease which shall prove to be
invalid, void or illegal shell in no way affect, impair or invalidate any other
provision hereof and such other provision shall remain in full force and effect.

      (xviii) Cumulative Remedies. No remedy or election hereunder shall be
deemed exclusive but shall, wherever possible, be cumulative with all other
remedies at law or in equity.

      (xix) Choice of Law, This Lease shall be governed by the laws of the State
in which the Premises are located.

      (xx) Signs and Auctions. Tenant shall not place any sign upon the Premises
or Building or conduct any auction thereon without Landlord's prior written
consent.

30. ADDITIONAL PROVISIONS

30.a. Tenant Improvements: Landlord will paint and recarpet the Suite; in colors
      selected by the Tenant.

31.a. Expansion of Premises: If at any time after Commencement Date, Landlord
      intends to offer space on the third floor which is adjacent to Suite 306
      for lease to third parties, Landlord shall first give written notice to
      Tenant of the location and area of such Available Premises ("Landlord's
      Lease Notice"). Tenant shall have five (5) business days after receipt of
      Landlord's Lease Notice" in which to accept the space on same terms and
      conditions as in this lease. Tenant shall accept such space, if at all,
      only by written notice to Landlord in which Tenant agrees to lease the
      Available Premises from the Landlord at the rate then being offered to
      Tenant by Landlord and upon the other terms and conditions contained in
      this lease. If Tenant accepts such space within the five (5) business day
      period, Landlord and Tenant shall immediately prepare and execute an
      amendment to this Lease incorporating the provisions of Landlord's Lease
      Notice.

b:    If Tenant fails to give Landlord notice of Tenant's acceptance of
      Landlord's Lease Notice within the five (5) business day period, then all
      rights of Tenant to lease the Available Premises under this provision
      shall terminate and Landlord shall have no further obligation to notify
      Tenant as to the availability of such space. Landlord shall thereafter
      have the unconditional right to lease the Available Premises to third
      parties without further obligation to Tenant.

c.    This right is personal as to the named Tenant, and may not be assigned.

The parties hereto have executed this Lease at the place and on the dates
specified immediately adjacent to their respective signatures.

If this Lease has been filled in, it has been prepared for submission to your
attorney for his approval. No representation or recommendation is made by the
real estate broker or its agents or employees as to the legal sufficiency, legal
effect, or tax consequences of this Lease or the transactions relating thereto.

                                             J.C. Brown Enterprises
                                             By /s/ John C. Brown
                                                --------------------------------
Address 2082 Michelson Drive, Suite 212      John C. Brown, Owner
        Irvine, Calif. 92612
                                             "LANDLORD"

                                             SIONIX CORPORATION
                                             By /s/ James J. Houtz
Address 2082 Michelson Drive, Suite 212         --------------------------------
        Irvine, CA 92612                     James J. Houtz, President & CEO/COO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00124-of-00352.parquet"}]]