Document:

EX-10.4

 

EMPLOYMENT AGREEMENT 

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

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

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

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

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

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

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

EMPLOYMENT AGREEMENT

  Mimi Tan Edmonds 

  Page 1 of 6 

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

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

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

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

	 	(i) 	Employee's death; or, 
	 	 	 
	 	(ii) 	 The Company or Employee shall terminate this Agreement as hereinafter provided. 

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

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

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

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

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

EMPLOYMENT AGREEMENT

Mimi Tan Edmonds 

Page 2 of 6 

provided for in Exhibit A hereto. In addition, Employee shall be entitled to such severance compensation in the event her employment is terminated hereunder because of illness or incapacity as set forth in section 5.4
hereof during the term of this Agreement. Also, Employee’s estate shall be entitled to such severance compensation in the event of her death during the term of this Agreement 

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

          5.6      Employees Right to Terminate. Employee may, upon substantial breach of this Agreement by the Company,
terminate this Agreement by giving thirty (30) days' prior written notice to the Company, in which event the Company is under no duty to pay any sums to Employee other than accrued but unpaid salary owing Employee as of the date of termination
established by Employee's notice, plus the severance compensation provided for in section 5.4 hereof and provided that Employee fully performs Employee's obligations hereunder to the date of such termination. 

          5.7       Employee's obligations concerning inventions and work product 

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

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

                      (c) Employee shall provide the Company with all information, documentation, and assistance the Company may request to perfect, enforce, or defend the proprietary rights in or based on the Inventions, Work Product or
Trade Secrets. The Company, in its sole discretion, shall determine the extent of the proprietary rights, if any, to be protected in or based on the Inventions and Work Product. All such information, documentation, and assistance shall be provided
at no additional expense to the Company, except for out-of-pocket expenses, which the Employee incurred at the Company's request.

          6.      Employee obligations concerning trade secrets. 

                    (a) During the term of his employment with the Company and thereafter for 10 years employee shall treat Trade Secrets on a confidential basis and not disclose them to others without the
prior written permission of the Company, or use Trade Secrets for any purpose, other than for the performance of services for the Company. 

                    (b) Employee acknowledges that Trade Secrets are the sole and exclusive property of the Company. The Employee shall surrender possession of all Trade Secrets to the Company upon any
suspension or termination of Employee's employment with the Company. If after the suspension or termination of Employee's employment, Employee becomes aware of any Trade Secrets in his possession, Employee shall immediately surrender possession
thereof to the Company. 

EMPLOYMENT AGREEMENT 

Mimi Tan Edmonds 

Page 3 of 6 

           7.      Competitive activities. 

                    (a) During the term of Employee's employment with the Company, Employee shall not: 

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

                    (2) Own, directly or indirectly, an interest in any entity competing, directly or indirectly, with the Company except Employee may own less that 5% of a publicly traded company; 

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

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

                    (b) During the period of eighteen months after any suspension or termination of Employee's employment by the Company, Employee shall not contact, directly or indirectly, any customer of
the Company with whom Employee had contact during the last 12 months of Employee's employment hereunder. 

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

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

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

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

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

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

EMPLOYMENT AGREEMENT

Mimi Tan Edmonds 

Page 4 of 6 

The decision and award made by the arbitrator shall be final, binding and conclusive on all parties hereto for all purposes, and judgment may be entered thereon in any court having jurisdiction thereof. 

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

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

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

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

 Employee has read and understood the foregoing and agrees to be bound thereby. Further, Employee has retained her own counsel to advise her concerning the terms and conditions of this Agreement. 

	 	 
	 	

	 	 Mimi Tan Edmonds  
	 	 
	 	
Date: _________________, 2006 
	

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

	 	
      Universal Power Group, Inc., a Texas corporation 
      

	 	 
	 	 
	 	 
	 	

	  

	 	

 By: 
    

	 	

	 	

 Randy Hardin, President and CEO 
    

	 	 
	 	

 Date: August 1, 2006 
    

	 	 
	 	 
	 	 
	 	

	  

	 	

 By: 
    

	 	

	 	

 Julie Sansom-Reese, 
    

	 	
      Chief Financial Officer 
      

	 	 
	 	
      Date:
        __________________
        , 2006
      

EMPLOYMENT AGREEMENT 

Mimi Tan Edmonds 

Page 5 of 6 

Exhibit A to Mimi Tan Edmonds Employment Agreement with Universal Power Group, Inc., a Texas corporation 

Salary 

$153,700 annually. 

Vacation 

4 weeks per year. 

Other

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

Duties

Mimi Tan Edmonds shall be the Secretary, Vice President of Business Development and Marketing of the Company. She shall perform and be responsible for those duties and obligations of the VP of Business Development and
Marketing of the Company as set forth in the Bylaws of the Company. In addition, Mimi Tan Edmonds shall perform those duties as may reasonably be assigned to her by the Board of Directors of the Company. 

Incentive Bonus

In addition to her salary as set forth above and
subject to the conditions set forth below, Mimi Tan Edmonds may be paid an annual
incentive bonus to be determined solely by the Board at the end of the year. 

EMPLOYMENT AGREEMENT 

Mimi Tan Edmonds 

Page 6 of 6EX-10.7

Scaly Properties 

  Standard Industrial Lease 

  Multi-Tenant Modified Gross 

July 2002 

LEASE AGREEMENT 

             PARTIES 

          This
Lease Agreement ("Lease") is entered into on the date of the last execution by
the parties hereto, between Sealy Hayden Road,
L.P., a Georgia limited  partnership, ("LESSOR");
and Universal Battery Corporation ("LESSEE"),
and includes all pages and exhibits attached hereto and incorporated  by reference
herein, and all amendments, modifications, renewals, extensions, restatements,
additions and deletions subsequently effected pursuant to Article 36 herein. 

1.          LEASED
PREMISES 

          LESSOR
hereby leases to LESSEE, and LESSEE hereby leases from LESSOR, on the terms,
conditions and covenants in this Lease, the space described, outlined and/or
set forth on Exhibit "A",
consisting of 73,000 rentable
square feet, and all fixtures, systems and equipment located thereon (the "Leased
Premises"). The municipal address of the Leased Premises is
1720 Hayden Road, Carrollton, Texas 75006 and
is located on the land more particularly described on Exhibit "B" (the "Land").
The term "Building" in this Lease shall mean the
physical structure(s) and all other improvements located on the Land in which
the Leased Premises is located. 

2.           TERM 

          TO HAVE AND
TO HOLD said Leased Premises for a period of two
(2) years and eighteen (18)  days or twenty-four (24) months and eighteen (18)
days, commencing on February
10, 2003, or on such earlier date as LESSEE
may take actual  possession of the Leased Premises (the "Commencement Date"),
and ending on February 28, 2005 or
the last day of the month that is twenty-four (24) full calendar months and
eighteen (18) days following
the Commencement Date (the "Expiration Date"), unless sooner terminated, renewed
or extended as provided for herein (such period  as renewed, extended or terminated
hereinafter referred to as the "Term"). If there is work to be performed by LESSOR
pursuant to Exhibit "C", the Commencement Date shall be subject to adjustment
as provided in Article 3. 

3.           ACCEPTANCE OF LEASED PREMISES; CONDITION AND SUITABILITY 

          A.           Except
for work required to be performed by LESSOR as provided for pursuant to Exhibit "C",
LESSEE acknowledges that: (i) it has filly inspected the Leased Premises; (ii)
it is fully aware of the physical condition of the Leased Premises; (iii) it
hereby accepts the Leased Premises in its present AS IS condition with no express
warranties nor promises to repair, replace or maintain (except as expressly set
forth in this Lease) and no implied warranties; (iv) the Leased Premises is fully
suitable for LESSEE'S uses, purposes and occupancy; (v) the Leased Premises is
in good and satisfactory condition. Lessor represents that as of the Commencement
Date, to the best of Lessor's  knowledge: (1) the Leased Premises contain no
material latent defects or Hazardous Substances (as defined in Section 28); and
(ii) the HVAC units, plumbing and dock doors are in normal working order. 

          B.           If
the Leased Premises or any part thereof is to be constructed or modified by LESSOR
prior to the Commencement Date, in accordance with Exhibit "C", the Lease Commencement
Date shall be  the date which the improvements required to be performed by LESSOR
pursuant to Exhibit "C" have been substantially completed. 

4.           BASE RENT, SECURITY DEPOSIT AND ESCROW 

          A.           As
rental for the Leased
Premises, LESSEE agrees to pay as rent to LESSOR, without notice, reduction,
deduction or offset,  at LESSOR's office at P.O. Box 1634, Shreveport, Louisiana
71165-1634, or at such other place as LESSOR may from time to time designate
in writing in advance, the "Base Monthly Rent" as set forth in Article 4.E. herein
on or before the first day of  each calendar month through the Term. 

          B.           Upon
delivery of this renewal Lease, LESSEE will deposit $35,770.00 to
be applied as follows: $17,885.00 as the first Total Monthly Payment
as defined herein and $17,885.00 as a
Security Deposit. Any amount designated herein as "Security Deposit" shall not
bear interest, may be commingled with LESSOR's general funds, and shall not be
considered an advance payment of rent or a measure of LESSOR's damages. In the
event of a  Default (as defined in Article 20), including but in no way limited
to the non-payment of rent, LESSOR may, from time to time without forfeiting,
compromising, releasing, novating or waiving any right or remedy, use the Security
Deposit to the  extent necessary to pay past due rent and other amounts due LESSOR.
Following any such application of the Security Deposit, LESSEE shall pay to LESSOR
the amount so applied in order to restore the Security Deposit to its original
amount within five (5) days after written request. 

          C.           If
LESSEE is not in Default, the balance of the Security Deposit shall be returned
by LESSOR (or, in the event of an assignment of LESSOR's interest in the Leased
Premises and the Security  Deposit during the Term, by LESSOR's assignee) within
sixty (60) days after the later of: (i) the end of the Term or (ii) delivery
of possession of the Leased Premises to LESSOR in accordance with this
Lease. 

          E.           The
amount of the initial Base Monthly Rent and the monthly Operating Expense payments
beginning March 1, 2003 through February 28, 2005 are as follows: 

	               	
      Total Monthly Rent 
      
	 
		 
		$
		
17,885.00 
		 

          As
used herein, the term "Total Monthly Payment" shall include all subsequent adjustments
pursuant to this Article 4. If this Lease shall commence on any date other than
on the first day of a  calendar month, or end on any date other than the last
day of a calendar month, rent for such month shall be prorated on a daily basis.
In the event of a partial calendar year LESSEE's Proportionate Share of the Operating
Expenses shall be  proportionately adjusted based on the number of days comprising
such partial calendar year. 

5.           LATE CHARGES 

          Time
is of the essence regarding all amounts payable to LESSOR. All amounts due under
this Lease shall be paid on or before the date due. LESSEE acknowledges that
the late payment of Base  Monthly Rent or any other amounts payable by LESSEE
to LESSOR hereunder (all of which shall constitute additional rent to the same
extent as the Base Monthly Rent) will cause LESSOR to incur administrative costs
and other damages, the exact amount of  which would be impracticable or extremely
difficult to ascertain. LESSEE AND LESSOR agree that if LESSOR does not receive
any such payment on or before five (5) business days after the date the payment
is due, LESSEE shall pay to LESSOR, as  additional rental, a late charge equal
to ten percent (10%) of the overdue amount to cover such additional administrative
costs. This provision for a late charge shall be in addition to all of LESSOR'S
other rights and remedies hereunder or at law  or equity, and shall not be construed
as liquidated damages. 

6.           PURPOSE, USE AND OCCUPANCY; COMPLIANCE WITH LAWS 

          A.           The
Leased Premises are leased for the purpose of, and shall be used and occupied
for officing, storage, and distribution of
non-hazardous batteries and  electronic components associated with Lessee's business and
for no other purpose. The Leased Premises shall not be used for any unlawful
purpose nor in any manner creating a public or private nuisance or trespass.
Neither sidewalks nor loading docks nor any other area outside the Leased Premises
shall be used for sale, storage or display in any manner whatsoever. 

          B.           LESSEE
shall, at its sole cost and expense, obtain all licenses, certificates, permits
and all other approvals necessary for such purpose, use and occupancy of the
Leased Premises, and shall  provide LESSOR with copies of same with thirty (30)
days of LESSEE's occupancy and additional copies as may be reasonably requested
within five (5)
days after written request. LESSEE shall comply with all
governmental statutes, laws, ordinances, orders, decrees, decisions, rules and
regulations  applicable to the purpose, use and occupancy of the Leased Premises,
including but in no way limited to the correction, prevention and abatement of
public or private nuisances or Hazardous Substances (as defined in Article 28.A.),
in, upon, or  connected with the Leased Premises, all at LESSEE's sole expense.
LESSEE will not permit the Leased Premises to be used for any purpose or in any
manner, or take or allow any action or inaction, which would not be covered by
the insurance described  in Articles 8 or 9 or
which would render the insurance thereon void or voidable or the insurance risk
more hazardous or the premium therefore more expensive. If there is any increase
 in the cost of any such insurance described in Article 8 or 9 because of LESSEE's
proposed or actual actions or inactions, LESSEE shall pay the full amount of
such increase within ten (10) days after written request. 

          C.           LESSEE
and LESSEE's agents, employees, contractors and invitees will comply fully with
all requirements of the rules and regulations of the Building  and/or project
and related facilities which are attached hereto as Exhibit "D", and
made a part hereof as though fully set out herein. LESSOR shall at all times
have the right to  change such rules and regulations or to promulgate other rules
and regulations in such manner as may be deemed advisable for safety, care, or
cleanliness of the Building and/or project and related facilities or premises,
and for preservation of good  order therein, all of which rules and regulations,
changes and amendments will be forwarded to LESSEE in writing and shall be carried
out and observed by LESSEE. LESSEE shall further be responsible for the compliance
with such rules and regulations  by the employees, servants, agents, visitors
and invitees of LESSEE. 

7.           TAXES 

          A.           LESSEE
shall pay LESSEE's Proportionate Share pursuant to Articles 4.D. and 4.E., of
all taxes, assessments and governmental charges of any kind and nature imposed
upon the Leased Premises,  Land, Building and/or project of which the Leased
Premises are a part (referred to herein as "Taxes"). If at any time during the
Term, there shall be levied, assessed or imposed on LESSOR a capital levy or
other tax directly on the rents received  from the Leased Premises, Land, and/or
a franchise tax, assessment, levy or charge measured by or based, in whole or
in part upon such rents from the Leased Premises, Land or Building, in which
the Leased Premises is located, then all such taxes,  assessments, levies or
charges, or the part thereof so measured or based, shall be deemed to be included
within the term "Taxes." 

          B.           LESSEE
shall be liable for and pay all taxes, assessments, levies and governmental charges
imposed against any personal property or fixtures placed in the Leased Premises.
If any such taxes,  assessments, levies or governmental charges
are against LESSEE's property and (i) LESSOR pays same or (ii) the assessed value
of LESSOR'S property is increased by inclusion of  LESSEE's personal property
and fixtures and LESSOR pays all or part of same, then, within five (5) days
after written request, LESSEE shall pay same to LESSOR. 

8.           LESSOR'S INSURANCE 

          A.           LESSOR
shall procure insurance policies and charge a Proportionate Share of the premium
cost to the LESSEE pursuant to Articles 4.D. and 4.E. of, fire, casualty, liability
and any other  insurance coverage for the Leased Premises, Land, Building and/or
project of which the Leased Premises are a part, as is commercially practicable.
Such insurance shall include, but in no way be limited to, casualty insurance
covering the Building in  an amount of not less than eighty percent (80%) of
the replacement cost thereof. 

          B.           LESSOR
shall have the right to employ an insurance consulting firm to
attempt to assure a competitive insurance cost on the  Leased Premises, Land
and Building, and LESSEE's Proportionate Share of the cost of such consultant
shall be included as LESSOR'S insurance to be charged to Lessee pursuant to this
Article. 

          C.           LESSEE's
cost of the insurance and other items mentioned in this Article shall be defined
as its Proportionate Share of any of the premiums for the  calendar or base
year of 2002
($22,144.10). Insurance expense shall be determined on an accrual basis
in accordance with generally  accepted accounting principles consistently applied. 

9.           LESSEE'S INSURANCE 

          LESSEE,
at its sole expense, shall obtain and maintain in full force and effect at all
times during the Term the following insurance coverage: (a) worker's compensation
insurance; (b) "All
Risk" fire and extended coverage insurance covering all contents, fixtures and
improvements in the Leased Premises in an amount not less than 100% of their
full replacement cost; (c) public general liability insurance against liability
for property  damage and personal injury suffered by anyone by reason of the
use or occupancy of the Leased Premises with minimum limits of $1,000,000
on account of bodily injury to or death of one person, $1,000,000 on account
of any one occurrence  affecting more than one person and $500,000 on account
of damage to property; and (d) insurance covering the releases and indemnities
of LESSEE set forth in this Lease.
All of  such insurance shall be provided by an insurance company or companies
with A.M. Best ratings of A-VII or
better and licensed to do business in the state in which the property is  located
shall name LESSOR as an additionally insured, and shall be non-cancelable except
upon thirty (30)
days written notice to LESSOR and any designees of LESSOR. Within ten (10)  days
after the date of this Lease, and thereafter within ten (10) days after written
request, LESSEE shall provide certificates of insurance evidencing the aforementioned
coverage, or other such evidence acceptable to LESSOR in its sole discretion.

10.         MAINTENANCE
AND REPAIR BY LESSOR 

          A.           LESSOR
at it's own cost and expense, shall maintain only the roof, foundation and the
structural soundness of the exterior walls of the Building in  good repair, reasonable
wear and tear excepted. The term "exterior walls" as used herein shall not include
windows, glass or plate glass, doors, special storefronts, or office entries. 

          B.           LESSEE
shall repair and pay for any damage caused by the actions or inactions of LESSEE,
and LESSEE's employees, agents, contractors, invitees, licensees, patrons and
others under its  control, or caused by LESSEE's Default or failure to discharge
its obligations and duties to repair and maintain the Leased Premises as provided
in this Lease. 

          C.           LESSEE
shall promptly give LESSOR written notice of any defect or need for repairs after
which LESSOR shall have reasonable opportunity to repair same  or cure such defect.
LESSOR's liability with respect to any defects, repairs or maintenance for which
LESSOR is responsible under any of the provisions of this Lease shall be limited
to the cost of such repairs or maintenance or the curing of such  defect. LESSOR
shall be allowed full access at all times to the Leased Premises by LESSEE for
the purpose of fulfilling or attempting to fulfill its obligations under this Article
10.

11.        MAINTENANCE AND REPAIR BY
LESSEE; COMMON AREA MAINTENANCE 

          A.           LESSEE
shall, at its sole expense, repair and maintain all parts of the Leased Premises,
except those for which LESSOR is expressly responsible under this Lease, in good
condition, making  all necessary repairs, maintenance and replacements, including
but not limited to, ceiling tiles, windows, glass, doors, signs, office entries,
railings, interior walls and finish work, floors and floor covering, heating
and ventilation systems, air conditioning systems, dock boards and ramps, truck
doors, dock bumpers, plumbing fixtures, termite and pest extermination, removal
of trash and debris, handicap access areas, and shall keep the whole of the Leased
Premises in a safe, clean and  sanitary condition. LESSEE shall not cause or
permit trash to accumulate in or around the Building. 

          B.           In
addition, LESSEE shall at its sole expense, repair and maintain, those portions
of the Leased Premises and Building, to the extent that such items serve the
Leased Premises exclusively, not in common with other tenants; including but
not limited to, plumbing, drains, electrical systems, fire sprinkler systems,
gutters, downspouts, exterior painting, trees, shrubs,  landscaping, parking
areas, driveways, sidewalks, curbs, bollards, railings, loading areas, rail spur
areas, private streets and alleys, lighting, utility consumption, owners association
dues, hallways, and other areas and improvements exclusive of  the roof, foundation
and other structural components of the Building. 

          C.           LESSEE
shall not be obligated to repair any damage caused by fire, tornado or other
Act of God or Force Majeure (as defined in Article 40 of this Lease) to  the
extent of insurance proceeds actually paid to LESSOR, except that LESSEE shall
be obligated to repair all wind damage to all glass and signage
except with respect to tornado or hurricane damage. 

heating, air conditioning, water, sewerage, painting, termite control, pest extermination, trash and debris removal, cleaning, inspecting, landscaping, lawn sprinkler systems, repairing, replacing, policing, guarding and
protecting) which may be incurred by LESSOR in its discretion. 

          F.           LESSOR
reserves the right but is not obligated to perform necessary repairs to common
sewage line plumbing and all other repairs, maintenance and replacements which
are otherwise LESSEE's obligation under this Article 11, and LESSEE shall, with
respect to such items, be liable for and pay to LESSOR the cost of same within
ten (10) days after written request. Provided that if any other particular tenant
of the Building can be clearly identified as being responsible for the actions
or inaction's leading to the need for such repair, maintenance or replacement
as described in this Article 11, then LESSOR shall seek from such other tenant,
if responsible, to pay for entire cost thereof. 

          G.           LESSEE agrees to sign a joint maintenance agreement with the railroad company (if any) servicing the Leased Premises, if requested by the railroad
company or LESSOR. LESSOR shall have the right to coordinate any repairs and maintenance of any rail tracks serving the Building, and, if LESSEE uses such rail tracks, LESSEE shall reimburse LESSOR from time to time, within ten (10) days after
written request, for a share of the costs of such repairs and maintenance and any other sums specified in any agreement to which LESSOR is a party respecting such tracks, such share to be calculated by dividing the square feet contained in the
Leased Premises by the total rentable space occupied by tenants utilizing rail in the Buildings which the rail maintenance cost is applicable. 

          H.           LESSEE
shall, at its sole expense, enter into a regularly scheduled preventive maintenance/service
contract with a maintenance contractor for servicing all hot water, heating,
ventilation  and air conditioning systems and other equipment within the Leased
Premises. LESSOR reserves the right to approve or disapprove of any maintenance
contract and the contractor(s) performing work on equipment serving the Leased
Premises. The service  contract must include all services recommended by the
equipment manufacturer and must become effective and a copy thereof delivered
to LESSOR without demand within thirty (30)
days of  the date of this Lease. Lessor warrants that the HVAC units at the Leased
Premises will function normally for one (1) year from the Commencement Date.
Any repair, maintenance or replacement costs for HVAC units shall first be deferred
and covered by  such preventative maintenance/service contract. 

          I.           LESSEE
shall pay Lessee's Proportionate Share, pursuant to Articles 4.D. and 4.E., of
all costs incurred by Lessor associated with the Common Area items as described
in this Article 11, in  excess of $21,604.00   per calendar year. However,
Lessee's Proportionate Share of such items shall not increase more than 10% per
calendar year. 

12.         UTILITIES 

          LESSOR
agrees to provide, at its sole expense, the connections to the Leased Premises
for sewer, water, electricity, natural gas and telephone service; but LESSEE
shall pay for all charges for  water, gas, heat, light power, telephone, sewer,
fire sprinklers and
all other utilities and services used on or from the Leased Premises, together
with any taxes, assessments,  deposits, surcharges or other additional charges,
penalties or the like pertaining thereto and any repair and maintenance charges
for utilities, and LESSEE shall furnish all electric light bulbs and tubes and
elements. If any such services are not  separately metered to LESSEE, LESSEE
shall pay its Proportionate Share of the cost of such services pursuant to Articles
4.D. and 4.E. of all charges jointly metered with other tenants of the Building;
provided, however, LESSOR shall have the right  to charge LESSEE with a greater
share of the cost of such services on an equitable basis to the extent LESSEE
is using a disproportionately large amount of the services in relation to the
other tenants of the Building and/or project. LESSOR reserves  the right to cause
any of said services to be separately metered to LESSEE at LESSEE's sole expense.
LESSOR shall not be liable or pay for any interruption, re-establishment or failure
of utility services to the Leased Premises. 

13.        RELEASES
AND INDEMNITY AND WAIVER OF SUBROGATION 

          A.           LESSEE
assumes full responsibility to LESSOR and all third parties for the condition
and security of the Leased Premises, and agrees to keep the Leased Premises in
a safe condition and to  defend, indemnify and hold LESSOR, its employees, representatives,
agents, contractors, patrons, invitees, and licensees harmless from any and all
liability for and against any injury or damage relating to, arising from or connected
with: (i) the  condition of and the use and occupancy of the Leased Premises,
including but not limited to any injury or damage caused by, relating to, connected
with, or arising from the condition of the Leased Premises or the actions or
inaction's of LESSEE, its  employees, agents, contractors, patrons, invitees,
licensees or others under its control, or by fire, explosion, falling plaster,
or other materials, Hazardous Substances, steam, gas, electricity, water, rain,
sleet, snow, hail, or from leaks from  any parts of the Leased Premises, or from
pipes, appliances, or plumbing works, from the roof, street, or subsurface or
from any other place, or by dampness or by occupants of contiguous or adjacent
property, or the public, or from any damage caused  by operations in connection
with any construction or demolition, or by any other cause or catastrophe whatsoever;
(ii) all actions or inaction's of LESSEE, its employees, agents, contractors,
patrons, invitees, licensees or others under its control,  in or about the Leased
Premises; (iii) all costs, attorney's fees, expenses and liability incurred by
LESSOR in connection with any suit, claim or action or proceeding brought on
account of the events and transactions described in Articles 7.A.(i)  and (ii);
provided, however, LESSEE shall not be required to indemnify and hold LESSOR
harmless from or against any such injury or damage caused by the sole negligence
of LESSOR. LESSOR shall not be liable or responsible for any loss of or damage
to  the property of LESSEE or others by theft, all of which property shall be
insured or self-insured by LESSEE, at LESSEE's sole cost and expense. 

          B.           LESSOR
and LESSEE each hereby release each other from all loss or damage caused by perils
required by this Lease to be insured through, by or under them by way of subrogation
or otherwise, even if such loss or damage shall have been caused by the XXXXX 

walls, and in any case complying with all applicable
governmental laws, ordinances, decisions, orders, decrees, regulations and other
requirements. All Alterations and Fixtures erected by LESSEE that are affixed
to the  Leased Premises or the Building shall be and remain the property of LESSOR
during the Term of this Lease; however, LESSEE shall, unless LESSOR otherwise
elects in writing, remove all Alterations and Fixtures erected by LESSEE and
restore the Leased Premises to its original condition by the end of the Term
or upon earlier vacating of the Leased Premises, whichever comes first. Notwithstanding
the foregoing, if LESSOR so elects in writing prior to the end of the Term of
this Lease or upon  LESSEE's earlier vacating of the Leased Premises, such Alterations
and Fixtures as LESSOR elects to have remain in the Leased Premises shall remain
the property of LESSOR upon and after such end of the Term or LESSEE's earlier
vacating of the Leased  Premises. All removals and restorations by LESSEE shall
be accomplished in a good and workmanlike manner SO as
not to damage the Leased Premises, Land or Building or their structural,  aesthetic
or functional qualities, and LESSEE shall repair any such damage at its sole
cost and expense. 

15.        SIGNS AND SIGN REMOVAL 

          After
first obtaining express written approval from LESSOR, LESSEE shall have the right
to erect signs on the exterior walls of the Building in accordance with signage
specifications  established by LESSOR. Any such signs to be securely attached
parallel to the walls and shall be in keeping with the general scheme of the
signs and aesthetic characteristics in the immediate vicinity of the Leased Premises
and shall not be other  than customary trade signs identifying the business of
LESSEE. LESSEE shall not erect any sign over the public way, over the roofline
or on the roof, nor paint or otherwise deface or alter the exterior walls of
the Building or Leased Premises. The  erection of any signs by LESSEE shall be
subject to and in conformity with all applicable laws, zoning ordinances, and
building restrictions, covenants of record and in accordance with LESSOR'S signage
standards. On or before the end of the Term, LESSEE shall remove all signs thus
erected, and shall repair any damage or disfigurement, and close any holes, caused
by such removal. 

16.        ASSIGNMENT OR SUBLETTING 

          LESSEE
may not assign this Lease or sublease the Leased Premises in whole or in part
without LESSOR'S prior express written consent, which consent shall not be unreasonably
withheld, and then  only in accordance with and
subject to the following conditions, the satisfaction of which shall be in the
sole discretion of LESSOR: 

          A.           If
LESSEE desires to assign this Lease or sublet the Leased Premises in whole, then,
at least thirty (30)
days prior to  the proposed effective date of any assignment or sublease, the
LESSEE shall deliver to LESSOR a written notice of intention to assign or to
sublease, setting forth a proposed commencement date for the assignment or sublease
and shall attach to such  notice a copy of the proposed assignment or sublease
agreement and all agreements collateral thereto. The LESSOR shall then give written
notice to LESSEE within fifteen (15) days after receipt of LESSEE's notice of
intention to assign or sublease as  to whether or not Lessor will consent to
such assignment or sublease. 

          B.           In
the event of the assignment of this Lease or sublease of all or any portion of
the Leased Premises where the rental reserved in the assignment or sublease exceeds
the rental or the  pro-rata portion of the rental, as the case may be, for such
space reserved in this Lease, LESSEE shall pay the LESSOR monthly, as additional
rent, at the same time and at the same place as the monthly installments of rent
hereunder, the excess of  the rental reserved in the assignment or sublease over
the rental reserved in this Lease applicable to the assigned or subleased space. 

          C.           None
of LESSEE's obligations to LESSOR under this Lease shall be waived, forfeited,
compromised, released or novated regardless of any assignment or sublease, and
any assignment or sublease  shall be expressly subject to and in compliance with
the provisions of this Lease. Further, the terms and conditions of this Lease
shall take precedence over and control the provisions of any sublease or assignment
to the extent of conflict or  differing interpretation. 

17.         DAMAGE
OR DESTRUCTION 

          A.           If,
at any time prior to the Commencement Date or during the first one half (1/2)
of the Term, the Leased Premises or the Building should be destroyed or damaged
to any extent which may require repairs in an amount in excess of twenty (20%)
percent of the replacement cost, less reasonable depreciation under the straight
line method, of the Leased Premises or the  Building, LESSOR shall have the right
and option of either: 

                    (1)           Immediately
terminating this Lease, in which case neither party shall have any rights against
the other party from and after the occurrence or destruction except those arising
from this  Lease; or 

                    (2)           Repairing or rebuilding such damaged or destroyed portions of the Leased Premises or Building in substantially the same or better condition as immediately prior to the destruction or
damage, in which event rental shall be reduced proportionately to the loss of actual physical occupancy suffered by LESSEE, provided that, if such damage was the result of the actions or inaction's of LESSEE, its employees, agents, contractors,
invitees, licensees, patrons or others under its control, rental shall not be reduced during such period. 

          B.
If during the first one half (1/2) of the Term there should be any such damage
or destruction, but to an extent less than the said twenty (20%) percent of the
depreciated replacement cost as discussed above, this Lease shall continue and
LESSOR shall repair XXXXX 

18.        CONDEMNATION 

          A.           If,
at any time during the Term, (a) title to the entire Leased Premises should become
vested in a public or quasi-public authority by virtue of the exercise of expropriation,
condemnation  or other power in the nature of eminent domain, or by voluntary
transfer from the owner of the Leased Premises under threat of such a taking,
or (b) if less than the entire Leased Premises be thus taken, or transferred
in lieu of such a taking, but  it would be legally and commercially impossible
for LESSEE to occupy the portion of the Leased Premises remaining, and impossible
for LESSEE reasonably to conduct his trade or business therein, or then in either
event, the Term shall end as of the  time of such vesting of title, after which
neither party shall be further obligated to the other except for occurrences
antedating such taking. 

          B.           Should
there be such a partial taking or transfer in lieu thereof, but not to such an
extent as to make such continued occupancy and operation by LESSEE an impossibility,
then this Lease shall  continue on all of its same terms and conditions subject
only to a reduction in rent proportionate to such taking. It is provided, however,
that LESSOR shall have the right and option to terminate this Lease in the event
there is a partial taking or  transfer in lieu thereof which affects a portion
of the Building and/or the project to the extent that, in LESSOR'S reasonable
opinion, it is commercially impractical to continue the operation of the Building
or the project in a manner that will  justify the continuation of the Lease. 

          C.           In the
event of any such taking or private purchase in lieu thereof, all compensation
awarded for any taking (or sale proceeds in lieu thereof) of the fee or leasehold
interest shall be the property of LESSOR, and LESSEE shall have no claim thereto,
the same being hereby expressly waived by LESSEE. Any amounts specifically awarded
or agreed upon by LESSEE and the expropriating authority for the taking of LESSEE'S
removable trade fixtures shall be the property of LESSEE. LESSEE further grants
LESSOR exclusive authority to negotiate with any such authority for payment both
with respect to the interest of LESSOR and the leasehold interest of LESSEE in
the Leased Premises. 

19.        ENTRY
DURING TERM 

          A.           LESSOR
shall have the right to enter the Leased Premises throughout the Term for the
following purposes: (1) inspecting the general condition and state of repair
of the Leased Premises; (2)  performing such maintenance and other obligations
as may be required or permitted by this Lease of LESSOR; (3) showing the Leased
Premises to any prospective purchasers, lenders; (4) showing the leased premised
to prospective tenants during the last six (6) months of the Term or in the event
of Default by LESSEE, at any time; (5) taking any emergency action which LESSOR
in its sole discretion deems necessary to protect the Leased Premises, Land or
Building; (6) determining whether there has been a Default under this Lease;
and (7) any
other reasonable purposes. 

          B.           If
this Lease is not renewed or extended within one hundred twenty (120) days prior
to the end of the Term, LESSOR, its officers, agents or assigns, shall have the
right to erect on or about the Leased Premises a customary sign advertising the
Leased Premises, Building and/or Land for lease or for sale; and shall likewise
have the right to enter the Leased Premises for the purpose of showing the Leased
Premises to prospective tenants. 

20.        DEFAULT 

          The
following, whether one or more and whether occurring together or separately,
shall each be considered a breach and default by LESSEE under and of this Lease
("Default"): (i) failure to
timely pay all or part of any amount payable under this Lease within five (5)
days after the same shall be due; (ii) failure, for any reason whatsoever, of
LESSEE to perform or effect performance of any of the other terms, conditions,
obligations,  agreements or covenants to be observed or performed by LESSEE under
this Lease, within five (5) days
after written notice to LESSEE of its failure to do so; (iii) failure, without
any  grace period, to comply with the
provisions of Article 28. entitled "Environmental Hazards"; (iv) LESSEE or any
officer, agent, successor, employee, director, legal representative or  assign
of LESSEE shall falsify any report or information furnished to LESSOR; (v) LESSEE
or any guarantor of this Lease shall become bankrupt or insolvent or file or
have filed against it any debtor or bankruptcy proceeding pursuant to any statute,
 either of the United States or of any state, or for the reorganization or for
the appointment of a receiver or trustee of all or a portion of its property;
(vi) LESSEE or any guarantor of this Lease makes an assignment for the benefit
of creditors,  or petitions for or enters into a plan of arrangements; and (vii)
LESSEE shall abandon the Leased Premises or suffer this Lease to be seized or
otherwise taken under any levy, turnover order, writ of execution or any other
order, decree, writ or  judgment. 

21.        REMEDIES 

          A.           Upon each occurrence of Default, LESSOR shall have the option to pursue, at any time and from time to time, any one or more of the following remedies,
and/or any other remedy provided by law or in equity, without any notice or demand, LESSEE specifically waiving any municipal, county, state or federal law to the contrary: 

	                     	
(1)          	
Terminate this Lease; and/or
	 	
(2)	
Enter upon and take possession of the Leased Premises with or without terminating this Lease; and/or
	 	
(3)	
Alter and/or change all locks and other security devices at the Leased Premises with or without terminating this Lease;
	 

XXXXX

          C.           If
LESSOR repossesses the Leased Premises without terminating this Lease, LESSEE,
at LESSOR's option, shall be liable for and shall pay LESSOR within five (5)
days after written request all of the Total Monthly Payment and other payments
owed to LESSOR accrued through the date of such repossession, plus all amounts
required to be paid by LESSEE to LESSOR under this Lease through the date of
expiration of the Term diminished by all amounts received by LESSOR through reletting
the Leased Premises for the remainder of the Term. Actions to collect amounts
due by LESSEE to LESSOR under this Article 21.C. may be brought from time to
time, on one or more occasions, without the necessity of LESSOR's waiting until
expiration of the Term. 

          D.           Upon Default, in addition to any amount provided to be paid herein, LESSEE also shall be liable for and shall pay to LESSOR (i) brokers' fees incurred by LESSOR in connection with reletting
the whole or any part of the Leased Premises; (ii) the costs of removing and
storing LESSEE's or other occupant's property; (iii) the costs of repairing,
altering, remodeling or otherwise putting the Leased Premises and the fixtures,
equipment and systems located therein into condition acceptable to a new tenant;
and (iv) all reasonable expenses and fees, including but in no way limited to
attorney's fees, incurred by LESSOR in enforcing or defending LESSOR's rights
and/or remedies, (v) interest at the rate of eighteen 18.00% percent per annum
on all sums due and owed to LESSOR by virtue of any provision of this lease including
without limitation, Base Monthly Rent and late charges, from the time they are
due and payable until they are paid. 

          E.           In
    the event of termination and/or possession of the Leased Premises for a Default,
    LESSOR shall use reasonable efforts to re-let the Leased Premises and to
    collect rental after reletting, provided that LESSEE shall not be entitled
    to a credit or reimbursement from any proceeds in excess of the rental or
    other amounts owed under this Lease. LESSOR may relet the whole or any portion
    of the Leased Premises for any period, to any tenant and for any use and
    purpose. 

           F.         If
    LESSOR repossesses the Leased Premises, LESSOR shall have the right to (i)
    keep in place and use or (ii) remove and store all of the furniture, fixtures,
    equipment and other contents located at the Leased Premises, including that
    which is owned by or leased to LESSEE at all times prior to any foreclosure
    or repossession by LESSOR or third party having a lien thereon. LESSOR also
    shall have the right to relinquish possession of all or any portion of such
    furniture, fixtures, equipment and other property to any person (“Claimant”)
    who presents to LESSOR a copy of any instrument represented by Claimant to
    have been executed by LESSEE (or any predecessor of LESSEE) granting Claimant
    the right under various circumstances to take possession of such furniture,
    fixtures, equipment or other property, without the necessity on the part
    of LESSOR to inquire into the authenticity or legality of said instrument.
    The rights of LESSOR herein stated shall be in addition to any and all other
    rights that LESSOR has or may hereafter have at law or in equity; and LESSEE
    stipulates and agrees that the rights granted LESSOR are commercially reasonable. 

 22.        CONDITION
      AT TERMINATION AND KEYS

           The
    Leased Premises and keys to same shall be surrendered to LESSOR, broom clean
    (free of all debris and property of LESSEE), no later than 5:00 o’clock
    p.m. on the last day of the Term, with the entire Leased Premises in good
    repair, reasonable wear and tear excepted (except as provided to the contrary
    in the Lease), and with all equipment and systems in good operating condition.
    Should LESSEE surrender the Leased Premises or the equipment or systems in
    other than the above specified condition, LESSEE hereby grants LESSOR the
    right to have the Leased Premises placed in such condition and LESSEE agrees
    to pay the cost of such reconditioning, as well as the Total Monthly Payment
    for the period necessary to accomplish same, within ten (10) days after
    written request to LESSEE. At the end of the Term, LESSEE shall surrender
    all keys to LESSOR at the place then fixed for the payment of rent or such
    other location as specified by LESSOR in writing. All obligations of the
    LESSEE contained in this Article 22 shall survive the end of the Term. Notwithstanding
    any provision in this Lease to the contrary, all personal property of LESSEE
    that shall remain in the Leased Premises after the vacation of the Leased
    Premises by LESSEE shall be deemed abandoned, shall thereupon, at the election
    of LESSOR, become the property of LESSOR, and the LESSOR may dispose of such
    property in any way at any time, without notice, as LESSOR sees fit without
    liability or payment for same or damage thereto to LESSEE, at LESSEE’s
    sole expense. 

 23.        HOLDING
      OVER 

           Should
    LESSEE fail to surrender the Leased Premises or any part thereof at the end
    of the Term, such holding over shall constitute a month to month lease under
    the same terms and conditions as this Lease, except at a monthly rental equal
    to 150% of the rent due for the last full month of the Term.

 24.        FINANCIAL
      STATEMENTS 

           Within
    ten (10) days after written request, LESSEE shall furnish to LESSOR a copies
    of LESSEE’s income statements and balance sheets covering LESSEE’s
    last four (4) quarterly accounting periods, and shall include all corresponding
    notes, comments, opinions and statements. Such financial information shall
    be certified by LESSEE or a Certified Public Accountant to be materially
    accurate. 

25.        SUBORDINATION AND ATTORNMENT 

           A.            LESSEE agrees that this Lease is and shall remain subject to and subordinate
  to all present and future mortgages, deeds to secure debt, deeds of trust,
  security agreements, financing statements and all other security instruments
  and other similar encumbrances (the “Encumbrances”) affecting the
    Land or the Building, or any part thereof, and within ten (10) days after
    written request, LESSEE shall XXXXXX

representatives, shall be subject to lien, levy, execution or other enforcement procedure for the satisfaction of any such claim, judgment, injunction, decree, decision or ruling, nor shall any of the foregoing individuals
or entities have any liability, whether jointly, individually or derivatively, for any obligation of or any claim against LESSOR. 

27.        ESTOPPEL REPRESENTATIONS 

          Within ten (10) days after written request from LESSOR, LESSEE shall execute, acknowledge, verify and deliver to LESSOR written statements certifying
that this Lease in full force and effect (and, if there has been a modification thereof, that the same is in full force and effect as modified), that there are no uncured defaults on the part of LESSOR (or of any
such default exists, the specific nature and extent thereof), the date to which any rent or other charges have been paid in advance, if any, and such other matters as LESSOR may, in its sole discretion request. 

28.        ENVIRONMENTAL HAZARDS 

          A.           The
term "Hazardous Substances",
as used in this Lease shall mean all pollutants, contaminants, explosives, flammable
materials, compressed materials, corrosives and toxic, radioactive and hazardous
materials, and all other substances, the use, containment, existence, monitoring,
transporting, maintenance prevention and/or removal of which is monitored, restricted,
prohibited or penalized by an
"Environmental Law", which term shall mean all federal, state or local laws,
ordinances, statutes, orders, directives and decrees, and all orders, directives,
rulings, rules, regulations and decisions of a governmental or quasi-governmental
 authority, and all decisions, orders, decrees and judgments of a judicial or
quasi-judicial body, and all rules, regulations, rulings, orders, directives
and decisions of any regulatory or quasi-regulatory body relating to the foregoing
or the  pollution, contamination, regulation, monitoring, cleansing or protection
of the environment. LESSEE hereby agrees that: (i) no activity or inactivity
will be conducted on the Leased Premises that will produce any Hazardous Substances,
except for  such activities that are part of ordinary course for LESSEE'S business
activities and which are conducted in accordance with all Environmental Laws
and have been expressly and specifically approved in advance in writing by LESSOR
in its sole  discretion ("Permitted Activities"); LESSEE shall be responsible
for obtaining any required permits, certificates variances and all approvals
and for paying any fees and providing any testing required by any governmental
agency; (ii) the Leased  Premises will not be used in any manner for the storage
of any Hazardous Substances except for the temporary storage of "Permitted Materials" (as
defined in Article 28.B.), which are properly stored in a manner and location
meeting all Environmental  Laws and are expressly and specifically approved in
advance in writing by LESSOR in its sole discretion; (iii) no portion of the
Leased Premises will be used as a landfill, waste disposal facility, waste storage
facility or a dump; (iv) there will  be no installation of any above ground or
underground tanks or other storage facilities of any type; (v) no surface or
subsurface conditions will exist or come into existence that constitute, or with
the passage of time may constitute a public or  private nuisance; (vi) there
will be no Hazardous Substances brought onto the Leased Premises, except for
the Permitted Materials, and if so brought or found located thereon, the same
shall be immediately removed by LESSEE, with proper disposal  pursuant to all
Environmental Laws, and all required cleanup procedures shall be diligently undertaken
pursuant to all Environmental Laws. LESSOR shall have the right but not the obligation
to enter the Leased Premises for the purpose of inspecting  the storage, use
and disposal of Permitted Materials to ensure compliance with this Lease and
all Environmental Laws. Should it be determined, in LESSOR'S sole discretion,
that said Permitted Materials are being improperly stored, used, or disposed
of, then LESSEE shall take such corrective action within 24 hours after written
demand from LESSOR. If such corrective action is not so taken, LESSOR shall have
the right, but not the obligation, to perform such work and LESSEE shall reimburse
LESSOR  for all costs associated with said work within five (5) days after written
request. If at any time during or after the Term, the Leased Premises are found
to be so contaminated or subject to said conditions, LESSEE shall immediately
institute proper  and thorough cleanup procedures at LESSEE'S sole cost, and
LESSEE agrees to indemnify and hold LESSOR harmless from all claims, demands,
actions, liabilities, costs, expenses, damages and obligations of any nature
arising from, in connection with or  as a result of said conditions. If such
corrective action is not so taken, LESSOR shall have the right, but not the obligation,
to perform such work and LESSEE shall reimburse LESSOR for all costs associated
with said work within five (5) days after  written request. The foregoing indemnification
and the responsibilities of LESSEE in this Article 28 shall survive the end of
the Term. 

              B.          PERMITTED
MATERIALS: 

                                          N/A                                                                                 

                                                                                                                                  

29.        PROHIBITION OF LIENS 

          LESSEE
has no authority, express or implied, to create, place or allow any lien or encumbrance
of any kind or nature whatsoever upon the Leased Premises, Land or Building,
or in any manner to  bind the interest of LESSOR or LESSEE in the Leased Premises,
Land or Building or to charge any amount payable under this Lease for any claim
in favor of any person dealing with LESSEE, including those who may furnish materials
or perform labor for  any construction or repairs. LESSEE agrees that it will
pay or cause to be paid all sums for labor performed or materials furnished in
connection with any work performed on the Leased Premises, and that it will save
and hold LESSOR harmless from any  and all loss, cost or expense based on or
arising out of asserted claims or liens against the Leased Premises, Land or
Building or against the right, title and interest of the LESSOR in the Leased
Premises, Land or Building or under this Lease.  LESSEE agrees to give LESSOR
written notice within five (5) days of the placing of any lien or encumbrance
against the Leased Premises, Land or Building. 

30.        LESSOR'S LIEN 

32.        SEVERABILITY 

          If
any term, covenant or condition of this Lease or the application thereof to any
person or circumstance shall, to any extent and for any reason, be declared invalid
or unenforceable by a court  of law or regulatory agency, the remainder of this
Lease and the application of such term, covenant or condition to persons or circumstances
other than those which or to which such may be held invalid or unenforceable,
shall not be affected thereby, and each term, covenant or condition of this Lease
shall be valid and enforceable to the fullest extent permitted by law. 

33.        FURNISHING NOTICE 

          Any
notice, demand, request or writing which shall be required or permitted under
this Lease must be in writing and (i) delivered in person or by courier or (ii)
deposited, postage prepaid,  return receipt requested in the US Mail, certified
or registered, or (iii) via a nationally recognized overnight delivery service,
and addressed to: 

	                    	
      LESSOR:                
      
	
Sealy Hayden Road, L.P. 
	
	 	 

		
Attn: Mark P. Sealy 
	
	 	 

		
333 Texas Street, Suite 1050 
	
	 	 

		
Shreveport, Louisiana 71101 
	
	 

	
	 	 

		
Telephone No.: 
		
  318-222-8700 
	
	 	 

		
Facsimile No.: 
		
  318-222-4124 
	
	 

	
	 	
      LESSEE: 
    
	 

		 

	
	 

	
	
                               Legal Notice Address: 
	
	 	 

		
Universal Battery Corporation 
	
	 	 

		
Attn: Randy Hardin 
	
	 	 

		
4300 Wiley Post Road 
	
	 	 

		
Addison, Texas 75001
 	
	 

	
	 	 

		
Telephone No.: 
		
 (972) 387-0850 
	
	 	 

		
Telecopier No.: 
		 (972) 661-3746 
	
	 

	
	
                               Billing Address: 
	
	 	 

		
Universal Battery Corporation 
	
	 	 

		
Attn: Randy Hardin 
	
	 	 

		
4300 Wiley Post Road 
	
	 	 

		

      Addison, Texas 75001   	
	 

	
	 	 

		
Telephone No.: 
		
 (972) 387-0850 
	
	 	 

		
Telecopier No.: 
		
 (972) 661-3746 
	
	 

	
	
                               On-Site Contact: 
	
	 	 

		
Universal Battery Corporation 
	
	 	 

		
Attn: Randy Hardin 
	
	 	 

		
1720 Hayden Road 
	
	 	 

		
Carrollton, Texas 75006 
	
	 

	
	 	 

		
Telephone No.:      
		
To be provided in Suite Acceptance Memorandum 
	
	 	 

		
Telecopier No.: 
		
To be provided in Suite Acceptance Memorandum 
	

or such other address as LESSOR or LESSEE shall have most recently designated by written notice. Any notice, demand or request hereunder shall be deemed to have been received on the date of delivery, if delivered in person
or by courier, or on the date of receipt on the return receipt, if delivered by US Mail or overnight delivery service. 

34.        TITLES 

          Notations or titles appearing in this Lease are provided merely for ease of reference, and the parties hereto expressly acknowledge and agree that such notations and titles do not constitute a
part of this Lease, have no legal effect whatsoever in determining the rights or obligations of parties and shall have no bearing upon the meaning or interpretation of this Lease or any portion of it. 

35.        NON-WAIVER 

          The
failure by LESSOR to act upon a specific Default, failure or breach of any term,
covenant or condition in this Lease (whether once or more) is not and will not
be intended to be and shall not be deemed to be a surrender of the Leased Premises
or a waiver. 

37.        RECORDATION OF LEASE OR SHORT FORM 

          LESSEE
shall not record this Lease or a short form of this Lease, unless expressly approved
by LESSOR in writing. Within five (5) days after written request by LESSOR, LESSEE shall join LESSOR in
the execution of a memorandum or "short form" of this Lease for the purposes
of recordation at LESSOR'S sole discretion. The memorandum shall describe the
parties, the Leased Premises, and the Term of this Lease, and shall incorporate
this Lease by reference. 

38.        TIME OF ESSENCE 

          Time
is the essence with respect
to the performance of each of the payments, covenants and agreements in this
Lease. 

39.        GOVERNING LAW; JURISDICTION; VENUE 

          The laws of the State of Texas shall govern the validity, performance, interpretation and enforcement of this Lease and
all claims, suits, demands and actions relating to, in connection with and arising from this Lease and its subject matter, and all such claims, suits, demands and actions shall be made and brought in Dallas
County, Texas. 

40.        ACTS OF GOD; FORCE MAJURE 

          LESSOR
shall not be required to perform any term, condition or covenant of this Lease,
or be liable for any damages to LESSEE, so long as the performance or nonperformance
of the term,  condition or covenant is delayed, caused by or prevented by an
Act of God or Force Majeure. For purposes of this Lease, Act of God and Force
Majeure are defined as strikes, lock-outs, sit-downs, material or labor restrictions
by any governmental authority, unusual transportation delay, riots, floods, washouts,
explosions, earthquakes, fire, storms, weather (including wet grounds or inclement
weather which prevents construction), acts of the public enemy, wars, insurrections
or any other  cause not reasonably within the control of LESSOR and which by
the exercise of due diligence is unable, fully or in part, to prevent or overcome. 

41.        LESSEE'S AUTHORITY 

          Both
LESSEE and the individual(s) signing on behalf of LESSEE below hereby represent
and warrant that they are duly authorized to execute and deliver this Lease and
bind LESSEE to the terms thereof without the consent of any other individual,
entity or group of individuals and/or entities. 

42.        COMPLIANCE WITH LAW 

          All
agreements between LESSOR and LESSEE, whether now existing or hereafter arising,
are hereby limited so that in no contingency, whether by reason of demand or
acceleration or otherwise, shall any amount contracted for, charged, received,
paid or agreed to be paid to LESSOR exceed the maximum amount permissible under
applicable law. If, from any circumstances whatsoever, any amount would otherwise
be payable to LESSOR in excess of the maximum lawful amount, such payable to
LESSOR shall be reduced to the maximum amount permitted under applicable law;
and if from any circumstances LESSOR shall ever receive anything of value deemed
interest by applicable law in excess of the maximum lawful amount, an amount
equal to any excessive interest shall be applied to the reduction of the amounts
due and to become due under this Lease and not the payment of interest, or if
such excessive amount exceeds amounts due and to become due under this Lease,
such excess shall be refunded to LESSEE. This Article 42 shall control all agreements
between the LESSOR and LESSEE. 

          This Lease Agreement is executed as of the dates indicated below. 

	
      WITNESS: 
      
	 	
LESSEE: 
	
	 	 	 
	 

		 	
UNIVERSAL BATTERY CORPORATION 
	
	 	 	 
	 	 	 
	     /s/
    Mimi Tan 
	 	By:     /s/ Ian Edmonds                     
	 	 	 
	 	 	Printed Name:      Ian Edmonds      
	 	 	 
	               Mimi
    Tan 
	 	Its:     C.O.C.                                      
	 	 	 
		 	Date:     March 7, 2003                      
	 	 	 
	 	 	LESSOR:     /s/
      Julie Sansom Reese 
	 	 	                     Julie
    Sansom Reese, CFO 

	
      WITNESS: 
      
	 
		 

		 

	
	 

		 
		
SEALY HAYDEN ROAD, L.P. 
	
	 

		 
		
a Georgia limited partnership 
	
	 

	
	 

		 
		
By:           
		
Sealy Hayden Road GP, L.L.C 
	
	 

		 
		 

		
its general partner 
	
	 	 	 	 
	     /s/
        ???????
	 	 	By:     /s/ Mark P. Sealy                    
	 	 	 	 
	 	 	 	Printed Name:      Mark P. Sealy 
	 	 	 	 
	 	 	 	Its:                         Manager
	 	 	 	 
	
	 	 	Date:     3-14-03                                   

EXHIBIT "A" 

 SPACE OUTLINE

[GRAPHIC OMITTED] 

EXHIBIT "A-1" 

 ADJACENT SPACE 

[GRAPHIC OMITTED] 

EXHIBIT "B" 

LAND DESCRIPTION 

Being a tract or parcel of land situated in the City of Carrollton, Dallas County, Texas; and being a part of the John Meyer Survey, Abstract No. 939, and being part of a tract of land conveyed to Southwestern Town Lot
Corporation by deed dated December 20, 1962, recorded in Volume 5921, Page 285 of the Deed Records of Dallas County, Texas; and being more particularly described as follows: 

Beginning at a chisel mark at the intersection of the centerline of Hayden Road (50 feet wide) and the original Southerly line of Country Club Drive; 

Thence South 89 degrees 54 minutes East along the original
Southerly line of Country Club Drive a distance of 419.87 feet to a P.K. nail
set for corner; 

Thence South 0 degrees 30 minutes West along the centerline
of a 50 foot wide railroad easement a distance of 778.20 feet to a 1⁄2 inch
iron rod with  yellow plastic cap set for corner; 

Thence North 89 degrees 30 minutes West a distance
of 25.00 feet to a 1⁄2 inch
iron rod with yellow plastic cap set for corner at the beginning of a  curve
to the right; 

Thence in a Southwesterly and Westerly direction the
centerline of a 40 foot wide railroad easement and along said curve to the right
whose tangent bears South 14 degrees 17 minutes 04 seconds East, having a radius
of  382.00 feet, a central angle of 76 degrees 12 minutes 56 seconds, and an
arc length of 508.14 feet to a 1⁄2 inch
iron rod with yellow plastic cap set for corner at the end of said  curve to
the right; 

Thence North 89 degrees 30 minutes West a distance
of 23.86 feet to a chisel mark for corner in the centerline of Hayden Road (50
feet wide); 

Thence North 0 degrees 30 minutes East along the centerline of Hayden Road a distance of 1066.25 feet to the Point of Beginning and containing 413,233 square feet or 9.4865 acres, more or less. 

EXHIBIT "C" 

SPECIAL STIPULATIONS 

Monthly Rent 

Pursuant to paragraph 4.E of the Lease, the Base Monthly Rent shall be as follows: 

          The
Total Monthly Rent beginning February 10,
2003 through February 28, 2003 shall be $0.00/month.

          The
Total Monthly Rent beginning March 1, 2003
through February 28, 2005 shall be $17,885.00/month.

Work Items 

1.          Lessor
will, at Lessor's sole cost and expense, install one concrete ramp at a location
to be mutually agreed upon by Lessor and Lessee. 

  2.          Within
a reasonable time after Lessor leases the Adjacent Space as outlined and described
in Exhibit "A-1" ("Adjacent Space"), Lessor shall construct an eight (8) foot
chain link fence with razor wire topping between the Leased Premises and the
Adjacent Space ("Fence")
on the following terms: 

	          	
(a)          	
The Fence will be constructed using standard grade materials and workmanship in Lessor's reasonable discretion.
	 
	 	
(b)	
The Fence will comply with all federal, state and local laws, including, but not limited to, local building codes.
	 
	 	
(c)	
The Fence will be constructed at Lessor's sole cost and expense.	

Right of Refusal 

Commencing on the Commencement Date and ending on the
Expiration Date, and if there is no uncured default by Lessee under the Lease,
for the first offer Lessor receives to lease all or part of the Adjacent Space
which  Lessor desires to accept, Lessee shall have a one time right to lease
all the Adjacent Space if the Adjacent Space is available, with a term at least
coterminous with the Term and any extension of the Term, and on other terms and
conditions then  prevailing in the market for similarly situated space as the
Adjacent Space, as reasonably determined by Lessor. Lessee shall exercise the
right to first refusal by delivering written notice to Lessor ("Lessee's Notice")
within three (3) business  days of Lessor's written notice to Lessee of Lessor's
receipt of another prospective Lessee's offer, If Lessee does not properly and
timely provide Lessee's Notice within such three (3) business days, Lessee's
right of first refusal shall be  automatically null and void and of no further
force or effect. 

Within five (5) days following receipt of Lessee's
Notice, Lessor shall deliver to Lessee a written notice ("Lessor's Notice") specifying
the rental rate for the Adjacent Space. 

Lessee shall have five (5) days following delivery
of Lessor's Notice to notify Lessor in writing of Lessee's acceptance of Lessor's
rental rate determination. Lessee's failure to properly and timely notify Lessor
of such  acceptance within such period shall automatically render Lessee's right
of first refusal null and void and of no further force and effect. If Lessee
properly and timely accepts Lessor's rental rate determination, Lessor and Lessee
shall promptly enter into a lease for the Adjacent Space. 

Lessee's rights under this Exhibit C shall terminate if (i) this Lease or Lessee's right to possession of the Lease is terminated, (ii) Lessee, at any time during the Lease Term, assigns any of its interest in this Lease or
sublets any portion of the Leased Premises, (iii) Lessee fails to timely comply with any of its options or obligations under this Exhibit C, time being of the essence with respect to Lessee's exercise thereof. 

Access Within Building 

Until such time as Lessor has leased any portion of the Adjacent Space, Lessee shall have reasonable access to the utility room (containing phone and computer lines and equipment) on the second floor of the Building for the
purpose of establishing and maintaining Lessee's phone and computer services. 

EXHIBIT "D" 

RULES AND REGULATIONS 

The following Rules and Regulations have been adopted by LESSOR for the general care, protection and benefit of the Building and for the general comfort and welfare of all LESSEE's. 

  	1.               	LESSOR agrees to furnish LESSEE two keys serving
            the front exterior entrance to the Leased Premises without charge. Additional
            keys will be furnished at a charge of $5.00 each. LESSEE may change the lock(s) to the Leased Premises
            at LESSEE's expense upon the express written consent of LESSOR. Before
            or at the end of the Term of this Lease, all locks so changed will be
            returned to their original keyage. LESSEE shall not put additional locks
            or latches upon any door without the prior written consent of the LESSOR.
            Any and all locks so added on any door shall remain for the benefit of
      the LESSOR. 

	 	

	2.	 LESSEE will refer all contractors, contractor's
            representatives and installation technicians rendering any service on
            or to the Leased Premises for LESSEE, to LESSOR for LESSOR'S prior express
            written approval and supervision before performance of any service. This
            provision shall apply to all work performed on or about the Leased Premises,
            including but in no way limited to installation of telephones, telegraph
            equipment, electrical devices and attachments and installations of any
      nature affecting the Leased Premises. 

	 	

	3.	 LESSEE shall not at any time occupy any part
      of the Lease Premises or project as sleeping or lodging quarters. 

	 	

	4,	 LESSEE shall not install or operate on the
            Lease Premises or in any part of the building, any engine, or machinery,
            or conduct mechanical operations thereon or therein, or place or use
            in or about the Lease Premises any explosives, gasoline, kerosene, oil,
            acids, caustics, or any flammable, explosive or hazardous material without
      the prior express written consent of LESSOR. 

	 	

	5.	 LESSOR will not be responsible for lost or
            stolen personal property, equipment, money or jewelry from the Leased
            Premises regardless of whether or not such loss occurs when the area
      is locked against entry. 

	 	

	6.	 No dogs, cats, birds,
            fowl, or other animals shall be brought into or kept in or about
            the Lease Premises. 

	 	

	7.	 Employees of LESSOR
            shall not receive or carry messages for or to any LESSEE or other
            person, nor contract with or render free or paid services to any
            LESSEE or LESSEE's agents, employees or invitees. 

	 	

	8.	None of the parking,
            sidewalks, plaza, recreation or lawn areas, entries, passages, doors,
            elevators, hallways or stairways shall be blocked or obstructed,
            or any rubbish, litter, trash, or material of any nature placed,
            emptied or thrown into these areas or such area being used by LESSEE's
            agents, employees, contractors or invitees, licensees, patrons or
            other persons at any time for purposes inconsistent with their designation by LESSOR. 

	 	

	9.	 The water closets and
            other water fixtures shall not be used for any purpose other than
            those for which they were constructed, and any damage resulting to
            them from misuse, or by the defacing or injury of any part of the
            building shall be borne by the person who shall occasion it. No person
            shall waste water by interfering with the faucets or otherwise. 

	 	

	10.	 No person shall disturb
            occupants of the building by the use of any radios, record players,
            tape recorders, musical instruments, the making of unseemly noises,
            or any unreasonable use. 

	 	

	11.	 LESSEE and its employees,
            agents and invitees shall park their vehicles only in those parking
            areas designated by LESSOR, LESSEE shall furnish LESSOR with state
            automobile license numbers of LESSEE's vehicles and its employers'
            vehicles within five days after taking possession of the Leased Premises
            and shall notify LESSOR of any changes within five days after such
            change occurs. LESSEE shall not leave any vehicle in a state of disrepair
            (including without limitation, flat tires, out of date inspection
            stickers or license plates) on the Leased Premises or project. If
            LESSEE or its employees, agents or invitees park their vehicles in
            areas other than the designated parking areas or leave any vehicle
            in a state of disrepair, LESSOR, after giving written notice to LESSEE
            of such violation, shall have the right to remove such vehicles at
            LESSEE's expense. 

	 	 

AMENDMENT TO LEASE 

      This
    Amendment to Lease (the "Amendment") is made by and between Sealy
    Hayden Road, L.P., a
    Georgia limited partnership, hereinafter
    referred to as ("Lessor"), and Universal
    Battery Corporation, hereinafter referred
    to as ("Lessee"). 

 WITNESSETH 

	          	 A.     	
      Lessor and Lessee hereby
          confirm and ratify, except as modified below, all of the terms and
          conditions and covenants; in that certain written lease agreement dated March
          14, 2003 (the "Original" Lease") between Lessor and Lessee for the
          leasing of the following described property:

	 	 	 
	 	 	
      
        Approximately 73,000 square
        feet of office/warehouse space (the "Leased
        Premises") 

                located at 1720
                Hayden Road, Carrollton, Texas 75006. 
    
	 	 	 
	 	
      B.  
	
      Lessee warrants that the
          Lessee has accepted and is now in possession of the Leased Premises
          and Lessor and the Lessee warrant that the Lease is valid and presently
          in full force and effort. Lessee has accepted the Premises in its present "as
          is" condition.   

	  
	 	
      C.  
	
      All capitalized, defined
          terms used in the Original Lease shall have in this Amendment the meanings
          ascribed to them in the Original Lease, unless specifically otherwise
          indicated in this Amendment.   

	 	  	
      

	 	
      D.  
	
      The parties intend for the
          Original Lease together with this Amendment to be read together as
          one unified document (the "Lease").  

         The Lease is hereby amended as
      follows: 

	          	1.       	Pursuant to Section
            1 of the Original Lease, the
            Leased Premises is hereby amended as follows: 

	 	 	 	 
	 	 	          	
      Beginning February
            1, 2004, the Leased Premises
            shall be increased to approximately 92,200
            square feet (see the attached Exhibit A). 

	 	 	 	

	 	 	 	
      Beginning July
            1, 2004, the Leased Premises
            shall be increased to approximately 148,840
            square feet (see the attached Exhibit A-1). 

	 	 	 	

	 	2.	Pursuant to Section
            2 of the Original Lease, the
            Term is hereby amended to expire
            December 31, 2009. 

	 	 	 
	 	3.	
      Pursuant to Section 4.E. of
          the Original Lease, the Base Monthly Rent is hereby amended as follows: 

	 	 	 
	 	 	 	
      Beginning February
            1, 2004 though June
            30, 2004 the Base Monthly Rent
            shall be $22,589.00 per month. 

	 	 	 	

	 	 	 	
      Beginning July
            1, 2004 through December
            31, 2004 the Base Monthly Rent
            shall be $0.00 per month. 

	 	 	 	

	 	 	 	
      Beginning January 1, 2005 through February
            28, 2006 the Base Monthly Rent
            shall be $21,705.83 per month. 

	 	 	 	

	 	 	 	
      Beginning March
            1, 2006 through December
            31, 2007 the Base Monthly Rent
            shall be $24,806.67 per month. 

	 	 	 	

	 	 	 	
      Beginning January 1,
            2008 through December 31, 2009 the Base Monthly Rent shall
            be $27,907.50 per month. 

	          	 7.     	
      Lessor will, at its sole
          cost and expense, cause the following Work Items to be completed on
          or before July 1, 2004:

	 
	 	 	     	 1.          	 Construct new fire
        rated demising wall.
	 
	 	 	 	 2.	
      Separate utilities between
          Leased Premises and Suite 1722.

	 
	 	 	 	 3.	
      Paint and carpet existing
          office area.

	 
	 	 	 	 4.	
      Enclosed existing warehouse
          area below the most northern mezzanine office. HVAC and flooring will
          be provided in this area.

	 
	 	 	 	 5.	
      Construct nine (9) new offices
          within existing bullpen area located on northern end of the second
          story.

	 
	 	 	 	 6.	
      Construct six (6) new office
          within existing bullpen area located on southern end of the second
          story. (15 Total privates shall be provided, exact location to be determined.) 

	 
	 	 	 	7. 	
      Construct approximately
          2,000 square feet of new office space directly below most southern
          end of mezzanine office space. Configuration is yet to be determined,
          but typical layout is assumed. Lessor and Lessee agree to equally split the
          cost of this improvement. Lessor
          will send Scope of Work out for bid by three separate contractors;
          work will be awarded to a contractor mutually agreed upon by Lessor
          and Lessee. 

	 	 	 	 	 
	 	 	
      
        Any additional modifications desired by
            Lessee shall be completed by Lessor at the sole cost of Lessee and
            will be subject to prior approval by Lessor. Lessee shall submit
            requested modifications in writing to Lessor for approval; Lessor's
            approval shall not be unreasonably withheld or delayed. Any improvement
            costs due Lessor from Lessee as a result of such modifications, shall
            be payable by Lessee one-half (1/2) upon commencement of work and
            one-half (1/2) upon completion or occupancy by Lessee, whichever
            comes first.  

        All Work Items shall be performed in compliance
            with all applicable permits, laws and requirements of public authorities.
            Work Items shall be diligently performed in a good and workmanlike
            manner, using new materials and equipment at least equal in quality
            and class to building standards as established by Lessor. 

    

	 	 	 
	 	8. 	 Pursuant to Section 33 of
        the Original Lease, the Notices are hereby amended as follows: 
	 	 	 

	          	      	
      LESSOR:  
	 Sealy Hayden
          Road, L.P.  
	 	 	 	 Attn: Mark P. Sealy  
	 	 	 	 Sealy & Company,
        Inc.  
	 	 	 	 333 Texas
        Street, Suite 1050  
	 	 	 	 Shreveport, Louisiana 71101  
	 	 	  	
      Telephone No.: 318-222-8700  

	 	 	  	
      Telecopier No.: 318-222-4124  

	  
	 	 	
      LESSEE:  
	  
	 	 	
                               Legal
          Notice Address:  

	 	 	 	 Universal Battery Corporation  
	 	 	 	 Attn: Randy Hardin  
	 	 	 	 1720 Hayden Road  
	 	 	 	 Carrollton, Texas 75006  
	 	 	 	 Telephone No.:  
	 	 	 	 Telecopier No.:  
	  
	 	 	                  Billing
        Address:  
	 	 	 	 Universal Battery Corporation  
	 	 	 	 Attn: Randy Hardin  
	 	 	 	 1720 Hayden Road  
	 	 	 	 Carrollton, Texas 75006  
	 	 	 	 Telephone No.:  
	 	 	 	 Telecopier No.:  

 

XXXXXX

 

	                         	then prevailing in the market
          for similarly situated space as the Adjacent Space, as reasonably determined
          by Lessor. Lessee shall exercise the right to first refusal by delivering
          written notice to Lessor ("Lessee's Notice") within three (3) business
          days of Lessor's written notice to Lessee of Lessor's receipt of another
          prospective Lessee's offer, If Lessee does not properly and timely
          provide Lessee's Notice within such three (3) business days, Lessee's
          right of first refusal shall be automatically null and void and of
          no further force or effect. 

        Within five (5) days following
            receipt of Lessee's Notice, Lessor shall deliver to Lessee a written
            notice ("Lessor's Notice") specifying the rental rate for the Adjacent
            Space.

        Lessee shall have five (5)
            days following delivery of Lessor's Notice to notify Lessor in writing
            of Lessee's acceptance of Lessor's rental rate determination. Lessee's
            failure to properly and timely notify Lessor of such acceptance within
            such period shall automatically render Lessee's right of first refusal
            null and void and of no further force and effect. If Lessee properly
            and timely accepts Lessor's rental rate determination, Lessor and
            Lessee shall promptly enter into a lease for the Adjacent Space. 

         Lessee's rights under this
            Right of Refusal shall terminate if (i) this Lease or Lessee's right
            to possession of the Lease is terminated, (ii) Lessee, at any time
            during the Lease Term, assigns any of its interest in this Lease
            or sublets any portion of the Leased Premises, (iii) Lessee fails
            to timely comply with any of its options or obligations under this
            Right of Refusal, time being of the essence with respect to Lessee's
            exercise thereof. 

	 	 

	          	 10.   	 Except as herein expressly specified,
        all terms and conditions of the Lease shall remain in full force and
        effect.
	 

	
      WITNESSES:  
	 	 LESSEE:  
	  	 	 UNIVERSAL BATTERY CORPORATION  
	 	 	 
	 	 	 
	 
	 	By:     /s/ Randy Hardin                                
	 	 	               Randy
        Hardin, CEO 
	 	 	 
		 	Date:     12-23-03                                            
	 	 	 
	 	 	LESSOR: 
	 	 	 SEALY HAYDEN ROAD, L.P.  
	 	 	 a Georgia limited partnership  

	      
	  	  	 By:      
	 Sealy Hayden Road
          GP, L.L.C  
	  	  	  	 its general partner  
	 	 	 	 
	     /s/
          Carla Dupre 
	 	 	By:     /s/ Mark P. Sealy                              
	 	 	 	                Mark
        P. Sealy, Manager  
	 	 	 	 
		 	 	Date:     1-12-04                                            

 

 EXHIBIT A

 Space Outline

[GRAPHIC OMITTED] 

EXHIBIT A-1

 Space Outline

[GRAPHIC OMITTED]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]