Document:

STANDARD INDUSTRIAL LEASE

Exhibit 10.4

	
STANDARD INDUSTRIAL LEASE

 OF CALDWELL LAHAYE

 REAL ESTATE ASSOCIATES

	
1.

	
Parties. This Lease, dated, for reference purposes only Nov. 01, 2004, is made by and between David D. Caldwell and Jimmie D. LaHaye (herein called “Lessor”) and Advanced Cellular Technology, Inc. dba Affordable Cars and Trucks (herein called
“Lessee”).

	
          

	
	
2.

	
Premises.  Lessor hereby leases to Lessee and Lessee lease form Lessor for the term, at the rental, and upon all of the conditions set for the herein, that certain real property situated in the County of Harris, State of Texas, commonly know as 5715 North
Freeway, Houston, Texas.  Said real property including land and all improvements thereon, is herein called “the Premises”.

	
          

	
	
3.

	
Term.

	
          

	
	
          

	
3.1

	
Term.  The term of this Lease shall be for sixty (60) months commencing on Nov. 01, 2004 and ending on Oct. 31, 2009, unless sooner terminated pursuant to any provisions hereof.

	
          

	
3.2

	
Delays in Commencement.  Notwithstanding said commencement date.  If for any reason Lessor cannot deliver possession of the Premises to Lessee on said date, Lessor shall no t be subject to any liability therefore, nor shall such failure affect the
validity of this Lease or the obligations of Lessee hereunder or extend the term hereof, but in such case Lessee shall not be obligated to pay rent until possession of the Premises is tendered to Lessee; provided, however, that if Lessor shall not have delivered
possession of the Premises within sixty (60) days from said commencement date, Lessee may, at Lessee’s option, by notice of writing to Lessor with ten (10) days thereafter, cancel this Lease, in which event the parties shall be discharged from all obligations
hereunder.  If Lessee occupies the Premises prior to said commencement date, such occupancy shall be subject to all provisions hereof, such occupancy shall not advance the termination date, and Lessee shall pay rent for such period at the initial monthly rates
set forth below.

	
          

	
          

	
	
4.

	
Rent.  Lessee shall pay to Lessor as rent for the Premises the sum of $7,865.00 per month.  In addition to the monthly specified above, as additional consideration for the Lease, Lessee agrees to pay to Lessor monthly a sum equal to 1/12 of the estimated
Insurance coverage (unless Lessee elects to provide the coverage as set forth below).  The montly payments for the Real Property taxes shall be adjusted annually based upon 1/12th of the total Real Property taxes for the prior year.  At the end
of each calendar year when actual amounts of taxes are known, if the aggregate monthly payments by Lessee to Lessor shall exceed total Real Property taxes and insurance premiums for the calendar year, Lessor will refund to Lessee such excess; on the other hand if the
aggregate monthly payments by Lessee to Lessor shall be less than the combined Reap Property taxes and insurance for the year then Lessee shall within ten (10) days after notice by Lessor pay such deficiency.  Said monthly installments of rent and Real Property
taxes and insurance shall became due and payable in advance on the first day of each month of the term hereof.  Lessee shall pay Lessor upon the execution hereof the sum of $ 9,293.00 as rent and Real Property taxes and insurance for the first month of the lease
term.  Any partial month shall be prorated.

	
5.

	
Delivery and Commencement Dates.  Lessor shall  deliver possession of the Premises to Lessee on or before Nov. 01, 2004 ( the “Delivery Date”).  The rent and other charges hereunder shall commence on Nov. 01, 2004.

	
          

	
	
6.

	
Security Deposit.  Lessee shall deposit with Lessor upon execution hereof $ 7,865.00, as security deposit for Lessee’s faithful performance of Lessee’s obligations hereunder.  If Lessee fails to pay rent or other charges due hereunder, or
otherwise defaults with respect to any provision of this Lease, Lessor may use, apply or retain all or any portion of said deposit for the payment of any rent or other charge in default, or for the payment of any other sum to which Lessor may become obligated by
reason of Lessee’s default, or to compensate Lessor for any loss or damage which Lessor may suffer thereby.  If Lessor so uses or applies all or any portion of said deposit, Lessee shall within ten (10) days after written demand therefore deposit cash with
Lessor in an amount sufficient to restore said deposit to the full amount hereinabove stated and Lessee’s failure to do so shall be a material breach of this Lease.  Lessor shall not be required to keep said deposit separate from its general
accounts.  If Lessee performs all of Lessee’s obligations hereunder, said deposit, or so much thereof as has not theretofore been applied by Lessor shall be returned, without payment of interest or other increment for its use, to Lessee ( or, at
Lessor’s option, to the last assignee, if any of Lessee’s interest hereunder) at the expiration of the tern hereof, and after Lessee has vacated the Premises.  No trust relationship is created herein between Lessor and Lessee with respect to said
Security Depost.

	
          

	
	
7.

	
Renewal Option.  In the event that Lessee is not then in default under this Lease, it shall have the option to renew this Lease for one (1) successive additional tern of five (5) years, commencing term hereof, as applicable, provided that at least ninety (90)
days prior to expiration of the initial term or such renewal term, as applicable, Lessee notifies Lessor in writing of its election to exercise such option to renew.  If Lessee exercises any such renewal option, this Lease, as so renewed, shall be subject to and
upon all of the terms, provisions, covenants and conditions contained herein, except that the base rental rate applicable to renewal terms shall be increased to $8,650.00 plus tax and insurance.  Any termination of this Lease shall likewise terminate any
unexercised renewal options.

	
          

	
	
8.

	
Option to Buy.  Lessee shall have the option to purchase the property for $1,000,000.00, putting down $200,00.00 an a note for $800,00.00  payable in monthly installments at 10% annual rate until not is paid in full.  The amortization term to be
determined by mutual agreement.

	
          

	
	
9.

	
Environmental.

	
          

	
          

	
	
          

	
9.1

	
Lessee shall assume full responsibility for any and all remedial action required to correct any environmental contamination relating to the Premises, which occurs solely as a result of Lessee’s use and occupancy of the Premises.

	
          

	
9.2

	
Lessee covenants that it will not use the Premises or permit the Premises to be used iin a manner that would cause (i) the Premises to become a hazardous waste management facility within the meaning of the Resource Conservation and Recovery Act of 1976, 42 U.S.C.
6901 et seq. or any similar state law, or (ii) a release of threatened release of hazardous substance or solid wastes from the Premises.

	
          

	
9.3

	
Lessee covenants that it will not dispose or permit the disposal of any solid waste, as that term is defined in the Resource Conservation and Recovery Act of 1976, 42 U.S.C. 6901, et seq., on, above or under the Premises without the prior written

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consent of Lessor.  Lessor’s decision to give or withhold consent will be within the sole discretion of Lessor.

	
          

	
9.4

	
Lesse agrees to defend, indemnify and hold harmless Lessor, their successors and assigns, from any claim, demand or cause of action asserted against Lessor (including reimbursement of nay associated reasonable attorney’s fees and cost) that arises, directly
or indirectly, from the presence of any hazardous waste, hazardous substance, hazardous constituent or other environmental contaminant on, above or under the Premises caused by Lessee’s use and occupancy of the Premises.

	
          

	
9.5

	
Lessor agrees to defend, indemnify and hold harmless Lessee, their successors and assigns, from any claim, demand or cause of action asserted against Lessee (including reimbursement of nay associated reasonable attorney’s fees and cost) that arises, directly
or indirectly, from the presence of any hazardous waste, hazardous substance, hazardous constituent or other environmental contaminant on, above or under the Premises, except for contamination caused by Lessee’s use and occupancy of the Premises.

	
          

	
9.6

	
Lessee agrees that after the date of occupancy, upon evidence of any hazardous contamination of the Premises caused by Lessee’s use and occupancy of the Premises, Lessee will pay for, or cause to be paid for, a Phase I Environmental study.  If that
study indicates any contamination to be present which has been caused by Lessee, Lessee shall, at Lessee’s expense, have the a Phase II Environmental study performed, and shall at Lessee’s expense, have the contamination problem caused by Lessee corrected
according to the requirements of the Phase II Environmental Survey and in accordance with applicable Texas Natural Resource Conservation Commission and EPA regulations.

	
          

	
9.7

	
Lessor will furnish Lessee a Phase I Environmental study showing the property to be free of pollutants together with a  letter from Penske Truck Leasing informing us of the release from the Texas Water Commission.  Lessee shall have the right to obtain
an additional Phase I Environmental study performed prior to the Commencement Date of this Lease.  If Lessee finds a substantial exception to the Phase I Environmental study, Lessee will notify Lessor in writing and Lessor will have a reasonable time to correct
any deficiency.

	
          

	
9.8

	
Should any part of these restrictions be deemed illegal, invalid, or unenforceable, it is agreed that these restrictions shall be enforceable to the maximum extent permitted by law and such illegality invalidity or unenforceability of any portion of these
restriction shall not affect or lessen the enforceability of remaining portions of these restrictions which are not deemed illegal, invalid, or unenforceable.

	
          

	
9.9

	
It is agreed that these Restriction are covenants running with the land, and shall be binding on the undersigned, and all successor owners of the hereinabove described Subject Property.

	
          

	
	
10.

	
Maintenance,  Lessor shall at its expense maintain the foundation, roof and the structural soundness of the exterior walls (excluding all windows, window glass, plate glass and all doors) in good repair and condition except damage cause by Lessee or their
invitees.

	
          

	
	
11.

	
Utilities.  Lessee shall pay for all water, gas, heat, light, power, telephone and other utilities and services supplied to the Premises, together with any taxes thereon.  If any such services are not separately metered to Lessee, Lessee shall pay a
reasonable proportion to be determined by Lessor of all charges jointly metered with other premises.

	
          

	
	
12.

	
HVAC Warranty.  Lessor shall cause the HVAC and related equipment on the Premises to be in good working order and repair for a period of thirty (30) days after the

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Commencement Date.  Any repairs needed by HVAC and related equipment during such thirty (30) day period shall be performed at Lessor’s expense.

	
          

	
	
13.

	
Alterations.  Lessee may make such non-material or non-structural alterations, changes and improvements in or upon the Premises and any modifications or improvements to the parking areas on the Premises during the term hereof as it may desire, all at its sole
cost, risk, expense, liability, use, occupancy or maintenance f the Premises and all areas appurtenant thereto.  Such insurance shall be a combined single limit policy in an amount not less than $1,000,000.  The policy shall contain cross liability
endorsements and shall insure performance by Lessee if the indemnity provisions of this Paragraph.

	
          

	
	
          

	
13.1

	
Property Insurance.  (a) The insuring party shall obtain and keep in force during the term of this Lease, policy or policies of insurance covering 1055 or damage to the Premises, in the amount of full replacement value thereof, as the same may exist from time
to time, which replacement value is now $318,681.00, against all perils included within classification – of fire, extended coverage, vandalism, malicious mischief, special extended perils (all risk). 9b)  If the Lessor is the insuring party, the Lessor
will not insure Lessee’s fixtures, equipment or tenant improvements unless the tenant improvements have become part of the Premises under Paragraph 11 hereof.  But if Lessee is the insuring party, the Lessee shall insure its fixtures, equipment and tenant
improvements.  Not more frequently than each three years, if, in the opinion of Lessor, the amount of property insurance required hereunder is not adequate, the insuring party shall increase said insurance coverage as required by Lessor.

	
          

	
          

	
	
          

	
          

	
However, such increase may be more frequent than each three years if required by the insurance carrier in order to maintain insurance for the full replacement value of the Premises.

	
          

	
          

	
	
14.

	
Waiver of Subrogation.  Lessee and Lessor each hereby waive any and all rights of recovery against the other, or against the officers, employees, agents and representatives of the other, for loss of or damage to such waiving party or its property or the
property of others under its control to the extent that such loss or damage is insured against under any insurance policy in force at the time of such loss or damages.  The insuring party shall, upon obtaining the policies of insurance required hereunder give
notice to the insurance carrier or carriers that the foregoing mutual waiver of subrogation is contained in the Lease.

	
          

	
	
15.

	
Indemnity.  Lesee shall indemnify and hold harmless Lessor from and against any and all claims arising from Lessee’s use of the Premises, or from the conduct of Lessee’s business or from any activity, work or things done, permitted or suffered by
Lessee on or about the Premises or elsewhere and shall further indemnify and hold harmless Lessor from and against any and all claims arising from any breach or default in the performance of nay obligations on Lessee’s part to be performed under the terms of
this Lease, or arising from any negligence of the Lessee or any of Lessee’s agents, contractors or employees and from and against all cost, attorney’s fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding
brought thereon and in case any action or proceeding be brought against Lessor by reason of such claim.  Lessee upon notice from Lessor shall defend the same at Lessee’s expense by counsel satisfactory to Lessor.  Lessee, as a material part of the
consideration to Lessor, hereby assumes all risk

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of damage to property or injury to person, in, upon or about the Premises arising from any cause and Lessee hereby waives all claims in respect thereof against Lessor.

	
          

	
	
16.

	
Exemption of Lessor from Liability. Lessee hereby agrees that Lessor shall not be liable for injury to Lessee’s business or any loss of income there from or for damage to the goods, wares, merchandise or other property of Lessee.  Lessee’s
employees, invitees, customers or nay other person in or about the Premises nor shall Lessor be liable for injury to the person of Lessee.  Lessee’s employees, agents or contractors, whether such damage or injury is cause by or result from fire, steam,
electric, gas, water or rain or from the breakage, leakage, obstruction or other defects of pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures, or from any other cause, whether the said damage or injury results from condition
arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources or places and regardless of whether the cause of such damage or injury or the means of repairing the same is inaccessible to Lessee. 
Insurance carrier to be approved by Lessor and the policy endorsed to state Lessor’s interest.

	
          

	
	
17.

	
Compliance.  Lessor shall cause the Premise to comply with all laws, orders and requirements of all governmental entities as of the Commencement Date of this Lease. Lessee will be responsible during the term of the lease and hold Lessor harmless from
non-compliance.

	
          

	
	
18.

	
Lessor’s Liens.  Lessor hereby waives any and all statutory or contractual Lessor’s liens covering any of Lessee’s property from time to tome located on the Premises. Lessee agrees not to encounter Lessor’s interest.

	
          

	
	
19.

	
Signs. Lessee shall have the right to install signage which is the maximum allowed by the applicable governmental regulations and ordinances. Lessor will use its reasonable effort, at no cost and expense to Lessor, to fully cooperate with Lessee in filing any
required signage application permit and/or variance for said signage or with respect to the Premises generally.

	
          

	
	
20.

	
Condemnation. If 25% or more of the frontage area of the Premises is taken by eminent domain, Lessee shall have the right to terminate the Lease.

	
          

	
	
21.

	
Sublease. Lessee shall have the right to assign the Lease and to sublease all or any portion of the Premises with the prior consent of Lessor, which consent shall not be unreasonable withheld, conditioned or delayed. Lessor shall deliver its approval or
disapproval (including specific reasons for such disapproval) within five (5) days after Lessor receives Lessee’s request in writing.

	
          

	
	
22.

	
Acceleration. Notwithstanding any provision contained in the Lease to the contrary, Lessor shall never be entitled to accelerate the rent due under the Lease as a result of a default by Lessee.

	
          

	
	
23.

	
Condition to Lessee’s Obligation. Lessee’s obligations (including the obligation to pay rent) under this Lease are expressly conditioned upon Lessee’s obtaining a Certificate of Occupancy for the Premises.

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24.

	
Reasonableness.  Notwithstanding any provision contained in the Lease to the contrary, Lessor shall always be required to act reasonably in exercising any of its rights, approvals or discretion under this Lease.

	
          

	
	
25.

	
Fixtures.  All fixtures (including light fixtures) installed by Lessee in the Premises shall remain the sole property of Lessee, and upon termination of this lease, Lessee shall have the right to remove same.

	
          

	
	
26.

	
Use.  The Premises shall be used and occupied only for used car dealership and related business.

	
          

	
	
27.

	
Late Charge.  Lessee hereby acknowledges that late payment by Lessee to Lessor of rent and other sums due hereunder will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such
costs, include but are not limited to , processing and accounting charges and late charges which may be imposes on Lessor by the terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of rent or any other sum due from Lessee shall
not be received by Lessor or Lessor’s designee within ten (10) days after such amount shall be due. Lessee shall pay to Lessor a late charge equal of 6 % of such overdue amount. The parties hereby agree that such late charge represents a fair and reasonable
estimate of the costs Lessor will incur by reason of late payment by Lessee. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s default with respect to such overdue amount, nor prevent Lessor from exercising any of the
other rights and remedies granted hereunder.

	
          

	
	
28.

	
Notices.  Any notice required pr permitted to be given hereunder shall be in writing and may be given by personal delivery or by certified mail, and if given personally or by mail, shall be deemed sufficiently given if addressed to Lessee or to Lessor at the
address noted below the signature of the respective parties, as the case may be. Either party may by notice to the other specify a different address for notice purposes except that upon Lessee’s taking possession of the Premises, the Premises shall constitute
Lessee’s address for notice purposes. A copy of all notices required or permitted to be given to Lessor hereunder shall be concurrently transmitted to such parties at such address as Lessor may from time to time hereafter designate by notice to Lessee.

	
          

	
	
29.

	
Holding Over.  If Lessee remains in possession of the Premises or any part thereof after the expiration of the term hereof without the express written consent of Lessor, such occupancy shall be a tenancy from month-to-month at a rental in the amount of the
last rental plus all other charges payable hereunder, and upon all the terms hereof applicable to a month-to-month tenancy.

	
          

	
	
30.

	
Choice of Law.  This lease shall be interpreted under the laws of the State of Texas.

	
          

	
	
31.

	
Lessor’s Access.  Lessor and Lessor’s agents shall have the right to enter the Premises at reasonable times for the purpose of inspecting the same, showing the same to prospective purchasers, or lenders, or lessees, and making such alterations,
repairs, improvements or additions to the Premises or to the building of which they are a part as Lessor may deem necessary or desirable. Lessor may at any time place on or about the Premises any ordinary “For Sale” signs and Lessor may at any time during
the last 120 days of the term

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hereof place on or about the Premises any ordinary “For Lease” signs, all without rebate of rent or liability to Lessee.

		
	
32.

	
Default Remedies.

	
          

	
	
          

	
32.1

	
Defaults. The occurrence of any one or more of the following events shall constitute a material and breach of this Lease by Lessee.

	
          

	
          

	
(a)

	
The vacating or abandonment of the Premises by Lessee.

	
          

	
          

	
(b)

	
The failure by Lessee to make any payment of rent or any other payment required to be made by Lessee hereunder, as and when due, where such failure shall continue for a period of three days after written notice thereof from Lessor to Lessee.

	
          

	
          

	
(c)

	
The failure by Lessee to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Lessee, other than described in paragraph (b) above, where such failure shall continue for a period of (30) days are reasonably
required for its cure, then period and thereafter diligently pursues such cure to completion.

	
          

	
          

	
(d)

	
(I) The making by Lessee of any general assignment or general arrangement for the benefit of creditors; (ii) the filing by or against Lessee of a petition to have Lessee adjudged a bankruptcy (unless, in the case of a petition filed against Lessee, the same is
dismissed within (60) days: (iii) the appointment of a trustee of receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where possession is not restored to Lessee within 30 days;
or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within 30 days.

	
          

	
          

	
(e)

	
The discovery by Lessor that any financial statement given to Lessor by Lessee, any assignee of Lessee, and subtenant of Lessee, any successor in interest of Lessee or any guarantor of Lessee’s obligations, hereunder, and any of them, was materially
false.

	
          

	
          

	
          

	
	
          

	
32.2

	
Remedies.  In the event of any such material default or breach by Lessee, Lessor may at any time thereafter, with our without notice or demand and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such default
or breach:

	
          

	
          

	
(a)

	
Terminate Lessee’s right to possession of the Premises by any lawful means, in which case the Lease shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event Lessor shall be entitled to recover from Lessee all
damages incurred by Lessor by reason of Lessee’s default including but not limited to, the cost of recovering possession of the Premises; expenses of relating, including necessary renovation and alteration of the Premises, reasonable attorney’s fees, and
any real estate commission actually paid; the worth at the time of award by the court having jurisdiction thereof of the amount by which the unpaid rent for the balance of the term after the time of such award exceeds the amount of such rental loss for the same
period that Lessee proves could be reasonably avoided; that portion of the leasing commission paid by Lessor pursuant to Paragraph 15 applicable to the unexpired term of this Lease.

	
          

	
          

	
(b)

	
Maintain Lessee’s right to possession in which case this Lease shall continue in effect whether or not Lessee shall have abandoned the

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Premises. In such event Lessor shall be entitled to enforce all of Lessor’s rights and remedies under this Lease, including the right to recover the rent as it becomes due hereunder.

	
          

	
          

	
(c)

	
Pursue any other remedy now or hereafter available to Lessor under the laws or judicial decisions of the State in which the Premises are located.

	
          

	
	
32.

	
Utilities.  Lessee shall pay for all water, gas, heat, light, power, telephone and other utilities and services supplied to the Premises, together with any taxes hereon. If any such services are not separately metered to Lessee, Lessee shall pay a reasonable
proportion to be determined by Lessor of all charges jointly metered with other premises.

	
          

	
	
33.

	
Time of Essence.  Time is of the essence.

EXECUTED at __________________________        _____________________________

                                                                                   
David Caldwell

On ____________________________________       ______________________________

                                                                                   
Jimmie D. LaHaye

Address            923 Epperson
Way                                11648 Village Place

                        Sugarland, TX
77479                             Houston, TX 77077

EXECUTED at __________________________        Advanced Cellular Technology, Inc.

On ____________________________________       By ___________________________

                                                                                   
By ___________________________

8Exhibit 10.5

Exhibit 10.5

THE COMMERCIAL LEASE

This lease agreement is made and entered into by and between TRANSWORLD CORPORATION (Landlord) and AUTO UNDERWRITERS OF AMERICA, INC. (Tenant). Landlord hereby leases to Tenant and Tenant hereby leases from
Landlord that certain property with the improvements thereon known as 8555 Beechnut, Houston, Texas 77036, as more particularly described on the attached Exhibit “A”.

                The primary term of this lease shall be one (1) year commencing on July 1, 2005, and ending at 12:00 p.m. on June 30, 2006, upon the
following terms, conditions and covenants:

	
          

	
1.

	
UTILITIES.  Tenant shall pay all charges for utility services to the lease premises.

	
          

	
          

	
	
          

	
2.

	
HOLDING OVER.  Failure of Tenant to surrender the leased premises at the expiration of the lease constitutes a holding over which shall be construed as a tenancy from month to month at a
rental of $6,000.00 per month.

	
          

	
          

	
	
          

	
3.

	
RENT.  Tenant agrees to and shall pay Landlord $6,000.00 per month, which included property taxes at: 8550 Beechnut, Houston, Harris County, Texas 77036, or at such other place Landlord
shall designate from time to time in writing as rent for the leased premises.

	
          

	
          

	
	
          

	
4.

	
USE.  Tenant shall use the leased premises for the following purpose and no other: automotive sales and any other lawful purpose.

	
          

	
          

	
	
          

	
5.

	
SECURITY DEPOSIT.   Tenant shall pay to Landlord a security deposit in the sum of $6,000.00 payable on or before the commencement of this lease for Tenant’s faithful performance
hereunder. Refund thereof shall be made upon performance of this lease agreement by Tenant, minus any assessments or damages unless Landlord and Tenant provide otherwise in Special Provisions.

	
          

	
          

	
	
          

	
6.

	
INSURANCE.   Tenant shall pay for fire and extended coverage insurance on the building and other improvements on the leased premises in an amount not less than $150,000.00, which amount
shall be increased yearly in proportion to the increase in market value of the premises. If Landlord provides any insurance herein, Tenant shall pay to Landlord, during the term hereof, the amount of any increase in premiums for the insurance required over and above
such premiums paid during the first year of this lease. Tenant shall provide public liability and property damage insurance for its business operations on the leased premises in the amount of $300,000.00 which policy shall cover the Landlord as well as the Tenant.
Said Insurance policies required to be provided by Tenant herein shall name Landlord as an insured and Southwestern National Bank, 6901 Corporate Drive, Harris County, Texas 77036, by an insurance company approved by Landlord. Tenant shall provide Landlord with
certificates of insurance evidencing the coverage required herein. Tenant shall be solely responsible for fire and casualty insurance on Tenants property on or about the leased premises. If Tenant does not maintain such insurance in full force and effect, Landlord
may notify Tenant of such failure and if Tenant does not deliver to Landlord within 15 days after such notice certification showing all such insurance to be in full force and effect, Landlord may at his option take out the necessary insurance to comply with the
provision hereof and pay the premiums on the items specified in such notice , and a Tenant covenants thereupon on demand to reimburse and pay Landlord any amount so paid or expended in the payment of the insurance premiums required hereby and specified in the notice,
with interest thereon at the rate of ten percent (10%) per annum from the date of such payment by Landlord until repaid by Tenant.

	
          

	
          

	
	
          

	
7.

	
CONDITION.   Tenant has investigated all environmental concerns and agrees to lease the Property “as is” and with all faults, and Tenants represents that Tenant is familiar
with the qualities, characteristics and potentialities of the premises to be leased and affirms that Tenant has not relied on Landlords skill or judgment to deliver such premises suitable for any particular purpose. Except as otherwise expressly provided, LANDLORD
MAKES NO WARRANTY OF MECHANTABILITY OF FITNESS FOR ANY PARTICULAR USE, NOR IS THERE ANY OTHER EXPRESS OR IMPLIED WARRANTY. Landlord expressly disclaims and Tenant

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expressly waives any warranty of habitability, good and workmanlike construction, design or fitness for any particular purpose Landlord expressly discloses, and Tenant expressly waives any implied warranty of suitability for
the intended commercial purpose and use of the leased premises. Landlord or Landlord’s employees, agents and/or contractors shall have the right to enter the Premises at any reasonable time during Tenants normal business hours to examine the environmental
condition of the Premises, and to complete any environmental monitoring or remediation. Landlord shall give Tenant not less than twenty-four (24) hours prior written notice of Landlords intended entry into the premises. Tenant is aware that the leased property had
underground storage tanks that were removed, that there is an Environmental Inspection Report dated March 1, 1999, and that said site was remediated.

	
          

	
          

	
	
          

	
8.

	
MAINTENANCE AND REPAIRS.   Landlord shall keep the foundation, the exterior walls, (except glass: windows; doors; door closure devices; window and door frames, molding and hardware; and
interior painting or other treatment of exterior walls), and the roof of the leased premises in good repair except that the Landlord shall not be required to make any repairs occasioned by the act or negligence of Tenant, its employees, subtenants, licenses, and
concessionaires. Tenant is responsible for the maintenance of the common area and common area equipment. If Landlord is responsible for any such repair and maintenance, Tenant agrees to give Landlord written notice of needed repairs. Landlord shall make such repairs
within ten (10) days. Tenant shall notify Landlord immediately of any emergency repairs.  Tenant shall keep the leased premises in good, clean condition and shall at its sole cost and expense make all needed repairs and replacements, including replacement of
cracked or broken glass, except for repairs and replacements required to be made by Landlord under this section.  If any repairs required to be made by Tenant hereunder are not made within ten (10) days after written notice delivered to Tenant by Landlord,
Landlord may at its option make such repairs without liability to Tenant for any loss or damage which may result by reason of such repairs, and Tenant shall pay to Landlord upon demand as additional rent hereunder the cost of such repairs plus interest.  At the
termination of this lease, Tenant shall deliver the leased premises in good order and condition, normal wear and tear excepted.  Normal wear and tear means deterioration which occurs without negligence, carelessness, accident or abuse.

	
          

	
          

	
	
          

	
9.

	
ALTERATIONS.  All alterations, additions and improvements, except trade fixtures and the alarm system, installed at the expense of Tenant, shall become the property of Landlord and shall
remain upon and be surrendered with the leased premises as a part thereof on the termination of this lease.  Such alterations, additions and improvements may only be made with the prior written consent of Landlord, which such improvements and alterations shall
not commence until Tenant has furnished to Landlord a certificate of insurance showing coverage in an amount satisfactory to Landlord protecting Landlord from liability for injury to any person and damage to any personal property, on or off the leased premises, in
connection with the making of such improvements or alterations.  No cooling tower, equipment, or structure of any kind shall be placed on the roof or elsewhere on the leased premises by Tenant without prior written permission of Landlord.  If such
permission is granted, such work or installation shall be done at Tenant’s expense and in such a manner that the roof shall not be damaged thereby.  If it becomes necessary to remove such cooling tower, equipment or structure at Tenant’s expense and
repair at Tenant’s expense any damage resulting from such removal or reinstallation.  Upon termination of this lease, Tenant shall remove or cause to be removed from the roof any such cooling tower, equipment or structure if directed to do so by
Landlord.  Tenant shall promptly repair at its expense any damage caused by the installation or removal of trade fixtures shall be repaired at Tenant’s expense prior to the expiration of the lease term.  All alterations, improvements, additions, and
repairs made by Tenant shall be made in good and workmanlike manner.

	
          

	
          

	
	
          

	
10.

	
COMPLIANCE WITH LAWS AND REGULATIONS.  Tenant shall, at its own expense, comply with all laws, orders, and requirements of all governmental entities with referenced to the use and occupancy of
the leased premises.  Tenant and Tenant’s agents, employees and invitees shall duly comply with any rules and regulations governing the use of the building or other improvements to the leased premises as required by Landlord.  Landlord may make
reasonable changes in such rules

-2-

	
          

	
          

	
and regulations from time to time as deemed advisable for the safety, care and cleanliness of the leased premises, provided same are in writing and are not conflict with this lease.

	
          

	
          

	
	
          

	
11.

	
ASSIGNMENT AND SUBLETTING.  Tenant shall not assign this lease nor sublet the leased premises or any interest therein without first obtaining the written consent of Landlord.  An
assignment or subletting without the written consent of Landlord shall be void and shall, at the option of Landlord, terminate this lease.

	
          

	
          

	
	
          

	
12.

	
DESTRUCTION.  In the event the leased premises is partially damaged or destroyed or rendered partially unfit for occupancy by fire or other casualty, Tenant shall give immediate notice
Landlord.  Landlord may repair the damage and restore the leased premises in substantially the same condition as immediately prior to the occurrence of the casualty.  Such repairs shall be made at Landlord’s expense unless due to Tenant’s
negligence.  Landlord shall allow Tenant a fair reduction of rent during the time leased premises are partially unfit for occupancy.  If the leased premises are totally destroyed or deemed by the Landlord to be rendered unfit for occupancy to fire or other
casualty, or if Landlord shall decide not to repair or rebuild, this lease shall terminate and the rent shall be paid to the time of such casualty.

	
          

	
          

	
	
          

	
13.

	
TENANT DEFAULT AND REMOVAL OF ABANDONED PROPERTY.  If Tenant abandons the premises or otherwise defaults in the performance of any obligations or covenants herein, Landlord may enforce the
performance of this lease in any manner provided by law.  This lease may be terminated at Landlord’s discretion if such abandonment or default continues for a period of ten (10) days after Landlord notifies Tenant of such abandonment or default and of
Landlord’s intention to declare this lease terminated.  Such notice shall be sent by Landlord to Tenant at Tenant’s last known address by certified mail.  If Tenant has not completely removed or cured default within the 10-day prior, this lease
shall terminate.  Thereafter, Landlord or its agents shall have the right, without further notice or demand, to enter the leased premises and remove all property without being deemed guilty of trespass and without waiving any other remedies for arrears of rent
or breach of covenant.  Upon abandonment or default by the Tenant, the remaining unpaid portion of the rent from paragraph 3 herein, shall become due and payable.  For purposes of this section, Tenant is presumed to have abandoned the premises if goods,
equipment, or other property, in an amount substantial enough to indicate a probable intent to abandon the premises, is being or has been removed from the premises and the removal is not within the normal course of Tenant’s business.  Landlord shall have
the right to store any property of Tenant that remains on premises that is abandoned; and, in addition to Landlord’s other rights, Landlord may dispose of the stored property if Tenant does not claim the property within 60 days after the date the property is
stored, provided Landlord delivers by certified mail to Tenant at Tenant’s last known address a notice stating that Landlord may dispose of Tenant’s property if Tenant does not claim the property within 60 days after the date the property is
stored.

	
          

	
          

	
	
          

	
14.

	
EXCLUSION OF TENANT.  Landlord may not intentionally prevent Tenant from entering the leased premises except by judicial process unless the exclusion results from: (a)  bona fide repairs,
construction, or an emergency; (b) removing the contents of premises abandoned by Tenant; or (c) changing the door locks of Tenant in the event Tenant is delinquent in paying at least part of the rent.  If Landlord or Landlord’s agent changes the door lock
of Tenant, in the event Tenant is delinquent in paying rent, Landlord or Landlord’s agent must place a written notice on Tenant’s front door stating the name and address or telephone number of the individual or company from which the new key may be
obtained.  The new key is required to be provided only during Tenant’s regular business hours.

	
          

	
          

	
	
          

	
15.

	
SUBORDINATION.  Landlord is hereby irrevocably vested with full power and authority to subordinate this lease to any mortgage, deed of trust, or other lien hereafter placed on the demised
premises and Tenant agrees on demand to execute such further instruments subordinating this lease as Landlord may request, provided such subordination shall be on the express condition that this lease shall be recognized by the mortgagee, and the rights of 
Tenant shall remain in full force and

-3-

	
          

	
          

	
full effect during the term of this lease so long as Tenant shall continue to perform all of the covenants and conditions of this lease.

	
          

	
          

	
	
          

	
16.

	
INDEMNITY.  Landlord and its employees and agents shall not be liable to Tenant or to Tenant’s employees, patrons, visitors, invitees, or any other persons for an injury to such persons
or for damage to personal property caused by an act, omission, or neglect of Tenant or Tenant’s agents or of any other tenant of the premises of which the leased premises is a part.  Tenant agrees to indemnify and hold Landlord and its employees and agents
harmless from any and all claims for such injury and damages, whether the injury occurs on or off the leased premises.

	
          

	
          

	
	
          

	
17.

	
SIGNS.  Tenant shall not post or paint any signs at, on or about the leased premises or paint the exterior walls of the building except with the prior written consent of the Landlord. 
Landlord shall have the right to remove any sign or signs in order to maintain the leased premises or to make any repairs or alterations thereto.

	
          

	
          

	
	
          

	
18.

	
TENANT BANKRUPTCY.  If Tenant becomes bankrupt or makes voluntary assignment for the benefit of creditors or if a receiver is appointed for Tenant, Landlord may terminate this lease by giving
five (5) days written notice to Tenant of Landlord’s intention to do so.

	
          

	
          

	
	
          

	
19.

	
CONDEMNATION.  If the whole or any substantial part of the leased premises is taken for any public or quasi-public use under any governmental law, ordinance or regulation or by right of
eminent domain or should be leased premises be sold to a condemning authority under threat of condemnation, this lease shall terminate and the rent shall be abated during the unexpired portion of the lease effective from the date of the physical taking of the leases
premises.

	
          

		
	
          

	
20.

	
OPTION TO EXTEND TERM OF THE LEASE.

	
          

	
          

	
	
          

	
          

	
a.

	
Tenant, if not in default, may give Landlord ninety (90) days notice before June 30, 2006, to extend the term of this lease for an additional two (2) year term at the same rate of $6,000.00 per month.

	
          

	
          

	
          

	
	
          

	
          

	
b.

	
Tenant, if not in default, may give Landlord ninety (90) days notice before June 30, 2008, to extend the term of this lease for an additional two (2) year term at the rate of $6,500.00 per month.

	
          

	
          

	
	
          

	
21.

	
NOTICES.  Notices to Tenant shall be by certified mail or other delivery to the leased premises or to Tenant’s last known address.  Notices to Landlord shall be by certified mail to
the place where rent is payable.

	
          

	
          

	
	
          

	
22.

	
DEFAULT BY LANDLORD.  In the event of breach by Landlord of any covenant, warranty, term or obligation of this lease, then Landlord’s failure to cure same or commence a good faith effort
to cure same within ten (10) days after written notice thereof by Tenant shall be considered a default and shall entitle Tenant either to terminate this lease or cure the default and make the necessary repairs, and any expense incurred by Tenant shall be reimbursed
by the Landlord after reasonable notice of the repairs and expenses incurred.

	
          

	
          

	
	
          

	
23.

	
SIGNS.  During the last ten (10) days of this lease, a “For Sale” sign and/or “For Lease” sign may be displayed on the leased premises and the leased premises may be
shown at reasonable times to prospective purchasers or tenants.

	
          

	
          

	
	
          

	
24.

	
RIGHT OF ENTRY.  Landlord shall have the right during normal business hours to enter the demised premises a) to inspect the general condition and state of repair thereof, b) to make repairs
required or permitted under this lease, or c) for any other reasonable purpose.

-4-

	
          

	
25.

	
WAIVER OF BREACH.  The waiver by Landlord of any breach of any provision of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach of the same or a different
provision of this lease.

	
          

	
          

	
	
          

	
26.

	
TIME OF ESSENCE.  Time is expressly declared to be of the essence in this lease.

	
          

		
	
          

	
27.

	
BINDING OF HEIRS AND ASSIGNS.  Subject to the provisions of this lease pertaining to assignment of the Tenant’s interest, all provisions of this lease shall extend to and bind, or inure
to the benefit not only of the parties to this lease but to each and every one of the heirs, executors, representatives, successors, and assigns of Landlord of Tenant.

	
          

	
          

	
	
          

	
28.

	
RIGHTS AND REMEDIES CUMULATIVE.  The rights and remedies by this lease agreement are cumulative and the use of any one right or remedy   either party shall not preclude or waive its
right to use any or all other remedies.  Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance, or otherwise.

	
          

	
          

	
	
          

	
29.

	
TEXAS LAW TO APPLY.  This agreement shall be construed under and in accordance with the laws of the State of Texas.

	
          

	
          

	
	
          

	
30.

	
LEGAL CONSTRUCTION.  In case any one or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such
invalidity, illegality, or unenforceability shall not affect any other provision hereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.

	
          

	
          

	
	
          

	
31.

	
PRIOR AGREEMENTS SUPERSEDED.  This agreement constitutes the sole and only agreement of the parties to this lease and supersedes any prior understandings or written or oral agreements between
the parties respecting the subject matter of this lease.

	
          

	
          

	
	
          

	
32.

	
AMENDMENT.  No amendment, modification, or alteration of the terms hereof shall be binding unless it is in writing, dated subsequent to the date hereof, and duly executed by the
parties.

	
          

	
          

	
	
          

	
33.

	
ATTORNEY’S FEES.  Any signatory to this lease agreement who is the prevailing party in any legal proceeding against any other signatory brought under or with relation to this lease
agreement or this transaction shall be additionally entitled to recover court costs, reasonable attorney fees, and all other out-of-pocket costs of litigation, including deposition, travel and witness costs, from the nonprevailing party.

	
          

	
          

	
	
          

	
34.

	
SPECIAL PROVISIONS.  (This section to include additional factual data not included above.)  See Special Provision Addendum.

	
          

	
	
          

	
THIS IS A LEGAL DOCUMENT.  READ IT CAREFULLY.  IF YOU DO NOT UNDERSTAND THE EFFECT OF ANY PART OF THIS AGREEMENT, SEEK COMPETENT LEGAL ADVICE.

-5-

EXECUTED this ________ day of ____________, 2005.

Tenant

AUTO UNDERWRITERS OF AMERICA, INC.

By:                          ____________________________________________

Printed Name:       ____________________________________________

Title:                       ____________________________________________

Landlord

TRANSWORLD CORPORATION

By:                          ___________________________________________

Printed Name:       ___________________________________________

Title:                       ___________________________________________

-6-

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