Document:

TEMTEX INDUSTRIES, INC.
                   INVESTORS' RIGHTS AGREEMENT

     This Investors' Rights Agreement (this "Agreement") is made
and entered into as of the 19th day of July, 2002 by and among
Temtex Industries, Inc., a Delaware corporation (the "Company"),
and the persons identified on the signature page(s) hereof
(individually, an "Investor" and collectively, the "Investors").

                            Recitals

     WHEREAS, the Investors hold all of the Company's Convertible
Subordinated Notes due July 19, 2007 (the "Notes"); and

     WHEREAS, the Investors are parties to the Note Purchase
Agreement dated as of the date hereof between the Company and the
Investors (the "Note Purchase Agreement"), under which certain of
the Company's and such Investors' obligations are conditioned
upon the execution and delivery of this Agreement;

     NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth herein, the parties hereto further agree as
follows:

1.   RESTRICTIONS ON TRANSFERABILITY OF SECURITIES; REGISTRATION
     RIGHTS.

     1.1  Certain Definitions. As used in this Agreement, the
following terms shall have the meanings set forth below:

          (a)  "Commission" shall mean the Securities and Exchange
Commission or any other federal agency at the time administering
the Securities Act.

          (b)  "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, or any similar successor federal statute and
the rules and regulations thereunder, all as the same shall be in
effect from time to time.

          (c)  "Holder" shall mean any Investor who holds Registrable
Securities and any holder of Registrable Securities to whom the
registration rights conferred by this Agreement have been
transferred in compliance herewith.

          (d)  "Other Stockholders" shall mean persons other than Holders
who, by virtue of agreements with the Company, are entitled to
include their securities in certain registrations to be made by
the Company.

          (e)  "Registrable Securities" shall mean (i) shares of Common
Stock issued or issuable pursuant to the conversion of the Notes
and (ii) any Common Stock issued as a dividend or other
distribution with respect to or in exchange for or in replacement
of the shares referenced in clause (i) above, provided, however,
that Registrable Securities shall not include any shares of
Common Stock which have previously been registered or which have
been sold to the public either pursuant to a registration
statement or Rule 144, or which have been sold in a private
transaction in which the transferor's rights under this Agreement
are not assigned.

<PAGE>

          (f)  The terms "register," "registered" and "registration" shall
refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act and
applicable rules and regulations thereunder, and the declaration
or ordering of the effectiveness of such registration statement.

          (g)  "Registration Expenses" shall mean all expenses incurred in
effecting any registration pursuant to this Agreement, including,
without limitation, all registration, qualification, and filing
fees, printing expenses, escrow fees, fees and disbursements of
counsel for the Company, blue sky fees and expenses, and expenses
of any regular or special audits incident to or required by any
such registration, but shall not include Selling Expenses, or
fees and disbursements of counsel for the Holders, which shall be
paid in any event by the Holders.

          (h)  "Restricted Securities" shall mean any Registrable
Securities required to bear a restrictive legend under the
Securities Act.

          (i)  "Rule 144" shall mean Rule 144 as promulgated by the
Commission under the Securities Act, as such Rule may be amended
from time to time, or any similar successor rule that may be
promulgated by the Commission.

          (j)  "Securities Act" shall mean the Securities Act of 1933, as
amended, or any similar successor federal statute and the rules
and regulations thereunder, all as the same shall be in effect
from time to time.

          (k)  "Selling Expenses" shall mean all underwriting discounts,
selling commissions and stock transfer taxes applicable to the
sale of Registrable Securities and fees and disbursements of
counsel for any Holder.

          (l)  "Voting Agreement" shall mean that certain Voting Agreement
entered into as of even date herewith among the Company, James E.
Upfield and the Investors providing, among other things, for the
selection of certain directors of the Company.

     1.2  Company Registrations.

          (a)  If the Company shall determine to register any of its
securities either for its own account or the account of a
security holder or holders exercising their respective demand
registration rights, other than a registration relating solely to
employee benefit plans, or a registration relating to a corporate
reorganization or other transaction on Form S-4 (or other similar
form then in effect relating to such transactions), or a
registration on any registration form that does not permit
secondary sales, the Company will:

               (i)  promptly give to each Holder written notice thereof; and

                               -2-

<PAGE>

               (ii) use its best efforts to include in such registration (and
          any  related qualification under blue sky laws or other
          compliance) and in any underwriting involved therein, all the
          Registrable Securities specified in a written request or
          requests, made by any Holder and received by the Company within
          ten (10) days after the written notice from the Company described
          in clause (i) above is mailed or delivered by the Company. Such
          written request may specify all or a part of a Holder's
          Registrable Securities.

          (b)  If the registration of which the Company gives notice is for
a registered public offering involving an underwriting, the
Company shall so advise the Holders as a part of the written
notice given pursuant to Section l.2(a)(i). In such event, the
right of any Holder to registration pursuant to this Section 1.2
shall be conditioned upon such Holder's participation in such
underwriting and the inclusion of such Holder's Registrable
Securities in the underwriting to the extent provided herein. All
Holders proposing to distribute their securities through such
underwriting shall (together with the Company and the other
holders of securities of the Company with registration rights to
participate therein distributing their securities through such
underwriting) enter into an underwriting agreement in customary
form with the representative of the underwriter or underwriters
selected by the Company.

          (c)  Notwithstanding any other provision of this Section 1.2, if
the representative of the underwriters advises the Company in
writing that marketing factors require a limitation on the number
of shares to be underwritten, the representative may (subject to
the limitations set forth below) exclude all Registrable
Securities from, or limit the number of Registrable Securities to
be included in, the registration and underwriting. The Company
shall so advise all Holders of securities requesting
registration, and the amount of securities that are entitled to
be included in the registration and underwriting shall be
allocated:  first to the Company for securities being sold for
its own account, second to the Holders for securities being sold
for their own account (or, pro rata to the extent less than the
entire amount can be sold) and third, to the Other Stockholders.
The Company agrees that it shall not grant any registration
rights inconsistent with this ranking without the prior written
consent of the Investors holding more than one-half of the
Registrable Securities. If any person does not agree to the terms
of any such underwriting, he shall be excluded therefrom by
written notice from the Company or the underwriter. Any
Registrable Securities or other securities excluded or withdrawn
from such underwriting shall be withdrawn from such registration.

          (d)  If securities are so withdrawn from the registration and if
the number of shares of Registrable Securities to be included in
such registration was previously reduced as a result of marketing
factors, the Company shall then offer to all persons who have
retained the right to include securities in the registration the
right to include additional securities in the registration in an
aggregate amount equal to the number of shares so withdrawn, with
such shares to be allocated among the persons requesting
additional inclusion in accordance with the terms hereof.

     1.3  Expenses of Registration. All Registration Expenses incurred
in connection with any registration, qualification or compliance
pursuant to Section 1.2 hereof shall be borne by the Company. All
Selling Expenses relating to securities so registered shall be
borne by the Holders of such securities pro rata on the basis of
the number of shares of securities so registered on their behalf,
as shall any other expenses in connection with the registration
required to be borne by the Holders of such securities.

                               -3-

<PAGE>

     1.4  Registration Procedures. In the case of each registration
effected by the Company pursuant to this Agreement, the Company
will keep each Holder advised as to the initiation of each
registration and as to the completion thereof. At its expense,
the Company will use its best efforts to:

          (a)  Keep such registration effective for a period of one hundred
twenty (120) days or until the Holder or Holders have completed
the distribution described in the registration statement relating
thereto, whichever first occurs; provided, however, that (i) such
120-day period shall be extended for a period of time equal to
the period the Holder refrains from selling any securities
included in such registration at the request of an underwriter of
Common Stock (or other securities) of the Company; and (ii) in
the case of any registration of Registrable Securities on Form S-
3 which are intended to be offered on a continuous or delayed
basis, such 120-day period shall be extended, if necessary, to
keep the registration statement effective until all such
Registrable Securities are sold, however in no event longer than
one year from the effective date of the registration statement;

          (b)  Prepare and file with the Commission such amendments and
supplements to such registration statement and the prospectus
used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act
with respect to the disposition of all securities covered by such
registration statement;

          (c)  Furnish such number of prospectuses and other documents
incident thereto, including any amendment of or supplement to the
prospectus, as a Holder from time to time may reasonably request;

          (d)  Cause all such Registrable Securities registered pursuant
hereunder to be listed on each securities exchange on which
similar securities issued by the Company are then listed;

          (e)  Provide a transfer agent and registrar for all Registrable
Securities registered pursuant to such registration statement and
a CUSIP number for all such Registrable Securities, in each case
not later than the effective date of such registration; and

          (f)  In connection with any underwritten offering pursuant to a
registration statement filed pursuant to this Agreement, the
Company will enter into an underwriting agreement in form
reasonably necessary to effect the offer and sale of the
Registrable Securities, provided such underwriting agreement
contains reasonable and customary provisions.

                               -4-

<PAGE>

     1.5  Indemnification.

          (a)  To the extent permitted by applicable law, the Company will
indemnify each Holder, each of its officers, directors and
partners, legal counsel, and accountants and each person
controlling such Holder within the meaning of Section 15 of the
Securities Act, with respect to each registration, qualification,
or compliance that has been effected pursuant to this Agreement,
and each underwriter, if any, and each person who controls within
the meaning of Section 15 of the Securities Act any underwriter,
against all expenses, claims, losses, damages, and liabilities
(or actions, proceedings, or settlements in respect thereof)
arising out of or based on any untrue statement (or alleged
untrue statement) of a material fact contained in any prospectus,
offering circular, or other document (including any related
registration statement, notification, or the like) incident to
any such registration, qualification, or compliance, or based on
any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the
statements therein not misleading, or any violation by the
Company of the Securities Act or any rule or regulation
thereunder applicable to the Company and relating to action or
inaction required of the Company in connection with any such
registration, qualification, or compliance, and will reimburse
each such Holder, each of its officers, directors, partners,
legal counsel, and accountants and each person controlling such
Holder, each such underwriter, and each person who controls any
such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending or
settling any such claim, loss, damage, liability, or action,
provided that the Company will not be liable in any such case to
the extent that any such claim, loss, damage, liability, or
expense arises out of or is based on any untrue statement or
omission based upon written information furnished to the Company
by such Holder or underwriter and stated to be specifically for
use therein. It is agreed that the indemnity agreement contained
in this Section 1.5(a) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability, or action
if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld).

          (b)  To the extent permitted by applicable law, each Holder will,
if Registrable Securities held by such Holder are included in the
securities as to which such registration, qualification, or
compliance is being effected, indemnify the Company, each of its
directors, officers, partners, legal counsel, and accountants and
each underwriter, if any, of the Company's securities covered by
such a registration statement, each person who controls the
Company or such underwriter within the meaning of Section 15 of
the Securities Act, each other such Holder and Other Stockholder,
and each of their officers, directors, and partners, and each
person controlling such Holder or Other Stockholder, against all
claims, losses, damages and liabilities (or actions in respect
thereof) arising out of or based on any untrue statement (or
alleged untrue statement) of a material fact contained in any
such registration statement, prospectus, offering circular, or
other document, or any omission (or alleged omission) to state
therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, and will
reimburse the Company and such Holders, Other Stockholders,
directors, officers, partners, legal counsel, and accountants,
persons, underwriters, or control persons for any legal or any
other expenses reasonably incurred in connection with
investigating or defending any such claim, loss, damage,
liability, or action, in each case to the extent, but only to the
extent, that such untrue statement (or alleged untrue statement)
or omission (or alleged omission) is made in such registration
statement, prospectus, offering circular, or other document in
reliance upon and in conformity with written information
furnished to the Company by such Holder and stated to be
specifically for use therein. It is agreed that the indemnity
agreement contained in this section 1.5(b) shall not apply to
amounts paid in settlement of any such claims, losses, damages,
or liabilities (or actions in respect thereof) if such settlement
is effected without the consent of such Holder (which consent
shall not be unreasonably withheld) and that in no event shall
any indemnity under this Section 1.5(b) exceed the gross proceeds
from the offering received by such Holder.

                               -5-

<PAGE>

          (c)  Each party entitled to indemnification under this Section
1.5 (the "Indemnified Party") shall give notice to the party
required to provide indemnification (the "Indemnifying Party")
promptly after such Indemnified Party has actual knowledge of any
claim as to which indemnity may be sought, and shall permit the
Indemnifying Party to assume the defense of such claim or any
litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim
or any litigation resulting therefrom, shall be approved by the
Indemnified Party (whose approval shall not be unreasonably
withheld), and the Indemnified Party may participate in such
defense at such party's expense, and provided further that the
failure of any Indemnified Party to give notice as provided
herein shall not relieve the Indemnifying Party of its
obligations under this Section 1.5, to the extent such failure is
not prejudicial. No Indemnifying Party, in the defense of any
such claim or litigation, shall, except with the consent of each
Indemnified Party, consent to entry of any judgment or enter into
any settlement that does not include as an unconditional term
thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to
such claim or litigation. Each Indemnified Party shall furnish
such information regarding itself or the claim in question as an
Indemnifying Party may reasonably request in writing and as shall
be reasonably required in connection with defense of such claim
and litigation resulting therefrom.

          (d)  If the indemnification provided for in this Section 1.5 is
held by a court of competent jurisdiction to be unavailable to an
Indemnified Party with respect to any loss, liability, claim,
damage, or expense referred to therein, then the Indemnifying
Party, in lieu of indemnifying such Indemnified Party hereunder,
shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, liability, claim,
damage, or expense in such proportion as is appropriate to
reflect the relative fault of the Indemnifying Party on the one
hand and of the Indemnified Party on the other in connection with
the statements or omissions that resulted in such loss,
liability, claim, damage, or expense as well as any other
relevant equitable considerations. The relative fault of the
Indemnifying Party and of the Indemnified Party shall be
determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied
by the Indemnifying Party or by the Indemnified Party and the
parties' relative intent, knowledge, access to information, and
opportunity to correct or prevent such statement or omission.

          (e)  Notwithstanding the foregoing, to the extent that the
provisions on indemnification and contribution contained in the
underwriting agreement entered into in connection with the
underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall
control.

     1.6  Information by Holder. Each Holder of Registrable Securities
shall furnish to the Company such information regarding such
Holder and the distribution proposed by such Holder as the
Company may reasonably request in writing and as shall be
reasonably required in connection with any registration,
qualification, or compliance referred to in this Agreement.

                               -6-

<PAGE>

     1.7  Transfer or Assignment of Registration Rights. The rights to
cause the Company to register securities granted to a Holder by
the Company under this Agreement may be transferred or assigned
by a Holder only to a transferee or assignee of not less than
120,000 shares of Registrable Securities (as presently
constituted and subject to subsequent adjustments for stock
splits, stock dividends, reverse stock splits, and the like),
provided that the Company is given written notice at the time of
or within a reasonable time after said transfer or assignment,
stating the name and address of the transferee or assignee and
identifying the securities with respect to which such
registration rights are being transferred or assigned, and,
provided further, that the transferee or assignee of such rights
assumes in writing the obligations of such Holder under this
Agreement.

     1.8  Delay of Registration. No Holder shall have any right to
take any action to restrain, enjoin, or otherwise delay any
registration as the result of any controversy that might arise
with respect to the interpretation or implementation of this
Agreement.

     1.9  Termination of Registration Rights. The right of any Holder
to request registration or inclusion in any registration pursuant
to this Agreement shall terminate on the fifth (5th) anniversary
hereof or earlier upon such date as all shares of Registrable
Securities held or entitled to be held upon conversion by such
Holder may immediately be sold under Rule 144 during any 90-day
period.

2.   ACKNOWLEDGMENT.

     2.1  Public Status. Each of the Holders hereof expressly
acknowledges and agrees that nothing contained herein shall be
construed to imply that the Company will remain a reporting
corporation under the Exchange Act or that a "public market" of
any kind will exist for the shares of Common Stock issuable upon
conversion of the Convertible Notes.

3.   MISCELLANEOUS.

     3.1  Governing Law. This Agreement shall be governed in all
respects by the laws of the State of Delaware.

     3.2  Successors and Assigns. Except as otherwise expressly
provided herein, the provisions hereof shall inure to the benefit
of, and be binding upon, the successors, assigns, heirs,
executors and administrators of the parties hereto.

     3.3  Entire Agreement; Amendment; Waiver. This Agreement
constitutes the full and entire understanding and agreement
between the parties with regard to the subjects hereof. Neither
this Agreement nor any term hereof may be amended, waived,
discharged or terminated, except by a written instrument signed
by the Company and the holders of more than one-half of the
Registrable Securities and any such amendment, waiver, discharge
or termination shall be binding on all the Holders.

     3.4  Notices, etc. All notices and other communications required
or permitted hereunder shall be in writing and shall be mailed by
United States first-class mail, postage prepaid, sent by
facsimile or delivered personally by hand or nationally
recognized courier addressed (a) if to a Holder, as indicated on
the signature page hereto, or at such other address or facsimile
number as such Holder or permitted assignee shall have furnished
to the Company in writing, or (b) if to the Company, at the
principal executive offices of the Company. All such notices and
other written communications shall be effective on the date of
mailing, confirmed facsimile transfer or delivery.

                               -7-

<PAGE>

     3.5  Delays or Omissions. No delay or omission to exercise any
right, power or remedy accruing to any Holder, upon any breach or
default of the Company under this Agreement shall impair any such
right, power or remedy of such Holder nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence
therein, or of or in any similar breach or default thereafter
occurring; nor shall any waiver of any single breach or default
be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of
any kind or character on the part of any Holder of any breach or
default under this Agreement or any waiver on the part of any
Holder of any provisions or conditions of this Agreement must be
made in writing and shall be effective only to the extent
specifically set forth in such writing. All remedies, either
under this Agreement or by law or otherwise afforded to any
Holder, shall be cumulative and not alternative.

     3.6  Rights; Separability. Unless otherwise expressly provided
herein, a Holder's rights hereunder are several rights, not
rights jointly held with any of the other Holders. In case any
provision of this Agreement shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired
thereby.

     3.7  Information Confidential. Each Holder acknowledges that the
information received pursuant hereto may be confidential and for
its use only, and it will not use such confidential information
in violation of the Exchange Act or reproduce, disclose or
disseminate such information to any other person (other than its
employees or agents having a need to know the contents of such
information, and its attorneys), except in connection with the
exercise of rights under this Agreement, unless the Company has
made such information available to the public generally or such
Holder is required to disclose such information by law.

     3.8  Titles and Subtitles. The titles of the paragraphs and
subparagraphs of this Agreement are for convenience of reference
only and are not to be considered in construing or interpreting
this Agreement.

     3.9  Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of
which together shall constitute one instrument.

                    [Signature Page Follows]

                               -8-

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have executed this
Investors' Rights Agreement effective as of the day and year
first above written.

                         TEMTEX INDUSTRIES, INC.

                         By:
                             -----------------------------------
                         Name:
                             ------------------------------------
                         Title:
                             ------------------------------------

                         INVESTORS:

                         WILLIAM Y. TAUSCHER

                         ----------------------------------------
                         Address:  543 Forbes Boulevard
                                   South San Francisco, CA 94080-2019

                         LEONARD KEE LIVING TRUST

                         By:  Leonard Kee, as Sole Trustee

                         -----------------------------------------
                         Address:  543 Forbes Boulevard
                                   South San Francisco, CA 94080-2019

                         RICHARD ANDERSON

                         -----------------------------------------
                         Address:  38 Lincoln Street
                                   Lexington, MA  02421

                         DAVID DALTON

                         -----------------------------------------
                         Address:  2323 Bayside Drive
                                   Corona Del Mar, California 92615DRAFT NO. 3

                     TEMTEX INDUSTRIES, INC.
                        VOTING AGREEMENT

     This Voting Agreement (this "Agreement") is made and entered
into as of the 19th day of July, 2002, by and among Temtex
Industries, Inc., a Delaware corporation (the "Company"), the
holders of the Company's Convertible Subordinated Convertible
Notes due July 19, 2007 identified on the signature page(s)
hereof (collectively, the "Investors") and James Upfield, a Texas
resident ("Upfield") and the current holder of approximately
1,354,440 shares of common stock of the Company. The Company, the
Investors and Upfield are individually referred to herein as a
"Party" and are collectively referred to herein as the "Parties."
The Company's Board of Directors is referred to herein as the
"Board."

                            Recitals

     WHEREAS, the Company and the Investors have entered into
that certain Note Purchase Agreement of even date herewith (the
"Note Purchase Agreement"), which provides for, among other
things, the purchase by the Investors of an aggregate of $750,000
of the Company's Convertible Subordinated Convertible Notes due
July 19, 2007 (the "Convertible Notes");

     WHEREAS, the Company and the Investors have also entered
into that certain Investors' Rights Agreement of even date
herewith (the "Investors' Rights Agreement") providing for
certain registration and other rights in the Investors relating
to the Convertible Notes and the securities of the Company
issuable upon conversion of the Convertible Notes;

     WHEREAS, to induce the Investors to enter into the Note
Purchase Agreement and to purchase the Convertible Notes
thereunder, the Company and Upfield have agreed to enter into
this Agreement with such Investors;

     WHEREAS, Upfield has agreed to loan to the Company and its
subsidiaries $750,000 pursuant to the terms of that Secured Term
Note, dated the date hereof, executed by the Company and its
subsidiary Temco Fireplace Products, Inc. in favor of Upfield
(the "Upfield Note"); and

     WHEREAS, to induce Upfield to provide the loan evidenced by
the Upfield Note, the Company and the Investors have agreed to
enter into this Agreement with Upfield;

     NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth herein, the Parties hereto agree as follows:

<PAGE>

     1.   Agreement to Vote.

          (a)  Upfield hereby agrees, on behalf of himself and any
     transferee or assignee of any such shares (except to the extent
     expressly excluded pursuant to Section 1(b) below), to hold all
     shares of Common Stock and any other securities of the Company
     acquired by Upfield or such transferees or assignees in the
     future (and any securities of the Company issued with respect to,
     upon conversion of, or in exchange or substitution for such
     securities) (the "Upfield Shares") subject to, and to vote the
     Upfield Shares with respect to the election of directors of the
     Company being elected at any regular or special meeting of
     stockholders (or by written consent) in accordance with, the
     provisions of this Agreement. Each of the Investors hereby
     agrees, on behalf of himself and any transferee or assignee of
     any such shares (except to the extent expressly excluded pursuant
     to Section 1(b) below), to hold all shares of Common Stock and
     any other securities of the Company acquired by such Investors or
     such transferees or assignees in the future (and any securities
     of the Company issued with respect to, upon conversion of, or in
     exchange or substitution for such securities) (the "Investors'
     Shares") subject to, and to vote the Investors' Shares with
     respect to the election of directors of the Company being elected
     at any regular or special meeting of stockholders (or by written
     consent) in accordance with, the provisions of this Agreement.

          (b)  The term "Upfield Shares" shall not include, and the
     agreement to vote the shares of Common Stock set forth in
     Section 1(a) above shall not apply to shares of Common Stock held
     by HUTCO, a partnership of which Mr. Upfield is general partner.
     Further, neither the term "Upfield Shares" nor the term
     "Investors' Shares" shall include any shares of Common Stock at
     one time constituting Upfield Shares or Investors' Shares but
     subsequently transferred or assigned in a transaction effected
     through the public markets under an effective registration
     statement, through Rule 144 or otherwise.

          (c)  Nothing contained herein shall be construed to imply that
     any holder of the Upfield Shares or the Investors' Shares has any
     obligation to maintain, during the term hereof or otherwise, any
     number of shares of Common Stock, all such persons being free to
     sell his, her or its shares of Common Stock as he, she or it
     shall deem appropriate, provided, however, that any such sale or
     transfer shall be subject to the provisions of this Agreement.

     2.   Board Size.

     The Parties hereto agree that, immediately after the
execution hereof, the size of the Board shall be set and remain
at six (6) directors; provided, however, that such Board size may
be subsequently increased or decreased pursuant to the Company's
Bylaws and, vis-a-vis the Parties hereto, an amendment of this
Agreement in accordance with Section 15 hereof. Notwithstanding
the foregoing, the Parties hereto acknowledge and agree that
shareholders of the Company not Parties to this Agreement may
have certain rights as a matter of applicable law and/or under
the Bylaws of the Company to increase the number of Board seats
thereof beyond six (6).

                               -2-

<PAGE>

     3.   Election of Directors.

          (a)  The Investors shall have the right to notify the Company and
     Upfield (or the then current owner of a majority of the Upfield
     Shares who shall then be obligated to coordinate with all other
     owners of the Upfield Shares), as early as possible prior to the
     election of the directors of the Company, but, in any event,
     according to the provisions of the Bylaws of the Company and at
     least thirty (30) calendar days prior to such vote, the names of
     up to three (3) persons to be nominated by the Investors (the
     "Investor Nominees") to serve as directors of the Company
     pursuant to this Voting Agreement. To do so, the Investors
     holding more than one-half of the Registrable Securities (as
     defined in the Investors' Rights Agreement), assuming, if
     necessary, that any Convertible Notes then outstanding have been
     converted pursuant to the terms thereof (a "Majority"), shall
     provide the Company and Upfield (or the then current owner of a
     majority of the Upfield Shares) with written notice of the
     Investor Nominees, their individual qualifications for
     directorship, any information necessary to be included in the
     Company's proxy or information statement (if then a public
     reporting corporation under the Securities Exchange Act of 1934,
     as amended (the "Exchange Act")) and any other information the
     Company may need or shall reasonably request in order to assess
     qualification under the provisions of Section 3(c) below
     (collectively, "Relevant Information"). Subject to a
     determination by the Company that the Investor Nominees meet the
     requirements specified in Section 3(c) below and further subject
     to Section 3(e) below, the Investor Nominees will be included in
     the slate proposed by the Company and the Company agrees that the
     Investor Nominee so proposed will be included in the slate of
     directors supported by management in the election of directors of
     the Company. Nomination as provided herein must occur prior to
     each election of directors with respect to which the Investors
     shall desire to propose Investor Nominees, whether at an annual
     or special meeting or otherwise, and neither the holders of the
     Upfield Shares nor the Company are under any obligation to seek
     out such nominations from the Investors or to assume that the
     Investors intend for existing directors to stand for re-election.
     In no event shall the Investors be required to propose any
     Investor Nominee for election as a director of the Company.

          (b)  Upfield and any subsequent owners of the Upfield Shares
     shall have the right to notify the Company and the Investors (or
     the then current owner of a majority of the Investors' Shares who
     shall then be obligated to coordinate with all other owners of
     the Investors' Shares) as early as possible prior to the election
     of the directors of the Company, but, in any event, according to
     the provisions of the Bylaws of the Company and at least thirty
     (30) calendar days prior to such vote, the names of up to three
     (3) persons to be nominated by Upfield or any subsequent owners
     of the Upfield Shares (the "Upfield Nominees") to serve as
     directors of the Company pursuant to this Voting Agreement. To do
     so, the owners holding more than one-half of the Upfield Shares
     shall provide the Company and the investors (or the then current
     owner of a Majority) with written notice of all Relevant
     Information regarding the Upfield Nominees. Subject to a
     determination by the Company that the Upfield Nominees meet the
     requirements specified in Section 3(c) below and further subject
     to Section 3(e) below, the Upfield Nominees will be included in
     the slate proposed by the Company and the Company agrees that the
     Upfield Nominees so proposed will be included in the slate of
     directors supported by management in the election of directors of
     the Company. Nomination as provided herein must occur prior to
     each election of directors with respect to which Upfield or any
     subsequent owner of the Upfield Shares shall desire to propose
     Upfield Nominees, whether at an annual or special meeting or
     otherwise, and the Company is under no obligation to seek out
     such nominations from the owners of the Upfield Shares or to
     assume that such owners intend for existing directors to stand
     for re-election. At any time any Upfield Nominees are proposed
     for election as directors of the Company Richard W. Griner shall
     be one of the designated Upfield Nominees, provided he is then
     willing and able to serve as a director of the Company. In no
     event shall Upfield or any subsequent owner of the Upfield Shares
     be required to propose any Upfield Nominee for election as
     director of the Company.

                               -3-

<PAGE>

          (c)  The persons maintaining rights of nomination under the
     provisions of Section 3(a) and 3(b) above (collectively, the
     "Nominators"), agree to only nominate those persons as Investor
     Nominees or Upfield Nominees, as appropriate, who possess the
     qualifications, business experience, industry exposure and/or
     other attributes appropriate for a director of a business
     corporation such as the Company. In furtherance of the foregoing,
     Investors acknowledge that the Company is currently a reporting
     corporation under the Exchange Act and, as such, certain
     statutes, rules, guidelines and/or other criteria promulgated
     under or by the Exchange Act, the NASD, one or more applicable
     stock exchange or automated quotation system and/or otherwise,
     either currently applicable to the Company or applicable to the
     Company in the future, regulate who is a suitable person to serve
     as a director of the Company. Consequently, the Nominators agree
     to ensure that any and all Investor Nominees or Upfield Nominees,
     as appropriate, nominated by the Nominators pursuant to the
     provisions hereof meet all such statutes, rules, guidelines and
     other criteria applicable to and binding upon the Company.

          (d)  In any election of directors of the Company to elect the
     Investor Nominees, the persons or entities holding Upfield Shares
     each hereby agree to vote at any regular or special meeting of
     stockholders (or by written consent) such number of shares of
     Common Stock then owned by them (or as to which they then have
     voting power) for the Investor Nominees. Upon execution hereof,
     the Investors unanimously agree that the initial Investor
     Nominees shall be William Y. Tauscher, Richard Anderson and David
     Dalton and the initial Upfield Nominees shall be current Board
     members James E. Upfield, Scott K. Upfield and Richard W. Griner.

     Further, in any election of directors of the Company to elect the
     Upfield Nominees, the persons or entities holding Investors'
     Shares each hereby agree to vote at any regular or special
     meeting of stockholders (or by written consent) such number of
     shares of Common Stock then owned by them (or as to which they
     then have voting power) for the Upfield Nominees.

          (e)  Nothing contained herein shall be deemed to supersede,
     override or otherwise control the Board of Directors' fiduciary
     obligations, including any obligation relating to the nomination
     of appropriate persons to the Board.

          (f)  To the extent the Nominators do not timely exercise their
     right to nominate the Investor Nominees, or the Upfield Nominees,
     as the case may be, under the terms hereof, (1) the Board is free
     to propose any slate of nominees to the shareholders it shall
     deem appropriate, (2) the holders of the Upfield Shares are free
     to vote such Upfield Shares any way they deem appropriate and (3)
     the holders of the Investors' Shares are free to vote such
     Investors' Shares any way they deem appropriate.

                               -4-

<PAGE>

     4.   Removal; Vacancies; Chairmanship.

          (a)  Any director of the Company may be removed from the Board in
     the manner allowed by law and the Company's Certificate of
     Incorporation and Bylaws, but with respect to an Investor Nominee
     or an Upfield Nominee, only upon the vote or written consent of
     the Investors or the holder of a majority of the Upfield Shares,
     respectively.

          (b)  Should any Upfield Nominee or Investor Nominee die, become
     disabled or otherwise fail to complete his or her term of office
     as a director of the Company for any reason whatsoever and a
     vacancy shall be created thereby, the Parties agree to take all
     actions deemed necessary or appropriate so that the vacancy of
     any Upfield Nominee shall be filled by the remaining Upfield
     Nominees and the vacancy of any Investor Nominee shall be filled
     by the remaining Investor Nominees.

          (c)  In the event of the death of William Y. Tauscher during the
     three (3) year term of Mr. Tauscher's Services Agreement with the
     Company being executed by Mr. Tauscher and the Company
     concurrently herewith (the "Tauscher Services Agreement"), the
     Tauscher Nominees then serving on the Board shall be entitled to
     select the Chairman of the Board (the "New Chairman") to fill the
     vacancy in the Chairmanship created by Mr. Tauscher's death for
     the period commencing on the death of Mr. Tauscher and
     terminating on the date that the Tauscher Services Agreement
     would have terminated (i.e., three years from the date hereof).
     In such event, the Tauscher Nominees serving on the Board at that
     time may authorize the payment of a salary to the New Chairman
     not to exceed $120,000, provided that the New Chairman enters
     into a services agreement with the Company with an expiration not
     later than the date upon which the Tauscher Services Agreement
     would have expired (i.e., three (3) years from the date hereof)
     and which contains similar duties and responsibilities as those
     contained in the Tauscher Services Agreement.

     5.   Legend on Share Certificates.

     Each certificate representing any shares of Common Stock
effected by this Agreement shall be endorsed by the Company with
a legend reading substantially as follows:

          "The Shares evidenced hereby are subject to a
          Voting Agreement (a copy of which may be
          obtained upon written request from the
          issuer), and by accepting any interest in
          such shares the person accepting such
          interest shall be deemed to agree to and
          shall become bound by all the provisions of
          said Voting Agreement."

     6.   Covenants of the Company.

     The Company agrees to use its best efforts to ensure that
the rights granted hereunder are effective and that the Parties
hereto enjoy the benefits thereof. The Company will not, by any
voluntary action, avoid or seek to avoid the observance or
performance of any of the terms to be performed hereunder by the
Company, but will at all times in good faith assist in the
carrying out of all of the provisions of this Agreement and in
the taking of all such actions as may be necessary, appropriate
or reasonably requested in order to protect the rights of the
Parties hereunder against impairment.

                               -5-

<PAGE>

     7.   No Liability for Election of Recommended Directors.

     Neither the Company, the Investors, Upfield nor any officer,
director, stockholder, partner, employee or agent of such Party,
makes any representation or warranty as to the fitness or
competence of the nominee of any Party hereunder to serve on the
Company's Board by virtue of such Party's execution of this
Agreement or by the act of such Party in voting for such nominee
pursuant to this Agreement.

     8.   Grant of Proxy.

     Should the provisions of this Agreement be construed to
constitute the granting of proxies, such proxies shall be deemed
coupled with an interest and are irrevocable for the term of this
Agreement.

     9.   Specific Enforcement.

     It is agreed and understood that monetary damages would not
adequately compensate an injured Party for the breach of this
Agreement by any Party, that this Agreement shall be specifically
enforceable, and that any breach or threatened breach of this
Agreement shall be the proper subject of a temporary or permanent
injunction or restraining order. Further, each Party hereto
waives any claim or defense that there is an adequate remedy at
law for such breach or threatened breach.

     10.  Execution by the Company.

     The Company, by its execution in the space provided below,
agrees that it will cause the certificates evidencing the shares
of Common Stock to bear the legend required by Section 5 herein,
and it shall supply, free of charge, a copy of this Agreement to
any holder of a certificate evidencing shares of capital stock of
the Company upon written request from such holder to the Company
at its principal office. The Parties hereto do hereby agree that
the failure to cause the certificates evidencing the shares of
Common Stock to bear the legend required by Section 5 herein
and/or failure of the Company to supply, free of charge, a copy
of this Agreement as provided under this Section 5 shall not
affect the validity or enforcement of this Agreement.

     11.  Captions.

     The captions, headings and arrangements used in this
Agreement are for convenience only and do not in any way limit or
amplify the terms and provisions hereof.

     12.  Notices.

     Any notice required or permitted by this Agreement shall be
in writing and shall be sent prepaid registered or certified
mail, return receipt requested, addressed to the other Party at
the address shown below or at such other address for which such
Party gives notice hereunder. Such notice shall be deemed to have
been given three (3) days after deposit in the mail.

                               -6-

<PAGE>

     13.  Term.

     This Agreement shall terminate and be of no further force or
effect upon (a) the acquisition of the Company by another entity
by means of any transaction or series of related transactions
(including, without limitation, any reorganization, merger or
consolidation) that results in the transfer of fifty percent
(50%) or more of the outstanding voting power of the Company or a
sale of all or substantially all of the assets of the Company,
(b) such time as the Investors (together with their respective
affiliates and partners) shall own less than $200,000 of the
Convertible Notes or less than 120,000 shares of Common Stock
received upon conversion thereof, (c) July 19, 2007 or (d) the
written consent of the holders of a Majority and the holders of a
majority of the then outstanding Upfield Shares. In addition, the
owner(s) of a majority of the Upfield Shares shall maintain the
right to terminate this Agreement earlier if, in any election of
directors of the Company, any one or more of the Upfield Nominees
duly nominated hereunder is not included in the slate of nominees
proposed by management of the Company or otherwise supported by
management as provided hereunder. Further, the owner(s) of a
Majority shall maintain the right to terminate this Agreement
earlier if, in any election of directors of the Company, any one
or more of the Investor Nominees duly nominated hereunder is not
included in the slate of nominees proposed by management of the
Company or otherwise supported by management as provided
hereunder.

     14.  Manner of Voting.

     The voting of shares pursuant to this Agreement may be
effected in person, by proxy, by written consent, or in any other
manner permitted by applicable law

     15.  Amendments and Waivers.

     Any term hereof may be amended and the observance of any
term hereof may be waived (either generally or in a particular
instance and either retroactively or prospectively) only with the
written consent of the holders of a Majority of the Investors and
the holders of a majority of the then outstanding Upfield Shares.
Any amendment or waiver so effected shall be binding upon the
Parties hereto.

     16.  Stock Splits, Stock Dividends, etc.

     In the event of any issuance of shares of the Company's
voting securities hereafter to any of the Parties hereto
(including, without limitation, in connection with any stock
split, stock dividend, recapitalization, reorganization, or the
like), such shares shall become subject to this Agreement and
shall be endorsed with the legend set forth in Section 5.

     17.  Severability.

     Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be
held to be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

                               -7-

<PAGE>

     18.  Binding Effect; Assignment and Transfer.

     In addition to any restriction or transfer that may be
imposed by any other agreement by which any Party hereto may be
bound, this Agreement shall be binding upon the Parties, their
respective heirs, successors and assigns. Notwithstanding the
foregoing, the Investors agree that their collective right to
nominate the Investor Nominees as provided in Section 3(a) above
shall continue only so long as they actually own the Convertible
Note; it being understood that the right to nominate the Investor
Nominees shall not be severable from the ownership of the
Convertible Notes (or the shares of Common Stock issued upon
conversion thereof). Consistent with the provisions of Section
1(c) above, Upfield and any subsequent assignee or transferee of
the Upfield Shares and the Investors and any subsequent assignee
or transferee of the Investors' Shares may sell (both publicly or
privately), convey, gift, pledge, hypothecate or otherwise assign
or transfer the Upfield Shares or the Investors' Shares, as the
case may be; provided, however, as a condition precedent to doing
so, any holder of Upfield Shares or Investors' Shares must obtain
the written agreement of such subsequent assignee or transferee
to be bound by the terms of this Agreement (except to the extent
expressly excluded pursuant to Section 1(b) above). Upon the
execution and delivery of such an agreement by any transferee
reasonably acceptable to the Company, such transferee shall be
deemed to be a Party hereto as if such transferee's signature
appeared on the signature pages hereto.

     19.  Governing Law.

     This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without regard
to conflicts of law principles thereof.

     20.  Entire Agreement.

     This Agreement is intended to be the sole agreement of the
Parties as it relates to this subject matter and does hereby
supersede all other agreements of the Parties relating to the
subject matter hereof.

     21.  Counterparts.

     This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

                    [Signature Page Follows]

                               -8-

<PAGE>

     IN  WITNESS  WHEREOF, the Parties have executed this  Voting
Agreement as of the date first above written.

                         COMPANY:

                         TEMTEX INDUSTRIES, INC.

                         By:
                             ------------------------------
                         Name:
                              -----------------------------
                         Title:
                               ----------------------------

                         INVESTORS:

                         WILLIAM Y. TAUSCHER

                         ----------------------------------
                         Address:  543 Forbes Boulevard
                                   South San Francisco, CA 94080-2019

                         LEONARD KEE LIVING TRUST

                         By:  Leonard Kee, sole Trustee

                         ----------------------------------
                         Address:  543 Forbes Boulevard
                                   South San Francisco, CA 94080-2019

                         RICHARD ANDERSON

                         ----------------------------------
                         Address:  38 Lincoln Street
                                   Lexington, MA  02421

                         DAVID DALTON

                         -----------------------------------
                         Address:  2323 Bayside Drive
                                   Corona Del Mar, California 92615

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