Document:

Exhibit 10.33

	
  

  
	
  

   Notice of Grant of Award
   and Award Agreement
  	
  
ROSS STORES, INC.
   ID:94-1390387
   4440 Rosewood Drive, Buildling 4
   Pleasanton, CA 94588
   (925) 965-4899 phone
  
	
  

  

 

	
       [NAME]

    	
  
Award   Number:
  	
  
[AWARD   NUMBER]
  
	
  
[ADDRESS]
  	
  
Plan:
  	
  
2004
  
	
  
 
  	
  
ID:
  	
  
[ID]
  
	
   
  	
  
 
  	
  
 
  
	
  

  

Effective [GRANT DATE], you have been granted an award of [SHARES] shares of ROSS STORES, INC. (the Company) common stock.  These shares are restricted until the vest date(s) shown below.

 The current total value of the award
  is [$TOTAL VALUE]

The award will vest in increments on the date(s) shown.

	
       Shares

    	
       

    	
       Full Vest

    
	
      

    	
       

    	
      

    
	
       

    	
       

    	
       

    
	
               [SHARES]

    	
       

    	
         [VEST
        DATE]

    
	
              [SHARES]

    	
       

    	
         [VEST
        DATE]

    

 

	
  

  
	
  
 
  
	
  
By your signature and the Company’s signature below,   you and the Company agree that this award is granted under and governed by   the terms and conditions of the Company’s Award Plan as amended and the Award   Agreement, all of which are attached and made a part of this document.
  
	
  
 
  
	
  

  

 

	
      

    	
        

    	
      

    
	
      ROSS STORES, INC.

    	
        

    	
       Date

    
	 	 	 
	
       

    	
        

    	
        

    
	
      

    	
        

    	
      

    
	
       [PARTICIPANT]

    	
        

    	
       Date

    

   Date:  [DATE]            

  Time:    [TIME]           

 

ROSS STORES, INC.
 RESTRICTED STOCK AGREEMENT

           Ross
  Stores, Inc. has granted to the Participant named in the Notice of Grant
  of Award (the “Grant Notice”) to which this Restricted
  Stock Agreement (the “Agreement”) is attached
  an Award (the “Award”) consisting of Shares
  subject to the terms and conditions set forth in the Grant Notice and this Agreement. 
  The Award has been granted pursuant to the Ross Stores, Inc. 2004 Equity Incentive
  Plan (the “Plan”), as amended to the Date
  of Grant, the provisions of which are incorporated herein by reference. 
  By signing the Grant Notice, the Participant: (a) acknowledges receipt
  of and represents that the Participant has read and is familiar with the Grant
  Notice, this Agreement, the Plan and a prospectus for the Plan in the form most
  recently registered with the Securities and Exchange Commission (the “Plan
  Prospectus”), (b) accepts the Award subject to all
  of the terms and conditions of the Grant Notice, this Agreement and the Plan
  and (c) agrees to accept as binding, conclusive and final all decisions
  or interpretations of the Committee upon any questions arising under the Grant
  Notice, this Agreement or the Plan.

          1.     DEFINITIONS
  AND CONSTRUCTION.

                   1.1     Definitions. 
  Unless otherwise defined herein, capitalized terms shall have the meanings assigned
  in the Grant Notice or the Plan.  Wherever used herein, the following terms
  shall have their respective meanings set forth below:

                             (a)     “Grant
  Date” means the effective date of grant of the Award as
  set forth in the Grant Notice.

                             (b)     “Total
  Number of Shares” means the total number of shares of Stock
  subject to the Award as set forth in the Grant Notice and as adjusted from time
  to time pursuant to Section 7.

                             (c)     “Vested
  Shares” means, on any relevant date, that portion of the
  Total Number of Shares which has vested in accordance with the vesting schedule
  set forth in the Grant Notice.  Provided that the Participant’s Service
  has not terminated prior to the relevant vesting date described in the Grant
  Notice, the number of shares as provided by the Grant Notice shall become Vested
  Shares on such date.

                  1.2     Construction.  Captions and titles contained herein are for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

          2.     THE
  AWARD.

                   2.1     Grant
  and Issuance of Shares.  On the Date of Grant, the Participant will
  acquire and the Company will issue, subject to the provisions of this Agreement,
  a number of Shares equal to the Total Number of Shares set forth in the Grant
  Notice.  As a condition to the issuance of the Shares, the Participant
  shall execute and deliver to the Company along with the Grant Notice (a) the
  Joint Escrow Instructions in the form attached to the Grant Notice and (b) the
  Assignment Separate from Certificate duly endorsed (with date and number of
  shares blank) in the form attached to the Grant Notice.

1

                   2.2     No
  Monetary Payment Required.  The Participant is not required to make
  any monetary payment (other than applicable tax withholding, if any) as a condition
  to receiving the Shares, the consideration for which shall be past services
  actually rendered and/or future services to be rendered to a Participating Company
  or for its benefit.

                  2.3     Beneficial Ownership of Shares; Certificate Registration.  The Participant hereby authorizes the Company, in its sole discretion, to deposit the Shares with the Company’s transfer agent, including any successor transfer agent, to be held in book entry form during the term of the Escrow pursuant to Section 6.  Except as provided by the preceding sentence, a certificate for the Shares shall be registered in the name of the Participant, or, if applicable, in the names of the heirs of the Participant.

                  2.4     Issuance of Shares in Compliance with Law.  The issuance of the Shares shall be subject to compliance with all applicable requirements of federal, state or foreign law with respect to such securities.  No Shares shall be issued hereunder if their issuance would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or the requirements of any stock exchange or market system upon which the Stock may then be listed.  The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any Shares shall relieve the Company of any liability in respect of the failure to issue such Shares as to which such requisite authority
shall not have been obtained.  As a condition to the issuance of the Shares, the Company may require the Participant to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be requested by the Company.

           3.     VESTING
  OF SHARES.

                   3.1     Normal
  Vesting.  Except as provided in Section 3.2, the Shares shall
  vest and become Vested Shares as provided in the Grant Notice; provided however,
  that Shares that would otherwise become Vested Shares on a date on which a sale
  of such Shares by the Participant would violate the Insider Trading Policy of
  the Company shall, not withstanding the vesting schedule set forth in the Grant
  Notice, become Vested Shares on the next day on which such sale would not violate
  the Insider Trading Policy.  For purposes of this Section, “Insider
  Trading Policy” means the written policy of the Company pertaining
  to the sale, transfer or other disposition of the Company’s equity securities
  by members of the Board, Officers or other employees who may possess material,
  non-public information regarding the Company, as in effect at the time of a
  disposition of any Shares.  No additional Shares will become Vested Shares
  following the Participant’s termination of Service for any reason.

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                  3.2     Acceleration of Vesting Upon a Change in Control.  In the event of a Change in Control, the vesting of the Shares shall be accelerated in full and the Total Number of Shares shall be deemed Vested Shares effective as of the date of the Change in Control, provided that the Participant’s Service has not terminated prior to such date.

                  3.3     Federal Excise Tax Under Section 4999 of the Code.

                            (a)     Excess Parachute Payment.  In the event that any acceleration of vesting pursuant to this Agreement and any other payment or benefit received or to be received by the Participant would subject the Participant to any excise tax pursuant to Section 4999 of the Code due to the characterization of such acceleration of vesting, payment or benefit as an excess parachute payment under Section 280G of the Code, the Participant may elect, in his or her sole discretion, to reduce the amount of any acceleration of vesting called for under this Agreement in order to avoid such characterization.

                             (b)     Determination
  by Independent Accountants.  To aid the Participant in making any election
  called for under Section 3.3(a), upon the occurrence of any event that
  might reasonably be anticipated to give rise to the acceleration of vesting
  under Section 3.2 (an “Event”), the Company shall
  promptly request a determination in writing by independent public accountants
  selected by the Company (the “Accountants”).  Unless
  the Company and the Participant otherwise agree in writing, the Accountants
  shall determine and report to the Company and the Participant within twenty
  (20) days of the date of the Event the amount of such acceleration of vesting,
  payments and benefits which would produce the greatest after-tax benefit to
  the Participant.  For the purposes of such determination, the Accountants
  may rely on reasonable, good faith interpretations concerning the application
  of Sections 280G and 4999 of the Code.  The Company and the Participant
  shall furnish to the Accountants such information and documents as the Accountants
  may reasonably request in order to make their required determination. 
  The Company shall bear all fees and expenses the Accountants may reasonably
  charge in connection with their services contemplated by this Section 3.3(b).

          4.     COMPANY
  REACQUISITION RIGHT.

                   4.1     Grant
  of Company Reacquisition Right. Except to the extent otherwise provided
  in an employment agreement between a Participating Company and the Participant,
  in the event that (a) the Participant’s Service terminates for any
  reason or no reason, with or without cause, or (b) the Participant, the
  Participant’s legal representative, or other holder of the Shares, attempts
  to sell, exchange, transfer, pledge, or otherwise dispose of (other than pursuant
  to an Ownership Change Event), including, without limitation, any transfer to
  a nominee or agent of the Participant, any Shares which are not Vested Shares
  (“Unvested Shares”), the Company shall automatically
  reacquire the Unvested Shares, and the Participant shall not be entitled to
  any payment therefor (the “Company Reacquisition Right”).

                   4.2     Ownership
  Change Event.  Upon the occurrence of an Ownership Change Event,
  any and all new, substituted or additional securities or other property to which
  the Participant is entitled by reason of the Participant’s ownership of
  Unvested Shares shall be immediately subject to the Company Reacquisition Right
  and included in the terms “Shares,” “Stock” and “Unvested
  Shares” for all purposes of the Company Reacquisition Right with the same
  force and effect as the Unvested Shares immediately prior to the Ownership Change
  Event.  For purposes of determining the number of Vested Shares following
  an Ownership Change Event, credited Service shall include all Service with any
  corporation which is a Participating Company at the time the Service is rendered,
  whether or not such corporation is a Participating Company both before and after
  the Ownership Change Event.

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           5.     TAX
  MATTERS.

                  5.1     Tax Withholding.

                            (a)     In General.  At the time the Grant Notice is executed, or at any time thereafter as requested by a Participating Company, the Participant hereby authorizes withholding from payroll and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Participating Company, if any, which arise in connection with the Award, including, without limitation, obligations arising upon (a) the transfer of Shares to the Participant, (b) the lapsing of any restriction with respect to any Shares, (c) the filing of an election to recognize tax liability, or (d) the transfer by the Participant of any Shares. 
The Company shall have no obligation to deliver the Shares or to release any Shares from the Escrow established pursuant to Section 6 until the tax withholding obligations of the Participating Company have been satisfied by the Participant.

                            (b)     Withholding in Shares.  Subject to approval by the Company, in its discretion, the Participant may satisfy all or any portion of the Participating Company’s tax withholding obligations by requesting the Company to withhold a number of whole, Vested Shares otherwise deliverable to the Participant or by tendering to the Company a number of whole, Vested Shares or vested shares of Stock acquired otherwise than pursuant to this Agreement having, in any such case, a fair market value, as determined by the Company as of the date on which the tax withholding obligations arise, not in excess of the amount of such tax withholding obligations determined by the applicable minimum statutory withholding rates.  Any adverse consequences to the Participant
resulting from the procedure permitted under this Section, including, without limitation, tax consequences, shall be the sole responsibility of the Participant.

                  5.2     Election Under Section 83(b) of the Code.

                             (a)     The
  Participant understands that Section 83 of the Code taxes as ordinary income
  the difference between the amount paid for the Shares, if anything, and the
  fair market value of the Shares as of the date on which the Shares are “substantially
  vested,” within the meaning of Section 83.  In this context,
  “substantially vested” means that the right of the Company to reacquire
  the Shares pursuant to the Company Reacquisition Right has lapsed.  The
  Participant understands that he or she may elect to have his or her taxable
  income determined at the time he or she acquires the Shares rather than when
  and as the Company Reacquisition Right lapses by filing an election under Section 83(b)
  of the Code with the Internal Revenue Service no later than thirty (30) days
  after the date of acquisition of the Shares.  The Participant understands
  that failure to make a timely filing under Section 83(b) will result in
  his or her recognition of ordinary income, as the Company Reacquisition Right
  lapses, on the difference between the purchase price, if anything, and the fair
  market value of the Shares at the time such restrictions lapse.  The Participant
  further understands, however, that if Shares with respect to which an election
  under Section 83(b) has been made are forfeited to the Company pursuant
  to its Company Reacquisition Right, such forfeiture will be treated as a sale
  on which there is realized a loss equal to the excess (if any) of the amount
  paid (if any) by the Participant for the forfeited Shares over the amount realized
  (if any) upon their forfeiture.  If the Participant has paid nothing for
  the forfeited Shares and has received no payment upon their forfeiture, the
  Participant understands that he or she will be unable to recognize any loss
  on the forfeiture of the Shares even though the Participant incurred a tax liability
  by making an election under Section 83(b). 

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                             (b)     The
  Participant understands that he or she should consult with his or her tax advisor
  regarding the advisability of filing with the Internal Revenue Service an election
  under Section 83(b) of the Code, which must be filed no later than thirty
  (30) days after the date of the acquisition of the Shares pursuant to this Agreement. 
  Failure to file an election under Section 83(b), if appropriate, may result
  in adverse tax consequences to the Participant.  The Participant acknowledges
  that he or she has been advised to consult with a tax advisor regarding the
  tax consequences to the Participant of the acquisition of Shares hereunder. 
  ANY ELECTION UNDER SECTION 83(b) THE PARTICIPANT WISHES TO MAKE MUST BE
  FILED NO LATER THAN 30 DAYS AFTER THE DATE ON WHICH THE PARTICIPANT ACQUIRES
  THE SHARES.  THIS TIME PERIOD CANNOT BE EXTENDED.  THE PARTICIPANT
  ACKNOWLEDGES THAT TIMELY FILING OF A SECTION 83(b) ELECTION IS THE PARTICIPANT’S
  SOLE RESPONSIBILITY, EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE
  TO FILE SUCH ELECTION ON HIS OR HER BEHALF.

                            (c)     The Participant will notify the Company in writing if the Participant files an election pursuant to Section 83(b) of the Code.  The Company intends, in the event it does not receive from the Participant evidence of such filing, to claim a tax deduction for any amount which would otherwise be taxable to the Participant in the absence of such an election.

           6.     ESCROW.

                   6.1     Establishment
  of Escrow.  To ensure that Shares subject to the Company Reacquisition
  Right will be available for reacquisition, the Company may deposit the Shares
  with the Company’s transfer agent to be held in book entry form, as provided
  in Section 2.3, and the Participant agrees to deliver to and deposit with
  an escrow agent designated by the Company each certificate, if any, evidencing
  the Shares, and an Assignment Separate from Certificate with respect to such
  book entry shares and each such certificate duly endorsed (with date and number
  of shares blank) in the form attached to the Grant Notice, to be held by the
  agent under the terms and conditions of the Joint Escrow Instructions in the
  form attached to the Grant Notice (the “Escrow”). 
  The Company shall bear the expenses of the escrow.

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                  6.2     Delivery of Shares to Participant.  Whenever the Participant or the Participant’s legal representative proposes to sell, exchange, transfer, pledge or otherwise dispose of (other than pursuant to an Ownership Change Event) any shares of Stock subject to the Escrow, the Participant shall so notify the Company.  As soon as practicable thereafter, the Company shall determine, in its sole discretion, whether (a) such proposed disposition would not cause the Company to automatically reacquire such Shares pursuant to the Company Reacquisition Right and (b) the Participant has made adequate provision for the tax withholding obligations, if any, pursuant to Section 5.  If both conditions (a) and (b) set forth in the preceding sentence are satisfied, the Company shall, as soon as
practicable, so notify the Participant and give to the escrow agent a written notice directing the escrow agent to deliver such Shares to the Participant.  As soon as practicable after receipt of such notice, the escrow agent shall deliver to the Participant the Shares specified in such notice, and the Escrow shall terminate with respect to such Shares.

           7.     ADJUSTMENTS
  FOR CHANGES IN CAPITAL STRUCTURE.

                  Subject to any required action by the stockholders of the Company, in the event of any change in the Stock effected without receipt of consideration by the Company, whether through merger, consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or similar change in the capital structure of the Company, or in the event of payment of a dividend or distribution to the stockholders of the Company in a form other than Stock (excepting normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate adjustments shall be made in the number and class of shares subject to the Award.  For purposes of the foregoing, conversion of any convertible securities of the Company
shall not be treated as “effected without receipt of consideration by the Company.”  Any fractional share resulting from an adjustment pursuant to this Section shall be rounded down to the nearest whole number.  The Committee in its sole discretion, may also make such adjustments in the terms of any Award to reflect, or related to, such changes in the capital structure of the Company or distributions as it deems appropriate.  The adjustments determined by the Committee pursuant to this Section shall be final, binding and conclusive.

          8.     LEGENDS.

                  The Company may at any time place legends referencing the Company Reacquisition Right and any applicable federal, state or foreign securities law restrictions on all certificates representing the Shares.  The Participant shall, at the request of the Company, promptly present to the Company any and all certificates representing the Shares in the possession of the Participant in order to carry out the provisions of this Section.  Unless otherwise specified by the Company, legends placed on such certificates may include, but shall not be limited to, the following:

	
      
 
  	
      
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE   SUBJECT TO RESTRICTIONS SET FORTH IN AN AGREEMENT BETWEEN THIS CORPORATION   AND THE REGISTERED HOLDER, OR HIS PREDECESSOR IN INTEREST, A COPY OF WHICH IS   ON FILE AT THE PRINCIPAL OFFICE OF THIS CORPORATION.”
  

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           9.     TRANSFERS
  IN VIOLATION OF AGREEMENT.

                  No Shares may be sold, exchanged, transferred (including, without limitation, any transfer to a nominee or agent of the Participant), assigned, pledged, hypothecated or otherwise disposed of, including by operation of law, in any manner which violates any of the provisions of this Agreement and, except pursuant to an Ownership Change Event, until the date on which such shares become Vested Shares, and any such attempted disposition shall be void.  The Company shall not be required (a) to transfer on its books any Shares which will have been transferred in violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such Shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom such Shares will have been so transferred.  In order to enforce its rights under this Section,
the Company shall be authorized to give a stop transfer instruction with respect to the Shares to the Company’s transfer agent.

          10.   RIGHTS
  AS A STOCKHOLDER.

                  The Participant shall have no rights as a stockholder with respect to any Shares subject to the Award until the date of the issuance of a certificate for such Shares (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company).  No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such certificate is issued, except as provided in Section 7.  Subject the provisions of this Agreement, the Participant shall exercise all rights and privileges of a stockholder of the Company with respect to Shares deposited in the Escrow pursuant to Section 6.

           11.   RIGHTS
  AS EMPLOYEE, CONSULTANT OR BOARD MEMBER.

                  If the Participant is an Employee, the Participant understands and acknowledges that, except as otherwise provided in a separate, written employment agreement between a Participating Company and the Participant, the Participant’s employment is “at will” and is for no specified term.  Nothing in this Agreement shall confer upon the Participant any right to continue in the Service of a Participating Company or interfere in any way with any right of the Participating Company Group to terminate the Participant’s Service at any time.

           12.   MISCELLANEOUS
  PROVISIONS.

                  12.1   Administration.  All questions of interpretation concerning the Grant Notice and this Agreement shall be determined by the Committee.  All determinations by the Committee shall be final and binding upon all persons having an interest in the Award.  Any Officer shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the responsibility of or which is allocated to the Company herein, provided the Officer has apparent authority with respect to such matter, right, obligation, or election.

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                  12.2  Amendment.  The Committee may amend this Agreement at any time; provided, however, that no such amendment may adversely affect the Participant’s rights under this Agreement without the consent of the Participant.  No amendment or addition to this Agreement shall be effective unless in writing.

                  12.3   Nontransferability of the Award.  The right to acquire Shares pursuant to the Award may not be assigned or transferred in any manner except by will or by the laws of descent and distribution.  During the lifetime of the Participant, all rights with respect to this Award shall be exercisable only by the Participant.

                  12.4   Further Instruments.  The parties hereto agree to execute such further instruments and to take such further action as may reasonably be necessary to carry out the intent of this Agreement.

                  12.5   Binding Effect.  This Agreement shall inure to the benefit of the successors and assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the Participant and the Participant’s heirs, executors, administrators, successors and assigns.

                  12.6   Delivery of Documents and Notices.  Any document relating to participation in the Plan or any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given (except to the extent that this Agreement provides for effectiveness only upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address, if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally recognized overnight courier service, with postage and fees prepaid, addressed to the other party at the address shown below that party’s signature to the Grant Notice or at such other address as such party may designate in writing from time to time to the other
party.

                            (a)     Description of Electronic Delivery.  The Plan documents, which may include but do not necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any reports of the Company provided generally to the Company’s stockholders, may be delivered to the Participant electronically.  In addition, the parties may deliver electronically any notices called for in connection with the Escrow.  Such means of electronic delivery may include but do not necessarily include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other means of electronic delivery specified by the Company.

                             (b)     Consent
  to Electronic Delivery.  The Participant acknowledges that the Participant
  has read Section 12.6(a) of this Agreement and consents to the electronic
  delivery of the Plan documents and notices in connection with the Escrow, as
  described in Section 12.6(a).  The Participant acknowledges that he
  or she may receive from the Company a paper copy of any documents delivered
  electronically at no cost to the Participant by contacting the Chief Financial
  Officer of the Company by telephone or in writing.  The Participant further
  acknowledges that the Participant will be provided with a paper copy of any
  documents if the attempted electronic delivery of such documents fails. 
  Similarly, the Participant understands that the
  Participant must provide the Company or any designated third party administrator
  with a paper copy of any documents if the attempted electronic delivery of such
  documents fails.  The Participant may revoke his or her consent to the
  electronic delivery of documents described in Section 12.6(a) or may change
  the electronic mail address to which such documents are to be delivered (if
  Participant has provided an electronic mail address) at any time by notifying
  the Company of such revoked consent or revised e-mail address by telephone,
  postal service or electronic mail.  Finally, the Participant understands
  that he or she is not required to consent to electronic delivery of documents
  described in Section 12.6(a).

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                  12.7   Integrated Agreement.  The Grant Notice, this Agreement and the Plan, together with any employment, service or other agreement between the Participant and a Participating Company referring to the Award shall constitute the entire understanding and agreement of the Participant and the Participating Company Group with respect to the subject matter contained herein or therein and supersedes any prior agreements, understandings, restrictions, representations, or warranties among the Participant and the Participating Company Group with respect to such subject matter other than those as set forth or provided for herein or therein.  To the extent contemplated herein or therein, the provisions of the Grant Notice and the Agreement shall survive any settlement of the Award and shall remain in full force and effect.

                  12.8   Applicable Law.  This Agreement shall be governed by the laws of the State of California as such laws are applied to agreements between California residents entered into and to be performed entirely within the State of California.

                  12.9   Counterparts.  The Grant Notice may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

9Exhibit  10.1

BUSINESS  LEASE

THIS  AGREEMENT, entered into this 25th day of AUGUST, 2004, between INVESTMENTS
LIMITED,  property  owner and licensed real estate broker, hereinafter Lessor or
Landlord,  party  of  the  first  part and SCOTT GALLAGHER AND FTS GROUP, INC. A
NEVADA INCORPORATED CORPORATION, operating in the County of HILLSBOROUGH and the
State  of  FLORIDA, hereinafter called the Lessee or Tenant, party of the second
part:

WITNESSETH,  That  the  said Lessor does hereby lease unto said Lessee, and said
Lessee  does  hereby hire and take as Lessee under said Lessor, property located
at 7610 WEST HILLSBOROUGH AVENUE, TAMPA_, Florida, 33615 to be used and occupied
by the Lessee as a  RETAIL AND OFFICE USE FOR WIRELESS BUSINESS and for no other
purpose whatsoever without the prior written consent of the Lessor, for the term
of  THREE  (_3_)  years beginning on the 1ST day of  SEPTEMBER, 2004, and ending
the  30TH  day  of  AUGUST,  2007,  and  payable  as  follows:

BASE  RENT:
$3,000.00/MO
CAMS  YEAR  ONE:  $370.00/MO

First  month's  rent,  last  month's  rent  and  a security deposit equal to one
month's rent shall be paid to Lessor prior to occupancy.  In addition to monthly
rent  and  proportionate  expenses  set  forth in Clause 12, Lessee shall pay to
Lessor  applicable state sales tax. All monies due herein, whether designated as
rent,  deposits, sales tax, common area maintenance charges, late fees, transfer
fees,  bank  charges  for  insufficient funds, or proper monies owed on account,
shall  be  deemed  and  considered as "additional rent" at the time same becomes
due.  All payments must be made to the Lessor on the first day of each and every
month  in  advance  without demand, setoff, holdback or deduction, at the office
of:  INVESTMENTS  LIMITED,  215  North  Federal  Highway,  Suite  1, Boca Raton,
Florida,  33432,  (561)  392-8920 or to such other person as the Lessor may from
time  to  time  designate  in writing.  Lessee shall provide Lessor with a major
credit card at execution of this Lease.  Lessee authorizes Lessor to charge rent
and  additional rent to the credit card, with no further notice to Lessee, after
same has become fourteen calendar days late.  In the event the commencement date
of  this  Lease  is  a  date  other  than the first day of a month, all rent and
additional  rent shall be prorated and paid in advance so that all future rental
payments  shall be due and payable on the first day of each successive month. It
is  understood and agreed between the parties hereto that time is of the essence
of  this  Lease,  and this applies to all terms and conditions contained herein.
The  following express stipulations and conditions are made a part of this Lease
and  are  hereby  assented  to  by  the  Lessee:

1.  The  Lessee  shall  not  assign this Lease, sublet the premises, or any part
thereof,  or  use  the  same  for  any  other  purpose  than above, nor make any
alterations,  nor  permit  the  same,  without  the prior written consent of the
Lessor.  All  additions,  fixtures  or  improvements  which  may  be made by the
Lessee,  except  moveable  office  furniture,  shall  become the property of the
Lessor and remain upon the premises as part thereof, and be surrendered with the
premises  at the termination of this Lease.  Any assignment or subletting of the
premises  shall not release the assignor or sub-lessor of any of the obligations
of  this  Lease.  In  the  event  of a sublease of the premises, any increase in
rental as between sub-lessor and sub-lessee shall revert to and belong to Lessor
and  shall  be  payable  as  additional  rent  to  this  Lease.  Any assignment,
subletting  or  change of tenancy is subject to payment to Lessor of a change of
tenancy  fee  equal  to  one  month's full rent, payable at the time of Lessor's
consent  to  assignment.  Such  assignment  shall  not be unreasonably withheld.

2.  The  Lessee shall promptly execute and comply with all statutes, ordinances,
rules,  orders,  regulations  and  requirements  of  the Federal, State and City
Government  and  of any and all their departments and bureaus applicable to said
premises,  for  any  purpose whatsoever, including but not limited to licensing,
signage, installation maintenance and repair of back-flow prevention devices and
grease  traps,  when applicable, construction and the correction, prevention and
abatement  of  nuisances or other grievances in, upon or connected with the said
premises  during  said term; and shall also promptly comply with and execute all
rules,  orders and regulations for the prevention of fires, at Lessee's own cost
and  expense.  Any fine or penalty assessed or lien imposed against the owner or
the  property  as  a  direct  result  of  Tenant's  failure  to  comply with the
provisions  of  this  paragraph  shall  be charged to Tenant as additional rent.

3.  In  the event the premises shall be destroyed or so damaged by fire or other
casualty  during  the  life  of  this  Lease, whereby the same shall be rendered
untenantable,  then  the  Lessor  shall  have  the right to render said premises
tenantable  by repairs within ninety days from the date of said untenantability.
If  said  premises  are  not  rendered  tenantable within said time, it shall be
optional with either party hereto to cancel this Lease, and in the event of such
cancellation,  the rent shall be paid only to the date of such fire or casualty.
The  cancellation  herein  mentioned  shall  be  evidenced  in  writing.

4.  The  prompt  payment  of  rent for said premises as provided for herein, the
names,  and  the  faithful  observance of the rules and regulations printed upon
this  Lease,  all  of which are hereby made a part of this covenant, and of such
other  and  further  rules or regulations as may be hereafter made by the Lessor
are  the  conditions  upon  which  the Lease is made and accepted and the Lessee
hereby  expressly  waives  any  statutory  right, if any, to interest on prepaid
deposits, or Lessor's requirement to segregate funds, and expressly acknowledges
that  Lessor  may commingle and utilize prepaid deposits during the term of this
Lease  and  any  extensions  thereof.

5.  In  the event this Lease is for a period exceeding one year, upon each lease
anniversary,  the  base  rental shall increase by the then Consumer Price Index,
but  in  no event less than five percent per annum, unless a greater increase is
specified  herein.

6.  Lessee  agrees to provide Lessor with written notice sixty days prior to the
termination  date  of  this Lease of its intent to either renew or vacate at the
end  of the lease term.  If Lessee vacates the premises without providing proper
written  notice  Lessee  forfeits all security deposits and last month's rent in
addition  to  any  other  claims  Lessor has against Lessee.  If Lessee does not
provide  Lessor  with  proper  written  notice  of intent to stay or vacate, and
remains  in  possession  of  the  premises, then the lease will be automatically
extended on a month to month basis and the rental rate for said tenancy shall be
double  rent.

7.  If  the  Lessee  shall abandon or vacate said premises before the end of the
term  of  this Lease, or shall suffer the rent to be in arrears, the Lessor may,
at  its option, forthwith cancel this Lease or he may enter said premises as the
agent  of  the  Lessee,  by  force or otherwise, without being liable in any way
therefore,  and  re-let  the  premises with or without any furniture that may be
therein,  as  the agent of the Lessee, at such price and upon such terms and for
such duration of time as the Lessor may determine, and receive the rent thereof,
applying  the  same to the payment of the rent due by these presents, and if the
full  rental  herein provided shall not be realized by Lessor over and above the
expenses to Lessor in such re-letting, the said Lessee shall pay any deficiency.
Any  such retaking of possession shall not constitute a rescission of the Lease,
by  either  party  or  a  surrendering  of  the  leasehold  estate  by  Lessee.

8.   It  is hereby agreed between the Lessor and Lessee that the premises herein
mentioned  are  demised  for  the  whole  term with the whole amount of the rent
herein reserved due and payable at the time of the making of Lease, and that the
payment  of  rent in installments is for the convenience of the Lessee only, and
in  the  event of default of any installment of rent, then the whole of the rent
reserved for the period then remaining unpaid, shall, at the Lessor's option, at
once  become  accelerated, due and payable. In the event that any default occurs
by  the  Lessee,  whether monetary or non-monetary, the Lessee agrees to pay the
cost  of  collection  or  compliance,  including,  but not limited to reasonable
attorney's  fees  whether suit be filed or not.  To the extent permitted by law,
the  parties  waive  trial  by  jury  in  any  action  or  proceeding brought in
connection  with  this  Lease  or any action or proceeding brought in connection
with  any  transaction  between  the  parties  hereto.

10.  In  the  event Lessee fails to occupy the premises or otherwise defaults in
performance  of  this  Lease, Lessor may, at Lessor's option, retain any and all
prepaid  deposits  as  liquidated  damages,  in  addition  to any other remedies
afforded  Lessor,  pursuant  to  the  Lease or Florida law. The lease term shall
begin upon the lease commencement date as set forth in this lease or when Lessor
delivers  possession  of  same,  whichever  occurs  sooner, without rent offset,
deduction  or any other liability to Lessor. Notwithstanding the foregoing, upon
breach,  abandonment or renunciation of this Lease by Lessee, in addition to any
and all legal remedies Lessor may declare the entire balance of the rent due and
payable  and  may  collect  same  by  distress  or  otherwise.

11.   The  Lessee  agrees  that he will pay all charges for gas, electricity, or
other  illumination,  and  for  all water used on said premises.  Any failure by
Lessee  to pay said charges within five days after same shall become due, at the
option  of  Lessor  the  Lessor  may,  consider  the Lessee to be in default and
declare  the  entire  rent  due  under  the  terms of this Lease at once due and
payable  and  may  forthwith  be  collected  by  distress  or otherwise.  Lessee
covenants  not  to overload the electrical wiring servicing the leased premises.
Any  retail  food  facility  shall  provide  for  and  pay  for  its  own refuse
collection.

12.   Lessee agrees to pay for his proportionate share of all annual common area
expenses (CAMS) connected with the operation of the entire property of which the
demised  premises  are a part, including, but not limited to, real estate taxes,
water,  management,  administration,  governmental  assessments,  insurance  and
maintenance,  to  be  paid  in equal monthly installments.  Said sums are hereby
designated  as  "additional  rent" and shall be adjusted effective as of January
1st  of  each calendar year.   All specifications, facts and square footages are
approximations  only.

13.  The said Lessee hereby pledges and assigns to the Lessor all the furniture,
fixtures,  goods  and  chattels of said Lessee, which shall or may be brought or
put  on  said  premises,  as security for the payment of the rent and additional
rent  herein  reserved, and the Lessee agrees that the said lien may be enforced
by  distress  foreclosure  or  otherwise at the election of said Lessor.  Lessee
hereby  authorizes  Lessor  to  file  a UCC-1 financing statement evidencing the
security  interest  of Lessor as contained herein, with or without the signature
of  Lessee  as  debtor.  Lessee  expressly  waives the requirement under section
83.12  of  the  Florida  Statutes that the Plaintiff in Distress for Rent action
files a bond, it being understood that no bond shall be required in such action.

14.   In  addition  to the stated rent and additional rent designated under this
lease  and  any  extension  or  renewal  the  Lessee  shall  pay  to  Lessor, as
percentage  rent,  the  amount  by  which  eight percent of Lessee's gross sales
exceeds  base  rent.  Lessee  shall  furnish a record of Lessee's gross sales to
Lessor  each  month  no later than the tenth of each following month. Percentage
Rent  shall  be  paid  quarterly no later than the twenty day after the close of
each  Quarterly  Period,  as  additional  rent  hereunder.

15.  It  is  hereby  agreed and understood between Lessor and Lessee that in the
event  the  Lessor decides to remodel, alter, or demolish all or any part of the
premises  leased  hereunder,  or in the event of the sale or long-term lease, of
all  or  any part of the property requiring this space, the Lessee hereby agrees
to  vacating same upon receipt of sixty days written notice, and the Lessor will
return any advance rental paid on account of this Lease, less any monies owed to
Lessor.

16.  The  Lessor,  or  any  of  his  agents,  shall have the right to enter said
premises  during all reasonable hours, to examine the same to make such repairs,
additions  or alterations as may be deemed necessary for the safety, comfort, or
preservation  of  said building, or to exhibit said premises, and to put or keep
upon  the  doors or window thereof a notice "FOR RENT", or similar notice at any
time  within sixty days before the expiration of this Lease.  The right of entry
shall  likewise  exist  for  the  purpose of removing placards, signs, fixtures,
alterations,  or  additions, which do not conform to this Lease, or to the rules
and  regulations  of  this  building,  or of any governmental authority.  In the
event  Lessee  changes  the  locks  to  the  premises, Lessee agrees to promptly
provide Lessor with a key.  Unless otherwise provided for, Lessee agrees that it
and  its employees shall not park their personal vehicles in the parking area of
the  center  of which the demised premises is a part, but shall reserve same for
customer  parking.  Lessee,  at its own expense shall maintain an annual service
contract  for  the air conditioning unit and shall immediately provide a copy to
Lessor.  Lessee  shall  provide a copy of said service contract to Lessor within
thirty  days  of  Lease  commencement.  Failure  to  timely provide such service
contract  is  deemed  a  default  under  the  lease.

17.  Lessee  hereby  acknowledges and agrees that it has carefully inspected the
premises  and  all improvements therein, and that he is fully satisfied with the
size  of  the space and the physical condition thereof, and accepts the premises
in  its  "as  is"  condition.  In  leasing  the  Premises,  Lessee  expressly
acknowledges and agrees that, except as, and only to the extent specifically set
forth  in  this Lease, and notwithstanding anything to the contrary contained in
this  Lease or in any rider, schedule or exhibit referred to in the body of this
Lease and attached hereto, neither Lessor nor any broker or any representatives,
agents,  employees  or attorneys of Lessor previously made, and do not now make,
and  that  he  is  not  relying  upon,  any oral or written, express or implied,
warranties,  guarantees,  representations,  agreements,  covenants,  broker
information  or listings, or other statements (express or implied) as to (a) the
physical  condition  of the Premises or any improvement thereon, or of any other
property  included  in  this  Lease, including, but not limited to, store front,
show  windows,  doors,  windows,  plate  and  window  glass,  floor  covering,
electrical,  plumbing,  heating, air cooling, dehumidification, sewage disposal,
water  supply,  roof,  foundation,  walls  (interior  and  exterior),  soils and
geology, size of Premises, appliances, utility fixtures, equipment, parking, and
any  other appurtenances relating thereto, or (b) the suitability, habitability,
merchantability, fitness or legality of the Premises or its improvements for any
particular  purposes,  or (c) as to the status of any termite or other insect or
pest  infestation, or water flow rate or quality, or (d) the presence or absence
of  any  contamination  of the Premises by hazardous materials as defined by any
local,  state  or  federal  law,  rule  or  regulation  adopted and publications
promulgated  pursuant  thereto,  or  (e)  the  expenses,  taxation, operation or
maintenance  of  the  Premises,  or  (f) as to the character, quantity, quality,
value,  use  or  condition  of  the  Premises and articles of personal property,
utilities  and  equipment  agreed  to  be leased with the Premises, or any other
matter  related  thereto, or (g) that the improvements are structurally sound or
in  compliance with any city, county, state or federal statute, code, ordinance,
law,  rule  or  regulation  affecting  the  Premises.

Lessee agrees, at its sole cost and expense, to repair or replace, as necessary,
and  maintain  in  good  and operational order and condition, the roof above the
demised  premises,  the  interior  portions  of  the premises, including but not
limited  to  the  store  front,  show  windows, doors, windows, plate and window
glass,  floor covering, plumbing, heating, air conditioning system(s) and ducts,
electrical,  sewage  system  facilities  and appliances.  Lessee shall be solely
responsible for the cost of and repair to any signage on the premises, including
but  not  limited to store front, soffit or pylon signage that reflects Lessee's
name,  logo  or signature.  Lessee shall be solely responsible for the purchase,
installation  and  storage  of hurricane shutters, at its sole cost and expense.

Lessee  hereby  covenants  not  to  hold  Lessor  responsible  or liable for and
completely  indemnifies Lessor for any damages by abatement of rent or otherwise
for  injury to property or person, including but not limited to, the building or
any part thereof or any appurtenances thereof being out of repair, or due to the
happening  of  any  accident  (including,  but  not  limited to any negligent or
intentional  acts  on  Lessor's  part) especially but not exclusively any damage
caused  by  water,  windstorm,  tornado,  gas, steam, electric wiring, sprinkler
system,  plumbing  or  heating/cooling  apparatus or any other act or occurrence
whatsoever.

The  Lessee  agrees to provide, during the term of this Lease, insurance against
loss  or  damage  to  the  plate  glass,  fire  insurance, and to provide public
liability insurance in the minimum amount of $300,000.00.  Any such policy shall
name  Lessor as a first named additional insured.  It is further agreed that the
Lessee  will  indemnify  and hold harmless the Lessor for any damages, claims or
injuries,  including  attorney  fees,  made  by  any  person  arising out of the
operation  by  the  Lessee of the Leased premises or common areas.  Lessee shall
provide  a  copy  of  said  policies  to  Lessor  within  thirty  days  of Lease
commencement.  Failure  to  timely provide such policy is deemed a default under
the  lease.

19.  If  the Lessee shall become insolvent or if bankruptcy proceedings shall be
begun  by  or  against  the  Lessee,  before the end of said term, the Lessor is
hereby irrevocably authorized, at its option, to forthwith cancel this Lease, as
a  default.  Lessor  may  elect  to  accept rent from such receiver, trustee, or
other  judicial  officer  during  the term of their occupancy in their fiduciary
capacity.  A  receiver,  trustee  or other judicial officer shall never have any
right, title or interest in or to the above described property by virtue of this
Lease.  Lessee  acknowledges  that this Lease may be terminated by the Lessor at
his  sole  option, at any time upon sixty days advance written notice to Lessee.

20.  It  is understood and agreed between the parties hereto that written notice
mailed or delivered to the premises leased hereunder shall constitute sufficient
notice  to  the  Lessee,  to  comply  with  the  terms  of  this  Lease.

21.  The  rights  of  the  Lessor  under  the foregoing shall be cumulative, and
failure  on  the  part  of  the  Lessor  to  exercise  promptly any rights given
hereunder  shall  not operate as a waiver of any of the said rights.  Any monies
owed to Lessor pursuant to any prior lease between the parties, if any, for this
or  any  other  property,  shall  remain  due and owing, and the same are hereby
designated  as  "additional  rent"  hereunder.

22.  It  is  further  understood  and agreed between the parties hereto that any
charges  against  the  Lessee by the Lessor for services or for work done on the
premises  by order of the Lessee or otherwise accruing under this Lease shall be
considered  as  rent  due  and  shall  be  included in any lien for rent due and
unpaid.  Lessee  shall  be  liable  for  any damage to the building, the demised
premises  or  any  adjacent  occupant,  caused  by work performed by Lessee, its
agents  or  employees  for  the  benefit  of Lessee at the premises. The cost of
repair  of  such  damage  shall  be  chargeable  to  Lessee  as additional rent.

23.  It is hereby understood that any signs or advertising to be used, including
awnings,  in  connection  with  the  premises  leased  hereunder  shall be first
submitted  to  the Lessor for approval before installation of same, and that any
cost  of same shall be borne by the Lessee.  Lessee hereby agrees to comply with
any  sign  ordinance  imposed  by  the  governing municipality.  If uniform sign
criteria  are  in  place  for the center in which the premises is a part, Lessee
shall  comply  with same.  For the purposes of promoting the Shopping Center, if
any,  on which the leased premises exists, Lessee agrees to pay an assessment of
$.08 per square foot of rented space per month.  Said assessment shall be deemed
additional  rent hereunder.  If not paid by Lessee, Lessor may advance such sums
and  collect  same  bearing  interest at the highest rate permitted by law, with
said  interest  also  being  deemed  additional  rent.

24  If  any  and all of the demised premises, in its entirety, is acquired by or
under  the  threat  of  eminent  domain  for  any  public of quasi public use or
purpose,  then  this  Lease  will  terminate  as  of  the earlier of the date of
possession  of  said  premises  by  the  condemning authority or the date of the
transfer  of title.  If ten percent or more of Lessee's bay shall be acquired by
or  under the threat of eminent domain, then Lessor or Lessee may terminate this
Lease  by  giving the other party sixty days notice from the date of transfer of
title.  Under  no circumstances shall there be any abatement of rent, if part of
the  demised premises are acquired by or under the threat of eminent domain.  If
the  demised  premises  or  any  part  thereof is acquired, Lessor reserves unto
itself,  and  Lessee  hereby  assigns  to  Lessor,  all  rights  to  damages  or
compensation  occurring on account of any such taking or condemnation, including
damages  to Lessee's business.  Lessee shall execute such instruments, including
subordinations, as may be required by Lessor or to undertake such other steps as
may be requested to join with Lessor in any petition for the recovery of damages
and  to  turn  over  to Lessor any such damages that may be received in any such
proceeding.  If  Lessee  fails  to execute such document as requested, as herein
stated  then,  and  in  such  event,  Lessor shall be deemed the duly authorized
irrevocable agent and attorney-in-fact of Lessee to execute such instruments and
undertake  such  steps  as  herein  stated  in  and  on  behalf  of  Lessee.

25.  Lessee  acknowledges  that  rental  installments are due and payable on the
first of each month, and that ten percent late fee will be charged for all rents
received  after  the  fifth  of  the  month,  due  and  payable automatically as
additional  rent,  without  the  necessity  of  notice to Lessee of such charge.
Lessee  acknowledges that a fee equal to five percent of the amount of the check
shall  be charged on all returned checks, as an administrative fee, and shall be
payable  as  "additional  rent".

26.  Lessee  hereby  acknowledges  that  this Lease does not create any property
rights  in  the  Lessee  and  Lessee's rights pursuant to this Lease is now, and
shall  continue  to be, subordinate to any financing that the Lessor may have on
the real property or which may be placed on the property during the term of this
Lease  or  any extensions.  Lessee agrees to execute any documents, as requested
by  the  Lessor  or  financial  institution, confirming the subordination of the
Lease,  and  further  agrees  to provide lease estoppel information to Lessor or
lender, when requested.  In the event the Lessee fails to execute documents when
requested,  Lessee  hereby  grants  Lessor  a power of attorney to execute those
documents  on  behalf  of  said  Lessee.

27. The invalidity or unenforceability of any particular provision of this Lease
shall not affect the other provisions hereof or portions of provisions, and this
Lease  shall  be  construed  in all respects as if such invalid or unenforceable
provision  or  portion  is  omitted.

28. The parties hereto expressly acknowledge that this Lease does not constitute
a  joint  venture,  partnership  or  other  such relationship between Lessor and
Lessee.

29.  The  individuals,  whether  signing  in  corporate,  partner  or individual
capacity,  whose  signatures appear below, jointly and severally, personally and
individually  guarantee  all  of  the obligations of Lessee due pursuant to this
Lease,  monetary  and  non-monetary.  This  guarantee shall be unconditional and
shall apply to the initial terms as well as any options, renewals or extensions.
This  Lease shall bind the Lessee and its or their respective heirs, successors,
administrators,  legal  representatives,  executors  and  assigns.

30.  The  parties  hereby  acknowledge that each and every promise, covenant and
condition  contained  herein  was  bargained  for, provided for, and agreed upon
based on good and valuable consideration.  It is understood and agreed that this
written  Lease  (including  any riders, schedules or exhibits referred to in the
body of this Lease and attached hereto) constitutes the entire agreement between
the parties hereto, and that no oral statement or promises, and no understanding
not  embodied  in  this  writing,  shall  be  valid  or  binding.

31.  Term  "default"  as  used  in the context of Lessee's obligations hereunder
shall  be  deemed  to  include,  but not be limited to, any and all instances in
which  Lessee  has  failed  to make timely payment of rent (i.e., more than five
days after the rent is due hereunder).  In case of any default, by Lessee in the
terms  of  this Lease, Lessee shall forfeit all options and privileges hereunder
forever.

32.  In  addition  to  a default under this Lease, a default of any lease, which
Lessee  is a party to, non-residential or residential, shall be deemed a default
under  each  and  every  lease,  which  Lessee  is  a  party  to.

IN  WITNESS  WHEREOF, the parties have hereunto executed this instrument for the
purpose  herein  expressed,  the  day  and  year  above  written.

Signed,  sealed  and  delivered  in  the  presence  of:

Lessee:
FOR  FTS  GROUP,  INC.
/S/  SCOTT  GALLAGHER

Lessor:
INVESTMENTS  LIMITED,  LLC
/S/  Chris  Gannon

ADDENDUM  TO  BUSINESS  LEASE

This  Addendum  is  part of that Building Lease entered into between INVESTMENTS
LIMITED ("Lessor") and SCOTT GALLAGHER AND FTS GROUP, INC. A NEVADA INCORPORATED
CORPORATION,  a  Florida  incorporated  Company  ("Lessee") for the Lease of the
property located at 7610 WEST HILLSBOROUGH AVENUE, TAMPA_, Florida, _33615_ (the
"Property").

ADDENDUM.  In  the event there is a conflict between the terms and conditions of
this  Addendum and the terms and conditions of the Business Lease, the terms and
conditions  of this Addendum shall control. The Business Lease and this Addendum
shall  hereinafter  by  referred  to  collectively  as  the  "Lease."

OPTION  TO  PURCHASE

THE  PURCHASE  PRICE  FOR  THE  ABOVE  MENTIONNED  PROPERTY IS $550,000.00 (FIVE
HUNDRED  AND  FIFTY  THOUSAND DOLLARS). THE LESSEE SHALL HAVE A PERIOD OF TWELVE
MONTHS  FROM  THE  EXECUTION  DATE  OF  THIS  DOCUMENT TO EXERCISE ITS OPTION TO
PURCHASE.  THIS NOTICE SHALL BE IN WRITING AND DELIVERED TO THE Lessor within 12
months  of  the execution of this Lease.  It is specifically understood that the
lessees  shall  not have the right to exercise the option to purchase during any
period of time that they are in default under any of the terms and conditions of
the  Lease.  The  Lessee  shall  be  given a credit of $1,000.00 for each of the
first  twelve timely lease payments paid to Lessor pursuant to the terms of this
lease,  for  a  maximum  credit of $12,000.00 which shall be applied towards the
above-mentioned  purchase  price  ($550,000.00).  If lessor recieves an offer to
purchase  the  leased  premisis  from  a  third  party during lessee's option to
purchase  period,  lessee  shall  have  the right to exercise lessee's option to
purchase  at that time.  if lessee does not exercise lessee's option to purchase
within  7  days  of  being notified by lessor of a third parties purchase offer,
then  lessee's  option  to  purchase  shall  be  terminated.

IN  WITNESS  WHEREOF, the parties have hereunto executed this instrument for the
purpose  herein  expressed,  the  day  and  year  above  written.

Signed,  sealed  and  delivered  in  the  presence  of:

Lessee:
Personally  and  Individually  Guaranteed
/s/  SCOTT  GALLAGHER
Witness  as  to  Lessee:

Lessor:
INVESTMENTS  LIMITED,  Lessor
By:  Chris  Gannon

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