Document:

INDEMNIFICATION AGREEMENT

            INDEMNIFICATION AGREEMENT, dated as of March 13, 2006, by and
between MANCHESTER INC., a Nevada corporation (the "Company"), and the director
and/or officer whose name appears on the signature page of this Agreement
("Indemnitee").

                                    RECITALS

            A.   Highly competent persons are becoming more reluctant to serve
as directors or officers or in other capacities unless they are provided with
reasonable protection through insurance or indemnification against risks of
claims and actions against them arising out of their service to and activities
on behalf of the corporations.

            B.   The Board of Directors of the Company (the "Board" or the
"Board of Directors") has determined that the Company should act to assure its
directors and officers that there will be increased certainty of such protection
in the future.

            C.   It is reasonable, prudent and necessary for the Company
contractually to obligate itself to indemnify such persons to the fullest extent
permitted by applicable law so that they will serve or continue to serve the
Company free from undue concern that they will not be so indemnified.

            D.   Indemnitee is willing to serve, to continue to serve and to
take on additional service for or on behalf of the Company on the condition that
Indemnitee be so indemnified.

                                    AGREEMENT

            In consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

            1.   Definitions. For purposes of this Agreement:

            (a)  "Affiliate" shall mean any corporation, partnership, joint
venture, trust or other enterprise in respect of which the Indemnitee is or was
or will be serving as a director, officer, advisory director or Board Committee
member at the request of the Company, and including, but not limited to, any
employee benefit plan of the Company or any of the foregoing.

            (b)  "Disinterested Director" shall mean a director of the Company
who is not or was not a party to the Proceeding in respect of which
indemnification is being sought by Indemnitee.

            (c)  "Expenses" shall include all attorneys' fees and costs,
retainers, court costs, transcripts, fees of experts, witness fees, travel
expenses, duplicating costs, printing and binding costs, telephone charges,
postage, delivery service fees and all other disbursements or expenses incurred
in connection with asserting or defending claims.

<PAGE>

            (d)  "Independent Counsel" shall mean a law firm or lawyer that
neither is presently nor in the past five years has been retained to represent:
(i) the Company or Indemnitee in any matter material to any such party or (ii)
any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall
not include any firm or person who, under the applicable standards of
professional conduct then prevailing, would have a conflict of interest in
representing any of the Company or Indemnitee in an action to determine
Indemnitee's right to indemnification under this Agreement. All Expenses of the
Independent Counsel incurred in connection with acting pursuant to this
Agreement shall be borne by the Company.

            (e)  "Losses" shall mean all losses, claims, liabilities, judgments,
fines, penalties and amounts paid in settlement in connection with any
Proceeding.

            (f)  "Proceeding" includes any action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any other
proceeding whether civil, criminal, administrative or investigative; provided,
however, that the term "Proceeding" shall include any action instituted by an
Indemnitee (other than an action to enforce indemnification rights under this
Agreement) only if such action is authorized by the Board of Directors.

      2.   Service by Indemnitee. Indemnitee agrees to begin or continue to
serve the Company or an Affiliate as a director and/or officer. Notwithstanding
anything contained herein, this Agreement shall not create a contract of
employment between the Company and Indemnitee, and the termination of
Indemnitee's relationship with the Company or an Affiliate by either party
hereto shall not be restricted by this Agreement.

      3.   Indemnification. The Company agrees to indemnify Indemnitee for, and
hold Indemnitee harmless from and against, any Losses or Expenses at any time
incurred by or assessed against Indemnitee arising out of or in connection with
the service of Indemnitee as a director, advisory director, Board Committee
member, officer, employee or agent of the Company or of an Affiliate
(collectively referred to as an "Officer or Director of the Company or of an
Affiliate"), whether the basis of such proceeding is alleged action in an
official capacity or in any other capacity while serving as an Officer or
Director of the Company or of an Affiliate, to the fullest extent permitted by
the laws of the State of Nevada in effect on the date hereof or as such laws may
from time to time hereafter be amended to increase the scope of such permitted
indemnification. Without diminishing the scope of the indemnification provided
by this Section 3, the rights of indemnification of Indemnitee provided
hereunder shall include but shall not be limited to those rights set forth
hereinafter.

      4.   Action or Proceeding Other Than an Action by or in the Right of the
Company. Indemnitee shall be entitled to the indemnification rights provided
herein if Indemnitee is a person who was or is made a party or is threatened to
be made a party to any pending, completed or threatened Proceeding, other than
an action by or in the right of the Company, by reason of (a) the fact that
Indemnitee is or was an Officer or Director of the Company or of an Affiliate or
(b) anything done or not done by Indemnitee in any such capacity. Pursuant to
this Section, Indemnitee shall be indemnified against Losses or Expenses
incurred by Indemnitee or on Indemnitee's behalf in connection with any
Proceeding, if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the Company
and, with respect to any criminal Proceeding, had no reasonable cause to believe
his conduct was unlawful.

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<PAGE>

      5.   Actions by or in the Right of the Company. Indemnitee shall be
entitled to the indemnification rights provided herein if Indemnitee is a person
who was or is made a party or is threatened to be made a party to any pending,
completed or threatened Proceeding brought by or in the right of the Company to
procure a judgment in its favor by reason of (a) the fact that Indemnitee is or
was an Officer or Director of the Company or of an Affiliate or (b) anything
done or not done by Indemnitee in any such capacity. Pursuant to this Section,
Indemnitee shall be indemnified against Losses or Expenses actually and
reasonably incurred by Indemnitee or on Indemnitee's behalf in connection with
any Proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company. Notwithstanding the foregoing provisions of this Section, no such
indemnification shall be made in respect of any claim, issue or matter as to
which Nevada law expressly prohibits such indemnification by reason of an
adjudication of liability of Indemnitee to the Company; provided, however, that
in such event such indemnification shall nevertheless be made by the Company to
the extent that the courts of the State of Nevada or the court in which such
action or suit was brought shall determine equitable under the circumstances.

      6.   Indemnification for Losses and Expenses of Party Who is Wholly or
Partly Successful. Notwithstanding any provision of this Agreement, to the
extent that Indemnitee has been wholly successful on the merits or otherwise
absolved in any Proceeding on any claim, issue or matter, Indemnitee shall be
indemnified against all Losses or Expenses actually and reasonably incurred by
Indemnitee or on Indemnitee's behalf in connection therewith. If Indemnitee is
not wholly successful in such Proceeding but is successful, on the merits or
otherwise, as to one or more but less than all claims, issues or matters in such
Proceeding, the Company agrees to indemnify Indemnitee, to the maximum extent
permitted by law, against all Losses and Expenses incurred by Indemnitee in
connection with each successfully resolved claim, issue or matter. In any review
or Proceeding to determine the extent of indemnification, the Company shall bear
the burden of proving any lack of success and which amounts sought in indemnity
are allocable to claims, issues or matters which were not successfully resolved.
For purposes of this Section and without limitation, the termination of any such
claim, issue or matter by dismissal with or without prejudice shall be deemed to
be a successful resolution as to such claim, issue or matter.

      7.   Payment for Expenses of a Witness. Notwithstanding any other
provision of this Agreement, to the extent that Indemnitee is, by reason of the
fact that Indemnitee is or was an Officer or Director of the Company or of an
Affiliate, a witness in any Proceeding, the Company agrees to pay to Indemnitee
all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's
behalf in connection therewith.

                                       3
<PAGE>

      8.   Advancement of Expenses and Costs. All Expenses incurred by or on
behalf of Indemnitee (or reasonably expected by Indemnitee to be incurred by
Indemnitee within three months) in connection with any Proceeding shall be paid
promptly by the Company, and in any event in advance of the final disposition of
such Proceeding within five (5) business days after the receipt by the Company
of a statement or statements from Indemnitee requesting from time to time such
advance or advances, whether or not a determination to indemnify has been made
under Section 9. Such statement or statements shall evidence such Expenses
incurred (or reasonably expected to be incurred) by Indemnitee in connection
therewith and shall include or be accompanied by a written undertaking by or on
behalf of Indemnitee to repay such amount if it shall ultimately be determined
that Indemnitee is not entitled to be indemnified therefor pursuant to the terms
of this Agreement. The right to indemnification of advances as granted by this
Section 8 shall be enforceable by the director or officer in any court of
competent jurisdiction, if the Company denies such request, in whole or in part,
or if no disposition thereof is made within five (5) business days. Such
person's costs and expenses incurred in connection with successfully
establishing his/her right to indemnification, in whole or in part, in any such
action shall also be indemnified by the Company. It shall be a defense to any
such action seeking an adjudication or award in arbitration pursuant to this
Agreement (other than an action brought to enforce a claim for the advance of
costs, charges and expenses under this Section 8 where the required undertaking,
if any, has been received by the Company) that the claimant has not met the
standard of conduct set forth in the laws of Nevada, as the same exists or
hereafter may be amended (but, in the case of any such amendment, only to the
extent that such amendment permits the Company to provide broader
indemnification rights than said law permitted the Company to provide prior to
such amendment), but the burden of proving such defense shall be on the Company.
Neither the failure of the Company (including its Board of Directors, its
independent legal counsel and its stockholders) to have made a determination
prior to the commencement of such action that indemnification of the claimant is
proper in the circumstances because he/she has met the applicable standard of
conduct set forth in the laws of Nevada, as the same exists or hereafter may be
amended (but, in the case of any such amendment, only to the extent that such
amendment permits the Company to provide broader indemnification rights that
said law permitted the Company to provide prior to such amendment), nor the fact
that there has been an actual determination by the Company (including its Board
of Directors, its independent legal counsel and its stockholders) that the
claimant has not met such applicable standard of conduct, shall be a defense to
any action brought by Indemnitee in respect of the Company's obligation to
advance payment for coverage of Expenses or create a presumption that Indemnitee
has not met the applicable standard of conduct.

      9.   Procedure for Determination of Entitlement to Indemnification. (a)
When seeking indemnification under this Agreement (which shall not include in
any case the right of Indemnitee to receive payments pursuant to Section 7 and
Section 8 hereof, which shall not be subject to this Section 9), Indemnitee
shall submit a written request for indemnification to the Company. Such request
shall include documentation or information which is reasonably necessary for the
Company to make a determination of Indemnitee's entitlement to indemnification
hereunder and which is reasonably available to Indemnitee. Determination of
Indemnitee's entitlement to indemnification shall be made promptly, but in no
event later than 60 days after receipt by the Company of Indemnitee's written
request for indemnification. The Secretary of the Company shall, promptly upon
receipt of Indemnitee's request for indemnification, advise the Board that
Indemnitee has made such request for indemnification.

                                       4
<PAGE>

            (b)  The entitlement of Indemnitee to indemnification under this
Agreement in respect of any pending, contemplated or threatened Proceeding shall
be determined in the specific case by (a) the Board of Directors by a majority
vote of those directors who were not party to such Proceeding, whether or not
they constitute a quorum of the Board of Directors, or (b) if such a quorum is
not obtainable, or if a quorum of disinterested directors so directs, by
Independent Counsel in a written opinion, or (c) by the stockholders.

            (c)  In the event the determination of entitlement is to be made by
Independent Counsel, such Independent Counsel shall be selected by the Board and
approved by Indemnitee. Upon failure of the Board and the Board of Directors to
so select such Independent Counsel or upon failure of Indemnitee to so approve,
such Independent Counsel shall be selected by the President of the Association
of the Bar of the City of New York.

            (d)  If the determination made pursuant to Section 9(b) is that
Indemnitee is not entitled to indemnification to the full extent of Indemnitee's
request, Indemnitee shall have the right to seek entitlement to indemnification
in accordance with the procedures set forth in Section 10 hereof.

            (e)  If the person or persons empowered pursuant to Section 9(b)
hereof to make a determination with respect to entitlement to indemnification
shall have failed to make the requested determination within 60 days after
receipt by the Company of such request, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee
shall be absolutely entitled to such indemnification, absent (i)
misrepresentation by Indemnitee of a material fact in the request for
indemnification or (ii) a final judicial determination that all or any part of
such indemnification is expressly prohibited by law.

            (f)  The termination of any Proceeding by judgment, order,
settlement or conviction, or upon a plea of nolo contendere or its equivalent,
shall not, of itself, adversely affect the rights of Indemnitee to
indemnification hereunder, except as may be specifically provided herein, or
create a presumption that Indemnitee did not act in good faith and in a manner
which Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company or create a presumption that (with respect to any
criminal action or Proceeding) Indemnitee had reasonable cause to believe that
Indemnitee's conduct was unlawful.

            (g)  For purposes of any determination of good faith hereunder,
Indemnitee shall be deemed to have acted in good faith if in taking an action
Indemnitee relied on the records or books of account of the Company or an
Affiliate, including financial statements, or on information supplied to
Indemnitee by the officers of the Company or an Affiliate in the course of their
duties, or on the advice of legal counsel for the Company or an Affiliate or on
information or records given or reports made to the Company or an Affiliate by
an independent certified public accountant or by an appraiser or other expert
selected with reasonable care by the Company or an Affiliate. The Company shall
have the burden of establishing the absence of good faith. The provisions of
this Section 9(g) shall not be deemed to be exclusive or to limit in any way the
other circumstances in which the Indemnitee may be deemed to have met the
applicable standard of conduct set forth in this Agreement.

                                       5
<PAGE>

            (h)  The knowledge and/or actions, or failure to act, of any
director, officer, agent or employee of the Company or an Affiliate shall not be
imputed to Indemnitee for purposes of determining the right to indemnification
under this Agreement.

      10.   Remedies in Cases of Determination Not to Indemnify or to Advance
Expenses. (a) In the event that (i) a determination is made that Indemnitee is
not entitled to indemnification hereunder, (ii) advances are not made pursuant
to Section 8 hereof or (iii) payment has not been timely made following a
determination of entitlement to indemnification pursuant to Section 9 hereof,
Indemnitee shall be entitled to seek an adjudication in an appropriate court of
the State of Nevada or any other court of competent jurisdiction as to
Indemnitee's entitlement to such indemnification or advance.

            (b)  In the event a determination has been made in accordance with
the procedures set forth in Section 9 hereof, in whole or in part, that
Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration referred to in paragraph (a) of this Section 10 shall be de novo and
Indemnitee shall not be prejudiced by reason of any such prior determination
that Indemnitee is not entitled to indemnification, and the Company shall bear
the burdens of proof specified in paragraphs 6 and 9 hereof in such proceeding.

            (c)  If a determination is made or deemed to have been made pursuant
to the terms of Section 9 or 10 hereof that Indemnitee is entitled to
indemnification, the Company shall be bound by such determination in any
judicial proceeding or arbitration in the absence of (i) a misrepresentation of
a material fact by Indemnitee or (ii) a final judicial determination that all or
any part of such indemnification is expressly prohibited by law.

            (d)  The Company and Indemnitee agree that they shall be precluded
from asserting that the procedures and presumptions of this Agreement are not
valid, binding and enforceable. The Company and Indemnitee further agree to
stipulate in any such court that the Company and Indemnitee are bound by all of
the provisions of this Agreement and are precluded from making any assertion to
the contrary.

            (e)  To the extent deemed appropriate by the court, interest shall
be paid by the Company to Indemnitee at a reasonable interest rate for amounts
which the Company indemnifies or is obliged to indemnify the Indemnitee for the
period commencing with the date on which Indemnitee requested indemnification
(or reimbursement or advance of an Expense) and ending with the date on which
such payment is made to Indemnitee by the Company.

      11.   Expenses Incurred by Indemnitee to Enforce this Agreement. All
Expenses incurred by Indemnitee in connection with the preparation and
submission of Indemnitee's request for indemnification hereunder shall be borne
by the Company. In the event that Indemnitee is a party to or intervenes in any
proceeding in which the validity or enforceability of this Agreement is at issue
or seeks an adjudication to enforce Indemnitee's rights under, or to recover
damages for breach of, this Agreement, Indemnitee, if Indemnitee prevails in
whole in such action, shall be entitled to recover from the Company, and shall
be indemnified by the Company against, any Expenses incurred by Indemnitee. If
it is determined that Indemnitee is entitled to indemnification for part (but
not all) of the indemnification so requested, Expenses incurred in seeking
enforcement of such partial indemnification shall be reasonably prorated among
the claims, issues or matters for which the Indemnitee is entitled to
indemnification and for claims, issues or matters for which the Indemnitee is
not so entitled.

                                       6
<PAGE>

      12.   Non-Exclusivity. The rights of indemnification and to receive
advances as provided by this Agreement shall not be deemed exclusive of any
other rights to which Indemnitee may at any time be entitled under or by reason
of applicable law, any certificate of incorporation or by-laws, any agreement,
any vote of stockholders or any resolution of directors or otherwise. To the
extent Indemnitee would be prejudiced thereby, no amendment, alteration,
rescission or replacement of this Agreement or any provision hereof shall be
effective as to Indemnitee with respect to any action taken or omitted by such
Indemnitee in Indemnitee's position with the Company or an Affiliate or any
other entity which Indemnitee is or was serving at the request of the Company
prior to such amendment, alteration, rescission or replacement.

      13.   Duration of Agreement. This Agreement shall apply to any claim
asserted and any Losses and Expenses incurred in connection with any claim
asserted on or after the effective date of this Agreement and shall continue
until and terminate upon the later of: (a) 10 years after Indemnitee has ceased
to occupy any of the positions or have any of the relationships described in
Sections 3, 4 or 5 of this Agreement; or (b) one year after the final
termination of all pending or threatened Proceedings of the kind described
herein with respect to Indemnitee. This Agreement shall be binding upon the
Company and its successors and assigns and shall inure to the benefit of
Indemnitee and Indemnitee's spouse, assigns, heirs, devisee, executors,
administrators or other legal representatives.

      14.   Severability. Should any part, term or condition hereof be declared
illegal or unenforceable or in conflict with any other law, the validity of the
remaining portions or provisions of this Agreement shall not be affected
thereby, and the illegal or unenforceable portions of the Agreement shall be and
hereby are redrafted to conform with applicable law, while leaving the remaining
portions of this Agreement intact.

      15.   Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same document.

      16.   Headings. Section headings are for convenience only and do not
control or affect meaning or interpretation of any terms or provisions of this
Agreement.

      17.   Modification and Waiver. No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by each of the
parties hereto.

      18.   No Duplicative Payment. The Company shall not be liable under this
Agreement to make any payment of amounts otherwise indemnifiable hereunder if
and to the extent that Indemnitee has otherwise actually received such payment
(net of Expenses incurred in collecting such payment) under this Agreement, any
insurance policy, contract, agreement or otherwise.

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<PAGE>

      19.   Notices. All notices, requests, demands and other communications
provided for by this Agreement shall be in writing (including telecopier or
similar writing) and shall be deemed to have been given at the time when mailed
in a registered or certified postpaid envelope in any general or branch office
of the United States Postal Service, or sent by Federal Express or other similar
overnight courier service, addressed to the address of the parties stated below
or to such changed address as such party may have fixed by notice or, if given
by telecopier, when such telecopy is transmitted and the appropriate answer back
is received.

                  (a) If to Indemnitee, to the address of record on file with
                      the Company.

                  (b) If to the Company to:

                         MANCHESTER INC.
                         100 Crescent Court, 7th Floor
                         Dallas, Texas 75201

                  with a copy to:

                         Wuersch & Gering LLP
                         100 Wall Street, 21st Floor
                         New York, NY 10005
                         Attention:  Travis L. Gering, Esq.
                         Phone:  (212) 509-5050
                         Fax:      (212) 509-9559

      20.   GOVERNING LAW. THE PARTIES AGREE THAT THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF
THE STATE OF NEVADA WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES
THEREOF.

      21.   Entire Agreement. Subject to the provisions of Section 12 hereof,
this Agreement constitutes the entire understanding between the parties and
supersedes all proposals, commitments, writings, negotiations and
understandings, oral and written, and all other communications between the
parties relating to the subject matter of this Agreement. This Agreement may not
be amended or otherwise modified except in writing duly executed by all of the
parties. A waiver by any party of any breach or violation of this Agreement
shall not be deemed or construed as a waiver of any subsequent breach or
violation thereof.

                           [Signature Page to follow]

                                       8
<PAGE>

            IN WITNESS WHEREOF, the parties hereto have executed this
Indemnification Agreement as of the date first above written.

                           MANCHESTER INC.

                              By:  /s/ Richard Gaines
                                   -------------------------------------------
                                   Name: Richard Gaines
                                   Title:   Corporate Secretary and Director

                           INDEMNITEE:

                           /s/ Norman Thoennes
                           ---------------------------------------------------
                           Name:      Norman Thoennes
                           Title:     Consultant

                                       9EMPLOYMENT AGREEMENT

            EMPLOYMENT AGREEMENT, dated April 20, 2006 (the "Agreement"), by and
among  Manchester Inc., a Nevada  corporation  (the "Company"),  and Lawrence A.
Taylor (the "Executive").

            WHEREAS,  the Company  desires to initially  engage Mr.  Taylor as a
consultant to assist the Company with the development of its Buy Here / Pay Here
car business;

            WHEREAS,  upon the effectiveness of the Company  obtaining  adequate
directors and officers'  insurance  (the "D&O Effective  Date"),  Mr. Taylor has
agreed to commence service as Chief Financial Officer of the Company;

            NOW  THEREFORE,  in  consideration  of the  premises  and the mutual
agreements made herein, the Company and Mr. Taylor agree as follows:

            1.  Employment;  Duties.  The Company  shall engage the Executive to
serve as a  consultant  to the Company  and as of the D&O  Effective  Date,  the
Company shall employ Mr. Taylor as Chief Financial  Officer of the Company.  The
Executive  shall  serve  the  Company  in  such  respective   capacity  for  the
"Engagement  Period" as defined in Section 2. The  Executive  agrees that during
the term of his employment  hereunder,  he shall devote 100% of his professional
working  time,  attention,  knowledge and  experience  and give his best effort,
skill and  abilities to promote the business and  interests of the Company.  The
precise duties, responsibilities and authority of the Executive may be expanded,
limited or  modified,  from time to time,  as  directed  by the Chief  Executive
Officer  (CEO) and subject to the policy  mandates of the Board of  Directors of
the Company or a committee  of the Board to which the Board has  delegated  such
authority  (collectively,  the "Board"). In connection with this responsibility,
the Executive will submit written reports to the CEO and the Board as reasonably
requested. The Executive agrees to faithfully and diligently perform such duties
as may from time to time be assigned to the Executive by the Board.

            2. Employment  Period.  This Agreement shall have an initial term of
two (2) years to be effective as of the date hereof and ending on April 30, 2008
(the  "Initial  Period"),  unless  sooner  terminated  in  accordance  with  the
provisions of Section 7 or Section 8. On the expiration of such Initial  Period,
this Agreement  shall  automatically  renew and continue to remain in effect for
successive one year periods,  until terminated in accordance with the provisions
of Section 7 or Section 8, unless  either  party  provides  the other party with
written notice of non-renewal  not later than 10 days prior to the expiration of
the Initial Period or the  anniversary  of such date in any  subsequent  renewal
period.  Each  effective  period of this  Agreement is referred to herein as the
"Employment Period."

            3. Compensation and Benefits.

            (a) Base  Compensation.  The Executive  shall be paid a monthly base
salary of $190,000  per annum,  payable in monthly  increments  less  applicable
statutory and regulatory  deductions (the "Base Salary").  The Base Salary shall
be  payable  each  month  in  accordance  with  the  Company's  regular  payroll
practices, as the same may be modified from time to time.

<PAGE>

            (b)  Expense  Reimbursement.  The  Executive  shall be  entitled  to
reimbursement of reasonable  out-of-pocket  expenses incurred in connection with
travel  related to the  Company's  business and affairs upon receipt of itemized
vouchers  approved in accordance  with Company  policy as in effect from time to
time.

            (c)  Benefits.  The  Executive  shall be  immediately  eligible  for
participation  in Company  benefits  that may be  available  to  employees as in
effect,  including monthly reimbursement for the Executive's monthly medical and
dental insurance premiums, up to $350 per month.

            (d)  Bonus.  The  Executive  shall  receive  an  annual  bonus to be
determined  at  the  sole   discretion  of  the  Board  of  Directors  upon  the
recommendation of the Chief Executive Officer.

            (e) Equity Compensation. The Executive shall receive warrants and or
stock  options for the purchase of shares of Company  common stock in accordance
with the terms and  conditions of the  Company's  warrants and stock option plan
for the Executive as defined in Exhibit A.

            (f)  Vacation.  The  Executive  shall be entitled to three (3) weeks
paid vacation per calendar  year,  pro-rated  with respect to the portion of the
year in which employment  commenced with the Company, in each case in accordance
with Company general policies regarding vacations.  A maximum of one week of any
accrued  but  untaken  vacation  may be carried  over and used up to nine months
after the year in which accrued,  but not thereafter.  No compensation  shall be
paid for accrued but untaken vacation.

            (g) Director & Officers  (D&O)  Insurance  Coverage.  The  Executive
shall be  entitled  to be a named  insured  under the  Company's  D&O  Insurance
coverage.  The Executive's D&O Insurance  coverage will be  non-rescindable  and
will require that the insurance  carrier reimburse the Executive for any defense
costs  incurred by the Executive  within 30 days following  notification  by the
Executive to the  insurance  carrier of such  incurred  defense  costs.  The D&O
Insurance  policy will not contain a co-insurance  provision.  The D&O Insurance
policy will not contain any exclusions  denying coverage to the Executive unless
there was "in  fact"  wrongful  conduct  on the part of the  Executive.  The D&O
Insurance policy will contain severability  language stating that conduct of any
officer or director of the Company  will not be imputed to any other  officer or
director.  The D&O insurance policy will not contain any language that would bar
coverage for any claim  "brought by an Insured  Organization".  The Company will
retain  outside  legal  counsel to review  that the D&O  insurance  policy is in
compliance with the above provisions.  The Company will obtain for the Executive
the above D&O Insurance  coverage  within 30 days  following the signing of this
Agreement  and the Company will  completely  indemnify the Executive for any and
all defense costs until the D&O coverage for the Executive is in place.

                                       2
<PAGE>

            4.  Trade  Secrets.  The  Executive  recognizes  that  it is in  the
Company's  legitimate  business  interest to restrict his  disclosure  or use of
trade  secrets  and  confidential  information  relating  to the  Company or its
affiliates for any purpose other than in connection  with his performance of his
duties to the Company.

            5.  Return  of  Documents  and  Property.  Upon  the  expiration  or
termination of the Executive's  employment with the Company, or at any time upon
the  request  of  the  Company,   the   Executive  (or  his  heirs  or  personal
representatives)  shall  deliver to the Company (a) all  documents and materials
(including,  without  limitation,  computer files)  containing Trade Secrets and
Confidential Information relating to the Company's business and affairs, and (b)
all  documents,  materials,  equipment and other  property  (including,  without
limitation,  computer files,  computer  programs,  computer  operating  systems,
computers,  printers,  scanners, pagers, telephones,  credit cards and ID cards)
belonging to the Company,  which in either case are in the  possession  or under
the control of the Executive (or his heirs or personal representatives).

            6.  Discoveries  and  Works.  All  Discoveries  and  Works  made  or
conceived by the Executive during his employment by the Company, solely, jointly
or with others, that relate to the Company's present or anticipated  activities,
or are used or useable by the Company  shall be owned by the  Company.  The term
"Discoveries  and Works"  includes,  by way of example but  without  limitation,
Trade   Secrets  and  other   Confidential   Information,   patents  and  patent
applications,  service marks, and service mark  registrations  and applications,
trade names,  copyrights  and  copyright  registrations  and  applications.  The
Executive  shall (a) promptly  notify,  make full disclosure to, and execute and
deliver any documents  requested by the Company, as the case may be, to evidence
or better assure title to Discoveries and Works in the Company, as so requested,
(b)  renounce  any and all  claims,  including  but not  limited  to  claims  of
ownership and royalty,  with respect to all  Discoveries and Works and all other
property  owned or licensed by the Company,  (c) assist the Company in obtaining
or maintaining for itself at its own expense United States and foreign  patents,
copyrights,  trade  secret  protection  or  other  protection  of  any  and  all
Discoveries and Works, and (d) promptly  execute,  whether during his employment
with the Company or thereafter, all applications or other endorsements necessary
or  appropriate  to  maintain  patents  and other  rights for the Company and to
protect  the  title  of the  Company  thereto,  including  but  not  limited  to
assignments of such patents and other rights.  Any  Discoveries and Works which,
within  one  year  after  the  expiration  or  termination  of  the  Executive's
employment with the Company, are made, disclosed, reduced to tangible or written
form or  description,  or are  reduced to practice  by the  Executive  and which
pertain  to the  business  carried  on or  products  or  services  being sold or
delivered by the Company at the time of such  termination  shall, as between the
Executive and, the Company, be presumed to have been made during the Executive's
employment by the Company.  The Executive  acknowledges that all Discoveries and
Works shall be deemed  "works made for hire" under the Copyright Act of 1976, as
amended 17 U.S.C. Sect. 101.

                                       3
<PAGE>

            7. Termination.

            (a)  Manner  of  Termination.  The  Company  and the  Executive  may
terminate this  Agreement,  with or without cause,  only in accordance  with the
provisions of this Section 7.

            (b) Termination  Without Cause. During the Employment Period, if the
Company  terminates  this Agreement  other than for cause,  the Executive  shall
receive a lump sum  payment  equivalent  to  one-half  of his twelve (12) months
salary,  plus  reimbursement of any and all expenses incurred by Executive as of
the date of notice of such  date,  plus  payment  of any and all bonus  payments
payable as of such date, and,  subject to the terms and conditions of the option
agreement  summarized in Exhibit A, all of such equity instruments that would by
their  own  terms  vest  and  become  exercisable  as of the date of  notice  of
termination  other than for cause,  shall remain so vested and  exercisable  and
non-forfeitable  by the Executive  (but in no event beyond the expiration of the
stated term of such  instrument),  and all of such  payments and vesting of such
equity  instruments shall completely and fully discharge any and all obligations
and liabilities of the Company to the Executive with respect to this Agreement.

            (c) Termination for Cause.  The Company may terminate this Agreement
for cause at any time during the Employment  Period  effective  immediately upon
giving written  notice of  termination  to the  Executive.  For purposes of this
Agreement,  "cause" shall mean,  with respect to the  Executive,  (i) any act of
fraud or  dishonesty,  willful  misconduct or negligence in connection  with the
Executive's duties, (ii) a breach by the Executive of any provision hereof or of
any  contractual  or legal  fiduciary  duty to the Company  (including,  but not
limited to, the unauthorized  disclosure of Trade Secrets or other  Confidential
Information,  non-compliance with the policies, guidelines and procedures of the
Company or engaging  during his  employment in any other  employment or business
without the express written approval of the Company's Board of Directors), (iii)
the arrest of the Executive for the commission of a felony,  whether or not such
alleged felony was committed in connection  with the Company's  business or (iv)
the   commencement  of  any  bankruptcy   proceedings   (whether   voluntary  or
involuntary),  the appointment of a trustee or receiver for the Executive or the
general assignment of the Executive's assets to his creditors.

            (d)  Termination  by Executive.  The  Executive  may terminate  this
Agreement  with or  without  cause  at any time  during  the  Employment  Period
effective  immediately upon giving written notice of termination to the Company.
For purposes of this Agreement,  with respect to the Company, "cause" shall mean
the failure to pay any amounts due Executive hereunder (and not disputed in good
faith by the Company) within two months after their due date.

            (e) Effect of Termination.  Except as otherwise  provided herein, in
the event this Agreement is terminated, the Executive's rights and the Company's
obligations  hereunder shall cease as of the effective date of the  termination,
including,  without limitation,  the right to receive Base Salary, bonus and all
other  compensation,   expense  allowance  or  benefits  provided  for  in  this
Agreement,  and the Executive shall not be entitled to any further compensation,
expense allowance,  benefits,  or severance  compensation of any kind, and shall
have no  further  right or  claim to any  compensation,  benefits  or  severance
compensation  under this  Agreement  or  otherwise  against  the  Company or its
subsidiaries and affiliates,  from and after the date of such  termination.  For
purposes  of  clarity,  in the  event of a  termination  of this  Agreement  the
Executive  shall not be  entitled  to any  bonus  other  than any bonus  payable
through the date of notice of such termination.

                                       4
<PAGE>

            (f)  Change  in  Control  Termination.   Notwithstanding  any  other
provision in this Agreement,  in the event the  Executive's  employment with the
Company  is  terminated  by the  Company  following  a Change  in  Control,  the
Executive  shall  receive  within  ten  (10)  calendar  days of  notice  of such
termination,  in lieu of the payment specified in Section 7(b) above, a lump sum
payment  equivalent to twelve (12) months salary,  plus reimbursement of any and
all expenses  incurred by Executive as of such date, plus payment in full of any
and all  prospective  annual bonus payments with respect to the next  succeeding
twelve (12) month Employment Period, and, subject to the terms and conditions of
the  option  agreement  attached  hereto  as  Exhibit  A,  all  of  such  equity
instruments  granted  therein  shall  fully  and  irrevocably  vest  and  become
exercisable and/or  non-forfeitable by the Executive until the first anniversary
of the  termination of the  Executive's  employment  (but in no event beyond the
expiration of the stated term of such instrument),  and all of such payments and
vesting of equity  instruments  shall completely and fully discharge any and all
obligations and liabilities of the Company to the Executive with respect to this
Agreement.

            (g) Survival. Any termination under this Section 7 is subject to the
provisions of Sections 18 and 20 hereof.

            (h)  Relinquishment  of Authority.  Notwithstanding  anything to the
contrary set forth herein, upon written notice to the Executive, the Company may
immediately  relieve  the  Executive  of all  his  duties  and  responsibilities
hereunder  and may relieve the  Executive  of  authority to act on behalf of, or
legally bind, the Company.

            (i) Change in Control.  For  purposes of this  Agreement  "Change in
Control" means (i) the acquisition  (by means of purchase,  merger or otherwise)
by any person or any two or more persons acting as a  partnership,  syndicate or
other  group  for  the  purpose  of  acquiring,  holding  or  disposing  of such
securities of beneficial ownership of fifty-one percent (51%) or more of the sum
of the  amount  of the  shares of  Company  common  stock  (the  "Shares")  then
outstanding,  plus any Shares which may be issued  pursuant to the conversion or
exercise of all outstanding options, rights or warrants; or (ii) the sale of all
or substantially all of the assets of the Company.  Notwithstanding  anything to
the contrary, for purposes of this Section, a person shall not be deemed to have
made an  acquisition  of  beneficial  ownership  of Shares if such  person:  (a)
acquires  beneficial  ownership of such Shares  directly  from the Company;  (b)
assumes  beneficial  ownership of more than the  permitted  percentage of Shares
solely as a result of the  acquisition of beneficial  ownership of Shares by the
Company which, by reducing the  proportional  beneficial  ownership of Shares by
other  security  holders,  increases the  proportional  beneficial  ownership of
Shares by such  person;  or (c) is (1) the Company or any  corporation  or other
person of which a majority  of its  voting  power or its  equity  securities  or
equity  interest is owned  directly or indirectly by the Company (a  "Controlled
Entity") or is owned directly or indirectly by the  stockholders  of the Company
in the same proportion as their beneficial  ownership of Shares or (2) a trustee
or other fiduciary  holding  securities under one or more employee benefit plans
or arrangements (or any trust forming a part thereof)  maintained by the Company
or any Controlled Entity.

                                       5
<PAGE>

            (j) For  purposes  of  clarity  and  notwithstanding  the  foregoing
provisions of this Section 7, the  termination  of the  Employment  Term of this
Agreement in accordance  with ordinary  termination  of this  Agreement  without
renewal shall not be deemed to be a termination  which requires any supplemental
payments,  compensation,  consideration or remuneration of any nature to be paid
to the Executive as a function of such termination.

            8. Disability; Death.

            (a) If,  prior  to the  expiration  of the  Employment  Period,  the
Executive shall be unable to perform his duties  hereunder by reason of physical
or mental  disability  for at least thirty (30)  consecutive  calendar days, the
Company  shall have the right to terminate  this  Agreement and the remainder of
the Employment  Period by giving written notice to the Executive to that effect.
Immediately  upon  the  giving  of such  notice,  the  Employment  Period  shall
terminate.

            (b) Upon termination of this Agreement pursuant to Section 8(a), the
Executive  shall (i) be paid his Base  Salary  and bonus  (if any)  through  the
effective date of such termination. All other compensation and benefits provided
for in Section 3 of this  Agreement  shall  cease upon  termination  pursuant to
Section 8(a).

            (c) In the  event  of a  dispute  as to  whether  the  Executive  is
disabled within the meaning of Section 8(a),  either party may from time to time
request a medical  examination  of the  Executive  by a doctor  appointed by the
Chief of Staff of a hospital selected by mutual agreement of the parties,  or as
the parties may otherwise  agree, and the written medical opinion of such doctor
shall be conclusive and binding upon the parties as to whether the Executive has
become  disabled and the date when such disability  arose.  The cost of any such
medical examination shall be borne by the requesting party.

            (d) If,  prior to the  expiration  of the  Employment  Period or the
termination of this Agreement,  the Executive shall die, the Executive's  estate
shall be paid his Base Salary and a pro rated  portion of his bonus (if any) and
other  compensation or expense allowance then due. Any bonus payable pursuant to
this  Section 8(c) shall be payable on the first bonus  payment  date  following
such  termination.  Except as otherwise  provided in this Section 8(d), upon the
death of the Executive,  the Employment  Period shall terminate  without further
notice and the Company shall have no further obligations  hereunder,  including,
without limitation,  obligations with respect to compensation, expense allowance
and  benefits  provided  for in Section 3 of this  Agreement,  other than as set
forth in the immediately preceding sentence.

            (e)  Any  termination  under  this  Section  8  is  subject  to  the
provisions of Section 18 hereof.

            9. No Conflicts. The Executive has represented and hereby represents
to the Company and its affiliates  that the execution,  delivery and performance
by the Executive of this Agreement do not conflict with or result in a violation
or breach of, or constitute  (with or without notice or lapse of time or both) a
default under any contract, agreement or understanding, whether oral or written,
to which  the  Executive  is a party or of which the  Executive  is or should be
aware and that there are no restrictions,  covenants,  agreements or limitations
on his right or ability to enter into and perform  the terms of this  Agreement,
and agrees to indemnify  and save the Company and its  affiliates  harmless from
any liability, cost or expense, including attorney's fees, based upon or arising
out of any such restrictions,  covenants, agreements, or limitations that may be
found to exist.

                                       6
<PAGE>

            For purposes of this Agreement, "affiliate" shall include any person
or entity directly or indirectly controlled by or controlling the Company.

            10. Non-competition. Except as authorized by the Board of Directors,
during the Engagement Period Executive will not (except as an officer, director,
stockholder,  employee,  agent or consultant of the Company or any subsidiary or
affiliate thereof)  directly,  own, manage,  operate,  join, or have a financial
interest in, control or participate in the ownership,  management,  operation or
control of, or be employed as an employee, agent or consultant,  or in any other
individual  or  representative  capacity for any business  which is directly and
geographically competitive within a 25 mile radius of any business carried on or
planned  to be  carried  on by  the  Company  or  any  of  its  subsidiaries  or
affiliates.

            11.  Non-Solicitation.  During the Restricted Period, the Executive,
directly or indirectly,  whether for his account or for the account of any other
individual  or  entity,  shall not  solicit or canvas  the  trade,  business  or
patronage of, or sell to, any individuals or entities that were either customers
of the Company  during the time the  Executive  was employed by the Company,  or
prospective  customers  with  respect to whom a sales  effort,  presentation  or
proposal was made by the Company or its  affiliates,  during the one year period
prior to the  termination or expiration of this  Agreement,  as the case may be.
The Executive  further agrees that during the Restricted  Period,  he shall not,
directly or indirectly,  (i) solicit,  induce, enter into any agreement with, or
attempt to influence  any  individual  who was an employee or  consultant of the
Company at any time during the time the  Executive  was employed by the Company,
to terminate his or her  employment  relationship  with the Company or to become
employed by the Executive or any  individual or entity by which the Executive is
employed  or (ii)  interfere  in any  other  way with the  employment,  or other
relationship, of any employee or consultant of the Company or its affiliates.

            12.  Enforcement.  The  Executive  agrees  that  any  breach  of the
provisions  of Sections 4, 5, 6, 10 and 11 hereof  would cause  substantial  and
irreparable harm, not readily ascertainable or compensable in terms of money, to
the Company for which  remedies at law would be inadequate and that, in addition
to any other  remedy to which the  Company  may be entitled at law or in equity,
the Company shall be entitled to  temporary,  preliminary  and other  injunctive
relief  in the  event  the  Executive  violates  or  threatens  to  violate  the
provisions of Sections 4, 5, 6, 10 or 11 hereof, as well as damages,  including,
without limitation  consequential  damages,  and an equitable  accounting of all
earnings, profits and benefits arising from such violation, in each case without
the need to post  any  security  or  bond.  Nothing  herein  contained  shall be
construed as  prohibiting  the Company  from  pursuing,  in addition,  any other
remedies available to the Company for such breach or threatened breach. A waiver
by the  Company of any breach of any  provision  hereof  shall not operate or be
construed as a waiver of a breach of any other provision of this Agreement or of
any subsequent breach by the Executive.

                                       7
<PAGE>

            13.   Determinations  by  the  Company.   All   determinations   and
calculations  with respect to this  Agreement  shall be made by the Board or any
committee  thereof to which the Board has delegated such authority in accordance
with  applicable  law,  the  certificate  of  incorporation  and  by-laws of the
Company, in its sole discretion,  and shall be final,  conclusive and binding on
all persons,  including  the Executive  and the personal  representative  of his
estate.

            14.  Successors  and  Assigns.  This  Agreement  shall  inure to the
benefit  of and  shall be  binding  upon (i) the  Company,  its  successors  and
assigns,  and any company with which the Company may merge or  consolidate or to
which the Company may sell  substantially all of its assets,  and (ii) Executive
and his executors,  administrators,  heirs and legal representatives.  Since the
Executive's  services are personal and unique in nature,  the  Executive may not
transfer,  sell or otherwise  assign his rights,  obligations  or benefits under
this Agreement.

            15.  Notices.  Any notice required or permitted under this Agreement
shall be  deemed  to have  been  effectively  made or given  if in  writing  and
personally  delivered,  mailed properly addressed in a sealed envelope,  postage
prepaid by  certified or  registered  mail,  delivered by a reputable  overnight
delivery  service  or sent by  facsimile.  Unless  otherwise  changed by notice,
notice shall be properly  addressed to the Executive if addressed to the address
of record then on file with the Company;  and properly  addressed to the Company
if addressed to:

                         MANCHESTER INC.
                         100 Crescent Court, 7th Floor
                         Dallas, Texas 75201
                         Attention:  Board of Directors

                                    with a copy to:

                                    Wuersch & Gering LLP
                                    100 Wall Street, 21st Floor
                                    New York, New York 10005
                                    Telephone:  212-509-5050
                                    Telecopier:  212-509-9559
                                    Attention:  Travis L. Gering, Esq.

            16.  Severability.  It  is  expressly  understood  and  agreed  that
although the Company and the Executive  consider the  restrictions  contained in
this  Agreement to be reasonable and necessary for the purpose of preserving the
goodwill,  proprietary rights and going concern value of the Company, if a final
judicial  determination  is  made  by  a  court  having  jurisdiction  that  any
restriction  contained in this  Agreement  is invalid,  the  provisions  of this
Agreement  shall not be rendered void but shall be deemed amended to apply as to
such  maximum  time and  territory  and to such  other  extent as such court may
judicially determine or indicate to be reasonable.  Alternatively,  if the court
referred to above finds that any restriction  contained in this Agreement or any
remedy provided herein is  unenforceable,  and such restriction or remedy cannot
be  amended  so as to make it  enforceable,  such  finding  shall not affect the
enforceability  of  any of  the  other  restrictions  contained  therein  or the
availability  of any other remedy.  The provisions of this Agreement shall in no
respect  limit or  otherwise  affect the  Executive's  obligations  under  other
agreements with the Company.

                                       8
<PAGE>

            17.  Counterparts.   This  Agreement  may  be  executed  in  several
counterparts,  each of which shall be deemed to be an original  but all of which
together will constitute one and the same instrument.

            18. Effects of Termination. Notwithstanding anything to the contrary
contained  herein,  if this  Agreement  is  terminated  pursuant to Section 7 or
Section 8 or expires by its terms,  the  provisions of Sections 4, 5, 6, 10, 11,
12, 13, 14, 15, 16, 19, 20 and this Section 18 shall  continue in full force and
effect.

            19. Miscellaneous.  This Agreement constitutes the entire agreement,
and  supersedes  all prior  agreements,  of the parties  hereto  relating to the
subject matter hereof, and there are no written or oral terms or representations
made by either party other than those contained herein. This Agreement cannot be
modified,  altered or amended except by a writing signed by all the parties.  No
waiver by either party of any  provision  or condition of this  Agreement at any
time shall be deemed a waiver of such  provision  or  condition  at any prior or
subsequent  time or of any other provision or condition at the same or any prior
or subsequent time.

            20. Governing Law; Arbitration.

            (a) This Agreement  shall be governed by and construed in accordance
with the  domestic  laws of the State of  Nevada  without  giving  effect to any
choice of law or  conflict  of law  provision  or rule  (whether of the State of
Nevada or any other  jurisdiction)  that would cause the application of the laws
of any jurisdiction other than the State of Nevada.

            (b) The parties  hereto agree to submit to  arbitration  any and all
matters  in  dispute  or in  controversy  among  them  concerning  the terms and
provisions  of this  Agreement.  All such  disputes and  controversies  shall be
determined and adjudged by the decision of an arbitrator  (hereinafter sometimes
called the  "Arbitrator")  selected by mutual agreement of the parties hereto or
if the parties hereto fail to reach agreement on the Arbitrator  within ten days
after a party  has  notified  the  other of its  interest  to submit a matter to
arbitration,  the  Arbitrator  shall be  selected  by the  American  Arbitration
Association  upon  application  made  to it for  such  purpose  by the  parties.
Arbitration shall take place in Dallas, Texas or such other place as the parties
hereto may agree in writing. The Arbitrator shall reach and render a decision in
writing with respect to the amount,  if any, of payment  respecting the disputed
matter.  The  arbitration  proceedings  shall  be held in  accordance  with  the
applicable  rules of the American  Arbitration  Association.  Any award rendered
shall be final and  conclusive  upon the parties and  adjudgment  thereon may be
entered  in  the  highest  court  of  the  forum,   state  or  federal,   having
jurisdiction.  The fees and expenses of the Arbitrator  and the respective  fees
and  expenses  of the parties  hereto in  connection  with any such  arbitration
(including,  without  limitation,  reasonable fees and expenses of legal counsel
and  consultants)  shall be paid by the party  against  whom a  decision  by the
Arbitrator is rendered.

                                       9
<PAGE>

            IN WITNESS  WHEREOF,  the  parties  have  executed  this  Employment
Agreement as of the day and year first above written.

                          /s/ Lawrence A. Taylor
                          ----------------------------------------------------
                          LAWRENCE A. TAYLOR

                          MANCHESTER INC.

                             By:  Richard Gaines
                                  --------------------------------------------
                                  Name: Richard Gaines
                                  Title:   Corporate Secretary and Director

                                       10
<PAGE>

                                                                       Exhibit A

                           [Option Agreement Attached]

                                       11

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