Document:

Exhibit 10.1(b) 

  FORM OF STOCK OPTION AGREEMENT

  

     STOCK OPTION AGREEMENT (hereinafter called this "Agreement")
made as of this ____ day of _________
, 20__ between Universal Power Group, Inc., a
Texas corporation (hereinafter called the "Corporation"), and
______________
(hereinafter called the "Optionee"). 

     WHEREAS, in accordance with the Universal Power Group, Inc. 2006 Stock Option Plan (the "Plan"), a copy of which has been delivered to the Optionee, the
Corporation desires, in connection with the [employment of the Optionee] [the services provided by Optionee to the Corporation], to provide the Optionee with an opportunity to acquire shares of the Corporation's common stock, par value $.01 per
share (hereinafter called the "Common Stock"), on favorable terms and thereby increase his or her proprietary interest in the continued progress and success of the business of the Corporation; 

     NOW, THEREFORE,
in consideration of the premises, the mutual covenants herein set forth and other good and valuable consideration, the Corporation and the Optionee hereby agree as follows: 

     1. Confirmation of Grant of Option. 

          (a)
In accordance with the Plan, the Corporation hereby irrevocably grants to the
Optionee on _________, 20__ (the "Date of Grant") the right to purchase (hereinafter called the
"Option") an aggregate of up to ________ shares of Common Stock (the “Option Shares”), subject to adjustment as provided in Section 5 of the Plan. 

          (b) The Option [is] [is not] intended to constitute and qualify as “an incentive stock option” as such term is defined in Section 422(b) of the Internal Revenue Code of 1986, as
amended (the "Code"). [For ISO grants: The Optionee represents that he or she does not own stock possessing more than 10% of the combined voting power of all classes of stock
of the Corporation. The Option shall constitute a “non-qualified option” to the extent this option does not meet the criteria of an incentive stock option as defined in Section 422(b) of the Code or to the extent that the aggregate fair
market value of the Common Stock with respect to which incentive stock options are exercisable for the first time by the Optionee during any calendar year under all plans of the Corporation and its Subsidiaries (as defined below) exceeds
$100,000.] 

     2. Exercise
Price. The Optionee shall have the right
to purchase the Option Shares from the Corporation
at a price of $_____ per share, subject to adjustment as provided
in Section 5 of the Plan (the "Exercise Price"), such amount being the Fair Market
Value (as defined in the Plan) of a share of  Common Stock on the Date of Grant. 

     3. Exercise of Option. Alternative 1: Subject
to earlier termination or cancellation as provided in this Agreement or the Plan, the Option may be exercised from time to time, in whole or in 

part, on or prior to ________
__, 20__ (the "Expiration Date") in accordance with the following vesting and exercise schedule:

 [TO BE INSERTED] 

     Alternative 2: Subject to earlier termination or cancellation as provided
    in this Agreement or the Plan, the Option may be exercised from time to time,
    in whole or in part, on or prior to __________

  , ____ (the "Expiration Date") and
    shall only become exercisable on the date on which ____________ (the "Performance Goal"). If the Performance Goal does not occur on or prior to the Expiration Date, the Option shall become null and void. 

     The Option shall be exercised as provided in this Section 3 by notice and payment to the Corporation as provided in Sections 7, 11 and 12 hereof. 

     4. Term and Rights as Shareholder. Subject to earlier termination or cancellation as provided in this Agreement or the
Plan, the Option will be exercisable only (a) on or prior to the Expiration Date and (b) except as otherwise provided in Section 6 hereof, if the Optionee shall, at any time of exercise, be [an employee] [a director] of the Corporation or of a
Subsidiary or a Parent (as such terms are defined in the Plan). The holder of the Option will not have any right to dividends or any other rights of a shareholder with respect to a share of the Common Stock subject to the Option until such share
shall have been issued to him or her following exercise of the Option. Such issuance shall be evidenced by the appropriate entry on the books of the duly authorized transfer agent of the Corporation, provided that the date of issue shall not be
earlier than the Exercise Date (as hereinafter defined in Section 7(b) hereof) with respect to such share. 

     5. Non-transferability of Option. The Option will not be transferable otherwise than by will or by the laws of descent
and distribution, and the Option may be exercised during the lifetime of the Optionee only by him or her or, in the case of the Optionee's certified incompetency, his or her duly authorized legal representative(s). More particularly, but without
limiting the generality of the foregoing, the Option may not be assigned, transferred (except as provided in the preceding sentence) or otherwise disposed of, or pledged or hypothecated in any way (whether by operation of law or otherwise), and
shall not be subject to execution, attachment, or other process. Any assignment, transfer, pledge, hypothecation or other disposition of the Option attempted contrary to the provisions of this Agreement, or any levy of execution, attachment or other
process attempted upon the Option, will be null and void and without effect. Any attempt to make any such assignment, transfer, pledge, hypothecation or other disposition of the Option or any attempt to make any such levy of execution, attachment or
other process will cause the Option to terminate immediately upon the happening of any such event if the Corporation should, at any time, in its sole discretion, so elect by written notice to the Optionee (or to the person then entitled to exercise
the Option under the provisions of the Plan); provided, however, that any such 

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termination of the Option under the foregoing provisions of this Section 5 will not prejudice any rights or remedies which the Corporation or any Subsidiary or Parent may have under this Agreement or otherwise.

     [Alternative 1: 6. Exercise Upon Termination of Employment. 

          (a) If the Optionee ceases to be an employee of the Corporation or any Parent or Subsidiary because of his or her discharge for Cause (as defined below), the Option will forthwith terminate.
If, however, the Optionee for any other reason (other than death, disability or normal retirement) ceases to be such an employee, the Option may, subject to the provisions of Section 5 hereof, be exercised, to the extent the Optionee would have been
entitled under Section 3 hereof to exercise the Option on the date of such cessation of employment, at any time within 60 days after such cessation of employment, at the end of which period the Option will terminate unless terminated sooner as a
result of the Expiration Date occurring prior thereto. 

          (b) (i) If the reason for cessation of employment is disability within the meaning of Section 22(e)(3) of the Code or normal retirement, the Option may, subject to the provisions of Section 5
hereof, be exercised, to the extent the Optionee would have been entitled under Section 3 hereof to exercise the Option on the date of such cessation of employment, at any time within 12 months after such cessation of employment, at the end of which
period the Option will terminate unless terminated sooner as a result of the Expiration Date occurring prior thereto. 

               (ii) If the reason for cessation of employment is disability not within the meaning of Section 22(e)(3) of the Code, the Option may, subject to the provisions of Section 5 hereof, be exercised,
to the extent the Optionee would have been entitled under Section 3 hereof to exercise the Option on the date of such cessation of employment, at any time within six months after such cessation of employment, at the end of which period the Option
will terminate unless terminated sooner as a result of the Expiration Date occurring prior thereto[For ISO grants: ; provided, however, that, if the Optionee exercises the
Option more than three months after the cessation of employment, the shares issued upon any such exercise shall not be deemed to be shares of the Common Stock issued upon the exercise of an incentive stock option as such term is defined in Section
422 of the Code]. 

          (c) If the Optionee dies while he or she is employed by the Corporation or a Subsidiary or Parent or within the period after the termination of his or her employment during which he or she is
entitled to exercise the Option under the provisions of subsections (a) and (b) of this Section 6, the Option may, subject to the provisions of Section 5 hereof, be exercised, to the extent the Optionee would have been entitled under Section 3
hereof to exercise the Option on the date of such cessation of employment, by the estate of the Optionee, or the duly appointed representative, or beneficiary who acquires the Option by will or by the laws of descent and distribution, at any time
within one year after 

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the date of death, at the end of which period the Option will terminate unless terminated sooner as a result of the Expiration Date occurring prior thereto. 

          (d) In no event set forth in this Section 6 may the Option be exercised after the Expiration Date. 

          (e)
The term "Cause" shall have the definition set forth in an individual employment,
severance or other similar agreement between Optionee and the Corporation or
a Subsidiary or Parent, or if  there is no such agreement or no such definition
in any such agreement, Cause shall mean (i) the continued failure by the Optionee
substantially to perform his or her duties and obligations to the Corporation
or any of its affiliates, including  without limitation repeated refusal to follow
the reasonable directions of the Optionee's employer, knowing violation of law
in the course of performance of the duties of Optionee's employment with the
Corporation or any of its affiliates, repeated  absences from work without a
reasonable excuse, and intoxication with alcohol or illegal drugs while on the
Corporation's premises or that of any of the Corporation's affiliates during
regular business hours (other than any such failure resulting  from his or her
incapacity due to physical or mental illness); (ii) fraud or material dishonesty
against the Corporation or any of its Subsidiaries or its Parent; or (iii) a
conviction or plea of guilty or nolo contendre for the commission of a  felony
or a crime involving material dishonesty. Determination
of Cause shall be made by the Corporation in its sole discretion. 

          (f) The Option will not be affected by any change of duties or position of the Optionee so long as he or she continues to be an employee of the Corporation or any Subsidiary or Parent. If the
Optionee is granted a temporary leave of absence (including leave to enter the employ of a government, or any department, agency or instrumentality thereof), such leave of absence will be deemed a continuation of his or her employment by the
Corporation or any Subsidiary or Parent, but only if and so long as the employing corporation consents thereto. Retirement will be deemed to be a termination of employment for all purposes of this Agreement. 

          (g) If there shall have occurred a Change in Control with respect to the Corporation at any time while this Agreement is in effect, the Optionee shall have the right to exercise the Option in
whole or in part as to such number of additional Option Shares then subject to the Option and not then exercisable as the Corporation may, in its sole discretion, permit on the effective date of such sale, merger, consolidation or reorganization or
transfer.] 

     [Alternative 2: 6. Exercise Upon Termination of Relationship. 

          (a) Except as otherwise provided in this Section 6(a) below, if the Optionee ceases to be a director of the Corporation or any Parent or Subsidiary, the Option may, subject to the provisions of
Section 5 hereof, be exercised, to the extent the Optionee would have been entitled under Section 3 hereof

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to exercise the Option on the date of such termination, at any time within 90 days after such termination, at the end of which period the Option will terminate unless terminated sooner as a result of the Expiration Date
occurring prior thereto. Notwithstanding the foregoing, if Optionee is removed for cause by the shareholders of the Corporation or the Board, the Option shall terminate immediately upon his or her removal. 

          (b) If there shall have occurred a Change in Control with respect to the Corporation at any time while this Agreement is in effect, the Optionee shall have the right to exercise the Option in
whole or in part as to such number of additional Option Shares then subject to the Option and not then exercisable as the Corporation may, in its sole discretion, permit on the effective date of such sale, merger, consolidation or reorganization or
transfer.] 

     7. Method of Exercise of Option. 

          (a) Subject to the terms and conditions of this Agreement and the Plan, the Option will be exercisable by notice and payment to the Corporation in accordance with the procedure prescribed
herein. Each such notice, which may be in the form of Exhibit A hereto, shall: 

      (i)
    state the election to exercise the Option and the number of shares of the
    Common Stock in respect of which it is being exercised; 

     (ii) be signed by the person
    or persons entitled to exercise the Option, including the address to which
    share certificates are to be delivered, and, if the Option is being exercised
    by any person or persons other than the Optionee, be accompanied by proof,
    satisfactory to counsel for the Corporation, of the right of such person
    or persons to exercise the Option; 

     (iii)
    be accompanied by payment in full of the purchase price for the Option Shares covered by the notice in the form of a [Alternative 1: check, bank draft
    or money order in an amount equal to the aggregate purchase price of such Option Shares payable to the Corporation] [Alternative 2: check, bank draft or money order in an amount equal to the aggregate par value of the Option Shares covered by the notice and a fully recourse promissory note bearing interest at a rate no less than the “applicable federal rate” as defined in Section 1274 of the Code and otherwise in a form acceptable to the Corporation for the balance of the purchase price] [Alternative 3: any other manner permitted by the Plan and approved by the Corporation];  and

     (iv)
    make such arrangements, if requested by the Corporation and in form and substance
    satisfactory to counsel to the Corporation, with respect to any applicable
    withholding tax requirements. 

     (b) Upon receipt of
    a notice in accordance with subsection (a) of this Section 7 (such date and
    time of receipt being herein called the "Exercise Date"), the Option will
    be deemed to have been exercised with respect to such particular shares of
    the Common Stock if, and only if, the provisions of subsection (a) of this
    Section 7 and the provisions of Section 10 hereof shall have been complied
    with. Notwithstanding anything in this Agreement to the contrary, any notice
    of exercise given pursuant to the provisions of this Section 7 will be void
and of no effect if all the provisions of subsection (a) of this 

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Section 7 and the provisions of Section 10 shall not have been complied with. The certificate or certificates representing the shares of the Common Stock as to which the Option shall be exercised will be registered in the
name of the person or persons exercising the Option and will be delivered, as soon as practicable after the Exercise Date, to the person or persons exercising the Option at the place specified in the notice of exercise of the Option, but only upon
compliance with all of the provisions of this Agreement. 

          (c) In the event that the Optionee shall exercise the Option for less than the total number of Option Shares subject to the Option, this Agreement shall be deemed automatically amended to
reflect the reduced number of shares post-exercise, without the necessity of the Optionee surrendering this Agreement for issuance of a new agreement reflecting the reduced number of shares then still subject to the Option. To evidence such
amendment, the Corporation shall deliver to the Optionee (or such other permissible person executing the Option) a notice in the form of Exhibit B hereto. 

     8. Registration. 

          (a) [Alternative 1: The Optionee understands that the Option Shares have been registered under the Securities Act of
1933, as amended (the "Securities Act"), in a Registration Statement on Form S-8; however, the Option has not been registered under the Securities Act on the Date of Grant nor will it ever be.] [Alternative 2:
The Optionee understands that neither the Option nor the Option Shares have been registered under the Securities Act of 1933, as amended (the "Securities Act"), and may never be registered.] The Optionee
represents that the Option is [and the Option Shares are] being acquired by him or her for investment for his or her account and not with a view to, or in connection with, the sale or other distribution thereof. 

          (b) In the event that, at the Exercise Date, the Optionee is required by the Securities Act, if he or she desires to sell the Option Shares, to deliver a reoffer prospectus complying with
Section 10(a) of the Securities Act, the certificate or certificates for the Underlying Shares shall bear the following legend: 

  
    "The shares evidenced by this certificate have been
            registered on Form S-8 under the Securities Act of 1933, as amended  (the "Securities
            Act"); however, the holder is required under the Securities Act to use a
            reoffer prospectus to resell the shares. Accordingly,
            the shares may not be sold or transferred unless there is delivered an opinion
            of counsel to the Company that either (1) there is in effect a current prospectus
            meeting the requirements of Section 10(a) of the  Securities Act which is
            being or will be delivered to the purchaser or transferee at or prior to
            the time of delivery of such shares for sale or transfer, or (2) such shares
            may be sold without violating Section 5 of the Securities Act." 

  

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     9. Notices.
Each notice relating to this Agreement will be in writing and delivered in person
or by registered or certified mail or by express courier service to the proper
address. All notices to the Corporation shall be addressed to it at its principal
office, now at ____________________________
, Attention: Chief Executive Officer (or Executive Vice
President, if the Optionee is the Chief Executive Officer). All notices to the
Optionee or other person or persons then entitled to exercise the Option shall
be addressed to the Optionee or such other person or persons at the address set
forth below the Optionee's name following the Corporation's signature. Anyone
to whom a notice may be given under this Agreement
may designate a new address by notice to that effect given in accordance with
this Section 9. 

     10. Approval of Counsel. The exercise of the
  Option and the issuance and delivery of the Option Shares pursuant thereto shall be subject to approval by the Corporation's counsel of all legal matters in connection therewith, including compliance with the requirements of the Securities Act, or
  corresponding provision of future law, and the Exchange Act, or corresponding provision of future law, and the rules and regulations thereunder, and the requirements of any stock exchange upon which the Common Stock may then be listed or, if
  applicable, of The Nasdaq Stock Market, Inc. In furtherance thereof, such counsel may request that the Optionee or other permissible person exercising the Option deliver such investment representation or other documents as such counsel deems
  necessary or appropriate. 

     11. Reservation of Shares. The Corporation shall at all times during the term of the Option reserve and keep available
such number of shares of the class of stock then subject to the Option as will be sufficient to satisfy the requirements of this Agreement. 

     12. Disputes; Construction. Any dispute or disagreement which arises under, or as a result of, or in any way relates to,
the interpretation, construction or application of this Agreement will be resolved by the Committee. Any such resolution made hereunder shall be final, binding and conclusive for all purposes upon all persons. In the event of a difference between
the terms and conditions of this Agreement and those of the Plan, the terms and conditions of the Plan shall govern. Any capitalized term not defined herein shall have the meaning as defined in the Plan. 

     13. Limitation of Action. The Optionee agrees that every right of action accruing to him or her and arising out of, or
in connection with, this Agreement against the Corporation will, irrespective of the place where an action may be brought, cease and be barred by the expiration of three years from the date of the act or omission in respect of which such right of
action arises. 

     14. Benefits of Agreement. This Agreement will inure to the benefit of, and be binding upon, each successor and assign
of the Corporation. All obligations imposed upon the Optionee and all rights granted to the Corporation under this Agreement will be binding upon the Optionee's heirs, legal representatives and successors. 

7

     15. Governing Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas
without giving effect to the conflict of laws principles thereof. 

8

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the day, month and year first above written.

	 	UNIVERSAL POWER GROUP, INC.
	 	 
	 	By:	     

	 	 	      
	 	Name: 
	 	Title: 
	 	 
	 	 
	 	 
	 	OPTIONEE:
	 	 
	 	

	 	 
	 	Name (Print): 	

	 	Address: 	

	 	 	

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  EXHIBIT A

      ELECTION TO PURCHASE

  

      To Universal Power Group, Inc.:

  	 	
	 
	 	
	 
	 	Attention: Chief Executive Officer

       The
      undersigned hereby irrevocable elects to exercise the foregoing Option
      to purchase _____
    shares of the Common Stock issuable upon the exercise of the Option and requests
  that a certificate for such shares shall be issued in the name of 

     

	

	
      (Name) 
    
	 
	

	
      (Address)
    
	 
	

	
      (Taxpayer Social Security Number)
    
	 
	and be delivered to 	

	
      (Name)
    

	at 	

	
      (Address) 
    

Dated: ___________
, ____

Name of holder of Option:

	

	
      (please print) 
    

10

	 
	 
	

	
        (Address) 
    
	 
	

	
      (Signature) 
    

	
      Note: 
      
	 
		
The above signature must correspond with the name as written upon the face of the 
	
	 

		 
		
Option in every particular, without alteration or enlargement or any change whatever. 
	

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  EXHIBIT B

   

    NOTICE AS TO PARTIAL EXERCISE

    BY 

    _____________________ 

  

	
      To: 
      
	   

		
           Date: 
      

	
		   

		
	
		  
	
	 

		
      
        (Address) 
      	 

	

     WHEREAS, you
are the named Optionee in a Stock Option Agreement dated as of ________________
to purchase
________
shares of the Common Stock and have exercised the Option
as to 

_______ shares; 

     PLEASE TAKE NOTICE that the Stock Option Agreement is, by its terms,
automatically amended so it now covers only shares. 

	 	Universal Power Group, Inc.
	 	 
	 	By:	

	 	 	 
	 	 	

	 	 	(Title) 

12EX-10.2

EMPLOYMENT AGREEMENT 

     In consideration of the employment, or continued employment, of Randy Hardin (hereinafter referred to as "Employee") by  Universal Power Group, Inc., a Texas corporation  (hereinafter
referred to as "Company") and the attendant benefits to the Employee as a result thereof, Company and Employee agree as follows: 

          1.     Definitions. For purposes of this Agreement, the following definitions shall apply: 

	 	(a) "Inventions" shall mean: 
	 	 
	 	 	 (1) All inventions, improvements, modifications, and enhancements, whether or not patented, made by Employee during Employee's employment by the Company, and 
	 	 	 
	 	 	 (2) All inventions, improvements, modifications and enhancements made by Employee, during a period of one year after any suspension or termination of Employee's employment by the Company, which relate, directly or indirectly, to the past, present or future business of the Company. 
	 	 	 
	 	 (b) "Work Product" shall mean all documentation, software, creative works, know-how and information created, in whole or in part, by Employee during Employee's employment by the Company, whether or not copyrightable or otherwise is protected. 
	 	 
	 	 (c) "Trade Secrets" shall mean all documentation, software, know-how and information relating to the past, present or future business of the Company or any plans therefore, or relating to the past, present or future business of a third party or plans therefore that are disclosed to the Company, which the Company does not disclose to third parties without restrictions on use or further disclosure. 

          2.     Employment.  The Company hereby employs Employee and Employee hereby accepts employment with the Company and agrees to serve the
Company in the capacities hereinafter set forth and such other capacities as determined by the Company’s Board of Directors (the “Board”), for the term and compensation, and upon and subject to the terms and conditions as hereinafter
set forth. 

          3.1     Capacities.  Employee shall serve in the capacities and shall have such responsibilities and duties as are set forth in Exhibit A
attached hereto and incorporated herein by reference; provided, however, that Employee shall perform and discharge such other or further duties as may be assigned to Employee from time to time by the Board. 

          3.2     Full-time Nature. Employee agrees that during and throughout the term of this Agreement, Employee will be a full-time employee of
the Company and member of its Board of Directors and devote such time and energies as are reasonably necessary or may reasonably be required to execute, discharge and perform the duties and responsibilities incumbent upon Employee as specifically
delineated herein or by reason of the nature of employment of Employee. The Company, in its sole discretion, shall provide Employee an office, staff, facilities and services that are suitable to the position and appropriate for the performance of
the Employee’s duties. 

          4.1     Amount. As consideration for the services of Employee rendered or to be rendered to the Company in the capacities herein above
set forth, or in such other or future capacities as may be assigned to Employee by the Board, Employee shall be compensated by the Company as provided in Exhibit A attached hereto and incorporated herein for all purposes. The Company shall reimburse
Employee for all 

EMPLOYMENT AGREEMENT

Randy Hardin 

Page 1 of 7 

reasonable accountable expenses incurred in the performance of Employee’s duties and responsibilities, e.g. travel, entertainment, etc. for the Company. Employee will be reimbursed upon submission of an itemized
account of such expenditures with receipts where practicable. 

          4.2     Payment. The Company and Employee agree that the compensation provided for herein shall be payable in accordance with the
Company's customary payroll policies and provided further that the compensation provided for herein may be increased from time to time at the discretion of the Board. 

          4.3     Other Compensation. Employee shall receive such other remuneration and benefits as determined by the Board. 

          5.1     Term. The term of this Agreement shall be effective as of the jnitial public offering of the Company (hereinafter referred to as
the “Commencement Date”), and shall terminate December 31, 2009 (“Initial Term”) unless sooner terminated by the following events: 

          (i)     Employee's death; or, 

          (ii)     The Company or Employee shall terminate this Agreement as hereinafter provided. 

At the expiration of the Initial Term, Employee’s employment by the Company shall continue on a month-to-month basis and shall otherwise be subject to all of the terms and conditions of this Agreement.

          5.2     Act of Breach. An "Act of Breach,” as that term is used herein, shall be deemed to mean and consist of any one (1) or more of
the following: 

	          (i) 	Employee's fraud, dishonesty or gross dereliction in the performance of Employee's obligations hereunder; or, 
	 	 
	          (ii) 	Employee's failure to perform and execute any of Employee's duties hereunder or those duties as may reasonably be assigned to him by the Board after receiving written notice of such failure and Employee does not cure such failure within 30 days thereafter; or 
	 	 
	          (iii) 	Employee's breach of any of the fiduciary obligations inherent in and resulting from the employment relationship established by this Agreement; or, 
	 	 
	          (iv) 	Employee's failure to observe or obey any of Employee's covenants or agreements hereunder, after receiving written notice of such failure and Employee does not cure such failure within 30 days thereafter. 

          5.3     Termination for Cause, Illness or Incapacity. The Company may at any time after the Commencement
Date, by giving to Employee thirty (30) days' prior written notice, terminate this Agreement upon the Company's making a good faith determination (i) that Employee has committed an Act of Breach or, (ii) that Employee has become so physically and/or
mentally impaired or incapacitated as to preclude or impair Employee's ability to act in capacities and discharge the duties and obligations set forth herein.

          5.4     Severance Compensation.  In the event a third party purchases the Company’s stock or
substantially all of its assets or business, the Company may terminate this Agreement without cause by giving the Employee thirty day’s (30) prior written notice. In this event the Company shall pay the Employee (i) a lump sum severance pay
equal to twelve (12) months of Employee’s then monthly salary, plus (ii) twelve (12) months of Cobra insurance premiums for Employee’s then existing, health and major 

EMPLOYMENT AGREEMENT

Randy Hardin 

Page 2 of 7 

medical insurance coverage for Employee and his family, plus (iii) incentive bonus for that calendar year as so provided for in Exhibit A hereto (collectively “severance compensation”). In addition, Employee
shall be entitled to such severance compensation from the Company as outlined herein, in the event his employment is terminated by reason of (i) the death, illness or incapacity of the Employee as defined in this Agreement; (ii) the termination of
the Employee’s employment by the Company for any reason other than an Act of Breach; or (iii) the termination of the Employee’s employment by the Employee because of a substantial breach of this Agreement by the Company as provided in
section 5.6 hereof. The Employee may designate in writing the beneficiary of such severance compensation in the event of his death, otherwise, all such payments shall be paid to the duly appointed representative of his Estate. In the event
Employee’s employment is terminated by reason of his death, illness or incapacity, as defined in the Agreement, the severance compensation shall be payable in equal monthly installments over a 36 month period beginning no later than 30 days
from the date Employee’s employment is terminated.

          5.5     Effect of Delay. Any failure or delay by the Company to exercise the Company’s right to
terminate Employee's employment under this Agreement with respect to any one (1) or more of the matters referred to in Section 5.3 hereof, shall not be deemed to be a waiver by the Company of the Company’s right of termination of this Agreement
in respect of that Act of Breach or incapacity (provided it shall be continuing) or of any subsequent Act of Breach or incapacity. 

          5.6     Employees Right to Terminate. Employee may, upon substantial breach of this Agreement by the Company, terminate this Agreement (i) after giving thirty (30) days prior written notice to the Company of such breach, and (ii) the Company’s failure to cure such breach prior to the expiration
of the 30 day period. In such event, the Company will pay the Employee’s salary due and owing until the date of such termination and the Company shall also pay the severance compensation as set forth in section 5.4, provided the Employee
performs in good faith Employee’s obligations hereunder to the date of such termination. In the event the Employee terminates his employment for any reason other than a substantial breach by the Company, then the Company shall only owe the
Employee any accrued but unpaid salary due through the date of such termination and provided that Employee fully performs Employee's obligations hereunder to the date of such termination and provided further that Employee gives Company ninety (90)
days written notice of termination. 

          5.7     Effect
of Delay. Any failure or delay by the
Employee  to exercise the Employee’s right to terminate his employment under
this Agreement because of a substantial breach of this Agreement by the Company,
shall not be deemed a waiver by the Employee of his right of termination in respect
of such  breach (provided it shall be continuing) or any subsequent breach. 

          5.8     Employee's obligations concerning inventions and work product

                    (a) Employee shall promptly disclose to the Company all Inventions and keep accurate records relating to the conception and reduction to practice of all Inventions. Such records shall be the sole and exclusive
property of the Company, and the Employee shall surrender possession of such records to the Company upon any suspension or termination of the Employee's employment with the Company. 

                    (b) Employee hereby assigns to the Company, without additional consideration to the Employee, the entire right, title and interest in and to the Inventions and Work Product, in and to all proprietary rights therein
or based thereon. The Employee agrees that the Work Product shall be deemed to be a "work made for hire.” The Employee shall execute all such assignments, oaths, declarations and other documents as may be prepared by the Company to effect the
foregoing. 

                    (c) Employee shall provide the Company with all information, documentation, and assistance the Company may request to perfect, enforce, or defend the proprietary rights in or based on the Inventions, Work Product or
Trade Secrets. The Company, in its sole discretion, shall determine the 

EMPLOYMENT AGREEMENT

Randy Hardin 

Page 3 of 7 

extent of the proprietary rights, if any, to be protected in or based on the Inventions and Work Product. All such information, documentation, and assistance shall be provided at no additional expense to the Company,
except for out-of-pocket expenses, which the Employee incurred at the Company's request.

          6.     Employee obligations concerning trade secrets.  

	 	                       (a)
        During the term of his employment with the Company and thereafter for
        twelve months employee shall treat Trade Secrets on a confidential basis
        and not disclose them to others without the prior written permission
        of the Company, or use Trade Secrets for any purpose, other than for
    the performance of services for the Company. 
	 	 	 
	 	                       (b)
        Employee acknowledges that Trade Secrets are the sole and exclusive property
        of the Company. The Employee shall surrender possession of all Trade
        Secrets to the Company upon any suspension or termination of Employee's
        employment with the Company. If after the suspension or termination of
        Employee's employment, Employee becomes aware of any Trade Secrets in
        his possession, Employee shall immediately surrender possession thereof
    to the Company. 
	 	 	 
	 	7.	Competitive activities.  
	 	 	 
	 
      	                      (a)
          During the term of Employee's employment with the Company, Employee
          shall not: 

                            (1)
          Perform any services, directly or indirectly, for any person or entity
          competing, directly or indirectly, with the Company; 

                            (2)
          Own, directly or indirectly, an interest in any entity competing, directly
          or indirectly, with the Company except Employee may own less that 1%
          of a publicly traded company that competes with the Company. 

                           (3)
          Compete, directly or indirectly, with any products or services marketed
          or offered by the Company; and 

                           (4)
          Engage in any activities which could be deemed to be a conflict of
          interest. 

                           (b)
          During the period of twelve months after any suspension or termination
          of Employee's employment hereunder, Employee shall not contact, directly
          or indirectly, any customer of the Company with whom Employee had contact
          during the last 12 months of Employee's employment hereunder nor employ,
          directly or indirectly, any employee of the Company during the last
    12 months of Employee’s employment by the Company. 

          8.     Employee's performance of agreement. Except for such restrictions as may be expressly set forth in any exhibit annexed hereto and
made a part hereof, Employee warrants and represents that he has the ability to enter into this Agreement and perform all obligations hereunder, and that there are no restrictions or obligations to third parties which would in any way detract from
or affect the Employee's performance hereunder. 

          9.     Governing law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Texas. 

EMPLOYMENT AGREEMENT 

Randy Hardin 

Page 4 of 7 

          10.     Unenforceability. If any provision of this
Agreement is determined to be invalid and/or unenforceable by a final decision of a court of competent jurisdiction, it shall not effect the remainder of the Agreement, which shall survive and remain in full force and effect. 

          11.     Survival of certain provisions. Any termination or expiration of this Agreement or suspension or termination of Employee's
employment by the Company notwithstanding, the provisions of this Agreement which are intended to continue and survive shall so continue and survive, including, but not limited to, the provisions of Paragraphs 5, 6, 7, 8, 11, 12 and 17. This
Agreement and all rights hereunder shall inure to the benefit of the Company, its successors and assigns. 

          12.     Cumulative remedies. All rights and remedies of the Company and Employee shall be cumulative and the Company and Employee shall
have the right to obtain specific performance for the enforcement of this Agreement. 

          13.     Arbitration. Any controversy, dispute or claim between the Employee and the Company arising out of or relating to this Agreement,
or its interpretation, application, implementation, breach or enforcement which the parties are unable to resolve by mutual agreement after 30 days written notice of same, shall be settled by submission by either party to the controversy, claim or
dispute to binding arbitration in Dallas County, Texas (unless the parties agree in writing to a different location) before a single arbitrator in accordance with the rules of the American Arbitration Association then in effect. In any such
arbitration preceding the parties agree to provide all discovery deemed necessary by the arbitrator. The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be
entered thereon in any court having jurisdiction thereof. 

          14.     Death Benefit. In the event Employee dies during the term of employment, the Company shall pay to the Employee’s estate the
salary that would otherwise be payable to the end of the month in which the Employee died plus the severance compensation provided for in section 5.4 hereof. 

          15.     Notice. Any notice required to be given shall be either (1) personally delivered or (2) sent by U.S. Postal Service, postage
pre-paid Certified Mail, Return Receipt Requested to the Company at the place of employment and to the Employee at the last residence address given to and on file with Company. 

          16.     Integrated Agreement. This Agreement, into which all prior discussions, understandings and agreements merge, constitutes the
entire agreement between the parties hereto with respect to the employment of Employee by the Company, and may be amended only by a written instrument duly executed by all the parties hereto. 

          17.     Ownership Interest in the Company.  If for any reason the Employee’s employment is terminated during the Initial Term of this
Agreement, Employee must sell back to the Company any ownership interest he has in the Company for the fair market value thereof. Fair market value shall be determined by the parties at least 10 days prior to termination and paid within 30 days of
termination. If the parties cannot agree on the fair market value of Employee’s ownership interest, it shall be submitted to arbitration in accordance with the provisions of Paragraph 13 of this Agreement. This provision does not apply if the
Company’s stock is publicly traded. 

          18.     Supercedes Agreement of August 2002. This Agreement supercedes and replaces the Employment Agreement between the Company and the
Employee executed by the parties in August 2002 and amended by the parties in August 2003. 

EMPLOYMENT AGREEMENT 

Randy Hardin 

Page 5 of 7 

          Employee has read and understands the foregoing and agrees to be bound thereby. Further, Employee has consulted with and retained his own counsel to advise him concerning the terms and
conditions of this Agreement. 

	 	
Employee 
	
	 	 
	 	 
	 	

	
	 	
Randy Hardin 
	
	 	 
	 	
Date: _________________, 2006 
	

     The foregoing was executed by the Employee in the presence of and accepted on behalf of the Company. 

	 	
      Universal Power Group, Inc., a Texas corporation 
    

	 	

    

	 	

    

	 	

 By: 
    

	 	

	 	

 William Tan 
    

	 	
      Chairman of the Board 
    

	 	

    

	 	

 Date: August 1, 2006 
    

	 	

    

	 	

    

	 	

 By:

	 	

	 	

 Julie Sansom-Reese, 
    

	 	

 Chief Financial Officer 
    

	 	

    

	 	
      Date:
        _________________
        , 2006
    

EMPLOYMENT AGREEMENT 

Randy Hardin 

Page 6 of 7 

Exhibit A to Randy Hardin Employment Agreement with Universal Power Group, Inc., a Texas corporation 

Salary 

$220,000 annually. 

Vacation

4 weeks per year. 

Car allowance 

Employee shall be provided an annual company leased current model executive car, such as a Mercedes S550 or equivalent.

Other 

Medical and other employee benefits comparable to that provided to all full time employees of the Company. 

Duties 

Randy Hardin shall be the President and Chief Executive Officer of the Company. He shall perform and be responsible for those duties and obligations of the President and Chief Executive Officer of the Company as set
forth in the Bylaws of the Company. In addition, Randy Hardin shall perform those duties as may reasonably be assigned to him by the Board of Directors of the Company. 

Incentive Bonus 

In addition to his salary as set forth above and subject to the conditions set forth below, Randy Hardin shall be paid an annual incentive bonus, computed as follows: 

	 	1) 	By April of each year during
        the term of this Employment Agreement, the Board of Directors of the
        Company shall review and approve an operating budget for that year. The
        budget shall include a projected pre-tax targeted net income amount for
    the Company approved by the Board for that year. (“Target Net Income Amount”).
	 	 	 
	 	2) 	If for the 12 months ended December 31
        of that year the audited pre-tax net income of the Company equals or
        exceeds Target Net Income Amount for that year, Randy Hardin shall receive,
        as an incentive bonus, 10% of the audited pre-tax net income of the Company
        for that year; provided, however, in no event shall the amount of the
        annual incentive bonus under this paragraph (2) exceed (i) $650,000 for
        the year ending December 31, 2007, (ii) $750,000 for the year ending
        December 31, 2008 and (iii) $850,000 for the year ending December 31,
        2009.
	 	 	 
	 	3) 	In the event the Company’s audited
        pre-tax net income for any year during the term of this Employment Agreement
        does not equal or exceed the Target Net Income Amount for that year,
        Randy Hardin shall not be paid the incentive bonus amount described in
    paragraph (2) above. 
	 	 	 
	 	4)	Nothing contained herein to the contrary shall preclude the Board, in
      its sole and absolute discretion, from awarding Randy Hardin an additional
    bonus in excess of the amount set forth in paragraph (2) above.

Stock Options 

Simultaneously with the execution of this employment agreement, Randy Hardin has been granted an option
 to purchase up to ____ shares of the Company’s common stock, par value $.01 per share, at a price of $____ per share.  The options
 will be exercisable at any time beginning on the date of the grant and ending on the 10th anniversary of the date of the grant.  The options
 are being granted pursuant to and shall be governed by the terms of the Company’s 2006 Stock Option Plan and the related option agreement.
  The granting of this option satisfies all previous obligations of the Company to Randy Hardin regarding the granting of stock options.

EMPLOYMENT AGREEMENT 

Randy Hardin 

Page 7 of 7

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