Document:

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                                                                  Exhibit 10.64

         THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED WITH ANY STATE
SECURITIES OR FEDERAL REGULATORY AGENCY, AND NO STATE OR FEDERAL REGULATORY
AGENCY HAS PASSED UPON OR ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY
OR ADEQUACY OF ANY DISCLOSURE MADE IN CONNECTION THEREWITH. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.

         THE SECURITIES OFFERED HEREBY MAY NOT BE RESOLD WITHOUT REGISTRATION
UNDER APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
SATISFACTORY TO GENIUS PRODUCTS, INC. IS OBTAINED TO THE EFFECT THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER SUCH LAWS.

         THE EXECUTIVE ACKNOWLEDGES THAT THE COMMON STOCK HAS NOT BEEN
REGISTERED UNDER THE FEDERAL SECURITIES LAWS, THE CALIFORNIA CORPORATE
SECURITIES LAW OR THE SECURITIES LAWS OF NEVADA OR ANY OTHER STATE. THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND THEY MAY NOT BE OFFERED, SOLD
OR TRANSFERRED UNLESS AND UNTIL SUCH SECURITIES ARE REGISTERED UNDER APPLICABLE
FEDERAL AND STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE CORPORATION IS OBTAINED TO THE EFFECT THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER SUCH LAWS.

                              GENIUS PRODUCTS, INC.
                        EXECUTIVE STOCK PAYMENT AGREEMENT

         THIS EXECUTIVE STOCK PAYMENT AGREEMENT (this "Agreement") is entered
into as of the 3rd day of January, 2002, by and between GENIUS PRODUCTS, INC., a
Nevada corporation (the "Company"), and FULL NAME, an individual ("Executive").

         WHEREAS, the Company has been experiencing significant cash flow
shortages;

         WHEREAS, Executive, [a director and] [a/an TITLE] of the Company
offered to assist in the Company's cash flow shortage by accepting a portion of
Executive's salary for the years 2001 and 2002 in the form of shares of the
Company's Common Stock, par value $.001 per share (the "Common Stock");

         WHEREAS, the Company owes Executive $15,000 in salary from 2001, and
Executive and the Company determined that Executive would accept such payment of
such $15,000 of Executive's salary for the year 2001 ("2001 SHORT NAME Salary
Deduction") in the form of Common Stock;

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         WHEREAS, Executive and the Company determined that Executive would also
accept a $30,000.00 reduction of Executive's salary for the year 2002 ("2002
SHORT NAME Salary Deduction") in exchange for a signing bonus from the Company
in the form of Common Stock;

         WHEREAS, Executive and the Company agreed that in accordance with such
plan, $30,000.00 would be deducted pro rata from Executive's salary for the year
2002; and

         WHEREAS, the Board and Executive agreed that the number of shares of
Common Stock to be issued to Executive should be determined by dividing
$45,000.00 (being the sum of $15,000.00 and $30,000.00) by $0.63 per share of
Common Stock, which would result in an issuance by the Company of 71,429 shares
of Common Stock to Executive;

         NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto, intending to be legally bound, do hereby
agree as follows

1. ISSUANCE. Executive and the Company agree that the Company shall issue to
Executive 71,429 shares of Common Stock, with an aggregate value of $45,000
(i.e., $0.63 per share) as a signing bonus relating to Executive's employment
agreement of even date herewith and Executive's agreement to accept such shares
in lieu of $30,000 of Executive's salary compensation ordinarily payable in
connection therewith.

2. REPRESENTATIONS AND WARRANTIES OF EXECUTIVE. Executive hereby acknowledges,
represents and warrants to the Company the following:

         2.1 RISK OF INVESTMENT. The purchase of Common Stock involves a high
degree of risk in that (i) the Company will require substantial funds in
addition to the proceeds of this sale; (ii) an investment in the Company is
highly speculative and only investors who can afford the loss of their entire
investment should consider investing in the Common Stock; (iii) Executive may
not be able to liquidate Executive's investment; and (iv) while the Common Stock
is currently traded on the OTC Bulletin Board, transferability of the Common
Stock is limited.

         2.2 RISK OF LOSS. Executive is able to bear the economic risk of the
investment in the Common Stock and can afford the complete loss of such
investment. Executive has adequate means of providing for Executive's current
needs and possible personal contingencies, and has no present need for liquidity
of the investment in the Common Stock.

         2.3 RESIDENCE. Executive is a resident of the State of California.

         2.4 TAXES. No representation has been made by the Company to Executive
regarding any federal, state or local tax consequences of investing in the
Company or receipt of the Common Stock issued to Executive hereunder. Executive
understands that it is the sole responsibility of Executive to obtain tax advice
pertaining to Executive's particular situation.

         2.5 LEGEND. Executive understands and agrees that there will be placed
on the certificate or certificates representing the Common Stock issuable under
this Agreement, and any substitutions therefor and any certificates for
additional shares which might be distributed with respect to such Common Stock,
a legend stating in substance:

                                       2

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                  "This security has not been registered or qualified under the
federal securities laws or the securities or blue sky laws of California or any
other state and may not be offered and sold unless registered and/or qualified
pursuant to the relevant provisions of federal, state securities or blue sky
laws or an exemption from such registration or qualification is applicable.
Therefore, no sale or transfer of this security shall be made, no attempted sale
or transfer shall be valid, and the issuer shall not be required to give any
effect to any such transaction unless (a) such transaction shall have been duly
registered under federal securities laws and qualified or approved under
appropriate state or blue sky laws, or (b) the issuer shall have first received
an opinion of counsel satisfactory to it that such registration, qualification
or approval is not required."

         2.6 SOPHISTICATION. Executive has prior investment experience regarding
investment in unregistered securities, or has employed the services of an
investment advisor, attorney and/or accountant to read all of the documents
furnished or made available by the Company to the Executive and to evaluate the
merits and risks of such an investment on the Executive's behalf. Executive
recognizes the highly speculative nature of this investment.

         2.7 INFORMATION. Executive has had a full opportunity to ask questions
of and receive satisfactory answers from the Company or any person or persons
acting on its behalf, concerning the terms and conditions of this investment,
and all such questions have been answered to the full satisfaction of Executive.
Executive acknowledges that Executive is the [Chairman of the Board and Chief
Executive Officer/TITLE] for the Company and, as such, Executive has full
knowledge about the operations, condition and prospects for the Company.

         2.8 PUBLIC SOLICITATION. Executive has received no public solicitation
or advertisement concerning an offer to sell or a solicitation to buy the shares
of Common Stock issued or to be issued under this Agreement.

         2.9 INVESTMENT INTENT. Executive understands that this offering of the
Common Stock has not been reviewed by the California Department of Corporations
("Department") because this sale is intended to be a nonpublic offering pursuant
to Section 25102(f) of the California Corporations Code (the "Code"). The Common
Stock is being purchased for Executive's own account, for investment and not for
distribution or resale to others. Executive will not sell or otherwise transfer
such securities unless they are registered under the Code or unless an exemption
from such registration is available. Executive realizes that, in the view of the
Department, a purchase with an intent to resell would represent a purchase with
an intent inconsistent with Executive's representation to the Company, and the
Department might regard such a sale or disposition as a deferred sale to which
the foregoing exemptions are not available.

         2.10 RESTRICTIONS ON TRANSFER. The Company may, if it desires, permit
the transfer of the Common Stock acquired hereunder out of Executive's name only
when Executive's request for transfer is accompanied by an opinion of counsel
reasonably satisfactory to the Company that neither the sale nor the proposed
transfer results in a violation of the federal securities laws or any applicable
state securities or blue sky laws, including, but not limited to the Code
(collectively "Securities Laws").

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         2.11 RELIANCE. No representations or warranties have been made to
Executive by the Company or any agent, employee or affiliate of the Company,
and, in entering into this transaction, Executive is not relying on any
information, other than the results of independent investigation by the
Executive.

         2.12 SURVIVAL OF REPRESENTATION AND WARRANTIES. Executive understands
the meaning and legal consequences of the foregoing representations and
warranties, which are true and correct as of the date of this Agreement. Each
representation and warranty will survive such purchase.

3. INDEMNIFICATION. Executive agrees to hold the Company and its directors,
officers and controlling persons and their respective heirs, representatives,
successors and assigns harmless and to indemnify them against all liabilities,
costs and expenses incurred by them as a result of any misrepresentation made by
the undersigned contained herein or any sale or distribution by Executive in
violation of any Securities Laws.

4. REPRESENTATIONS BY THE COMPANY. The Company represents and warrants to
Executive that the Common Stock offered herein has been duly and validly
authorized and when issued in accordance with the terms of the Agreement will be
validly issued, fully paid and nonassessable.

5. REGISTRATION ON FORM S-8. Notwithstanding anything to the contrary contained
herein, the Company intends to register the Common Stock offered herein with the
federal Securities and Exchange Commission prior to its issuance to Executive on
a Form S-8. If such registration is accomplished, the legend on the certificates
representing such Common Stock shall be modified appropriately.

6. MISCELLANEOUS.

         6.1 NOTICES. Any notice or other communication given hereunder shall be
deemed sufficient if in writing and sent by registered or certified mail, return
receipt requested, addressed to the Company, at 11250 El Camino Real, Suite 100,
San Diego, California 92130, Attention: President and to [FULL NAME] care of the
same address. Notices will be deemed to have been given on the date of mailing,
except notices of change of address, which shall be deemed to have been given
when received.

         6.2 AMENDMENT. This Agreement shall not be changed, modified or amended
except by a writing signed by the parties to be charged, and this Agreement may
not be discharged except by performance in accordance with its terms or by a
writing signed by the party to be charged.

         6.3 SUCCESSORS. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and to their respective heirs, legal
representatives, successors and proper assigns. This Agreement sets forth the
entire agreement and understanding between the parties as to the subject matter
thereof and merges and supersedes all prior discussions, agreements and
understandings of any and every nature among them.

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         6.4 GOVERNING LAW; VENUE. Executive expressly agrees that all the terms
and provisions hereof will be construed in accordance with, and governed by, the
laws of the State of California. Executive hereby agrees that any dispute which
may arise between Executive and the Company arising out of, or in connection
with, this Agreement will be adjudicated before a court located in San Diego,
California, and Executive hereby submits to the exclusive jurisdiction of the
courts of the State of California, located in San Diego, California, and of the
federal courts located in San Diego, California, with respect to any action or
legal proceeding commenced by any party, and irrevocably waives any objection
Executive now has, or hereafter may have, respecting the venue of any such
action or proceeding brought in such a court, or respecting the fact that such
court is an inconvenient forum, relating to or arising out of this Agreement, or
any acts or omissions relating to the sale of the securities hereunder, and
consents to the service of process in any such action or legal proceeding by
means of registered or certified mail, return receipt requested, in care of the
address set forth on the signature page of this Agreement or such other address
as the undersigned will furnish in writing to the Company.

         6.5 COUNTERPARTS; BINDING OBLIGATION. This Agreement may be executed by
facsimile transmission, and in one or more counterparts, each of which shall be
deemed an original, but all of which taken together shall constitute one and the
same instrument. This Agreement shall become binding and effective when one or
more counterparts, taken together, bear the signatures of all parties identified
as signatories below.

         6.6 SEVERABILITY. The holding of any provision of this Agreement to be
invalid or unenforceable by a court of competent jurisdiction will not affect
any other provision of this Agreement, which will remain in full force and
effect.

         6.7 WAIVER. It is agreed that a waiver by any party of a breach of any
provision of this Agreement will not operate, or be construed, as a waiver of
any subsequent breach by that same party.

         6.8 ADDITIONAL DOCUMENTS. Executive agrees to execute and deliver all
such further documents, agreements and instruments and take such other and
further action as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.

[The remainder of this page is intentionally left blank. The next page is the
signature page.]

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                                 SIGNATURE PAGE
                                 --------------

         The undersigned Executive, desiring to acquire shares of Common Stock
pursuant to this Agreement by executing this signature page hereby agrees to be
bound by all of the terms of this Agreement, and further affirms and agrees to
all terms, conditions, representations and warranties of this Agreement.

         DATED as of this 3rd day of January, 2002.

EXECUTIVE:

_______________________________________________
 FULL NAME        , an individual

COMPANY:

Genius Products, Inc., a Nevada corporation

By:____________________________________________
       [____________], Authorized Officer

By:____________________________________________
       [____________], Authorized Officer

                                       6<PAGE>

                                                                  Exhibit 10.65

                                    SUBLEASE
                                                                          #27389
                                                                           COPY
1. PARTIES

This Agreement ("Sublease") dated 5-1-02   for reference purposes only, is
                                  -------
entered into by and between Meader Family Limited Trust ("Lessor") and GENIUS
PRODUCTS, INC. ("Lessee").

2. BACKGROUND

2.1    Eugene J. and Elaine H. Meader ("Lessor") Partners, Meader Family Limited
       Trust, entered into a lease dated June 1. ("Lease") for the rental of
       certain real estate with improvements situated at R.R. 2, West Highway
       83, City of Atlantic, County of Cass, State of Iowa ("Premises") for a
       term expiring on May 31, 2004.

2.2    "Lessor" now desires to lease a portion of the Premises "as is" to lessee
       pursuant and subject to the provisions, conditions and covenants set
       forth herein.

3. SUBLEASED PREMISES

3.1    Lessor agrees to sublease to lessee and lessee agrees to rent from lessor
       for the Term of this lease pursuant and subject to all of the provisions,
       conditions and covenants hereinafter set forth, a portion of the
       Premises, "as is", consisting of approximately 6,000 sq ft and one office
                                                      --------------------------

3.2    All of the leasehold interests conveyed to lessee by this lease and
       described in this Article are hereinafter referred to as the "Subleased
       Premises."

4. PRIORITY OF LEASE

4.1    Notwithstanding anything to the contrary contained in this Sublease,
       lessor and lessee agree that all of the provisions, conditions and
       covenants of the lease shall take precedence and supercede any
       provisions, conditions, and covenants of this lease which are, or may be,
       in conflict therewith insofar as the interest of Lessor may be involved
       or affected; however, the financial liabilities of lessee hereunder shall
       be limited to those commitments specifically imposed and/or assumed under
       this lease and any additional financial obligations required of
       ("Tenant") under the Lease shall be the sole responsibility of lessor to
       timely pay and/or satisfy.

4.2    Lessee also agrees to occupy the leased Premises and to conduct its
       operations in, on, or about same at all times during the Term in
       compliance with the provisions, conditions and restrictions contained in
       the Lease and this Sublease.

4.3    In addition to those rights, privileges, and powers of lessor set forth
       herein, lessor shall have the same rights, powers, and privileges of
       "Landlord" as such are set forth in the Lease with respect to lessee and
       the leased Premises as though lessor as "Landlord" had originally entered
       into and executed the Lease with lessee as "Tenant".

4.4    Under no circumstances shall lessee have any rights with respect to the
       leased Premises greater than the rights of lessor as "Tenant" under the
       Lease nor shall lessor be obligated to lessee for any matters whatsoever
       for which lessor does not have at least coextensive rights as "Tenant"
       against "Landlord" under the Lease.

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4.5    Nothing contained in this lease shall be construed to create a privity of
       estate or a contract between lessee and Lessor.

4.6    The refusal of Lessor to consent to or approve of any matter whenever
       such consent or approval is required under this lease shall be deemed
       reasonable if Lessor has refused to give its consent or approval of the
       matter as required under the Lease.

4.7    Nothing.contained in this lease shall be construed to commit or place any
       obligation on Lessor to take any action to obtain the approval of Lessor
       whenever such may be required under the Lease.

5. USE

5.1    The leased Premises shall be used and occupied for the storage, and
       shipping of company products.

5.2    Lessee agrees to conduct its business in, on, and about the leased
       Premises in compliance with: (i) all applicable covenants, conditions,
       and restrictions of record, (ii) pursuant to all applicable laws,
       ordinances, codes, rules and regulations of federal, state, and local
       governmental agencies, including, but not limited to, those pertaining to
       zoning, occupational, health, environmental, disability, safety and fire,
       (iii) in accordance with the direction of any public officer(s) pursuant
       to law or any other regulatory body having jurisdiction over the Leased
       Premises or the business of lessee; (iv) in conformance with all
       applicable insurance regulations, rules, orders, and requirements; and
       (v) in compliance with the provisions, covenants, and conditions of the
       Lease.

5.3    Lessee specifically understands that no statement or representation has
       been made by Lessor as to the condition or permitted use of the Leased
       Premises, zoning requirements, set back restrictions, or encumbrances
       affecting same; and, that being fully aware of such, lessee agrees to
       occupy the Leased Premises on an "as is", "whereis", "all faults" bases,
       subject to applicable easements, conditions, restrictions, rules, codes,
       and regulations, assuming full responsibility for securing all necessary
       permits to legally use same for the purpose stated herein.

6. TERM

6.1    This Lease shall commence on June 1, 2002 and expire on May 31, 2004
       ("Term"); thereafter, the Term shall automatically be extended from month
       to month upon the same provisions, conditions, covenants and rental until
       the same is terminated at the end of any given month by either party
       hereto providing the other with at least thirty (30) days prior written
       notice thereof.

6.2    "Term" as used herein shall be construed to be any period of time during
       which the leasehold estate created by this lease is in affect including
       in addition to the initial Term, any renewal and/or extension thereof by
       means of any option(s), holdover(s) with the consent of Lessor or other
       provisions hereinafter set forth.

6.3    This lease shall terminate simultaneously with the termination for any
       reason whatsoever of the Lease notwithstanding anything to the contrary
       contained herein.

6.4    The termination of this Lease pursuant to this Section 6 in advance of
       the date set for the expiration of the Term shall not prevent "Lessor or"
       Lessee from enforcing those rights and interests which may have
       previously arisen and/or accrued hereunder to the extent consistent with
       the provisions, conditions and covenants of this Sublease.

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6.5    Upon the termination of this lease in accordance with this Section, all
       rents and any other costs paid by to lessor in advance thereof shall
       promptly be refunded to lessee by lessor.

7. RENT

7.1    Lessee shall pay to Lessor as rent for the Leased Premises fixed monthly
       installments -- each installment to be paid in advance without prior
       notice, demand, abatement, deduction or set off on or before the first
       business day of each calendar month during the Term.

7.2    All payments to lessor accruing hereunder shall be made payable to Meader
       Limited Family Trust and shall be forwarded to the address hereinafter
       set forth for lessor or at such other place as lessor may designate from
       time to time by giving prior written notice to lessee.

7.3    If the Term should commence on other than the first,day of a month or
       terminate an other than the last day of a month, then the fixed rental
       installment for that the Term shall be apportioned on a thirty (30) day
       calendar month per diem basis.

7.4    Lessee agrees that certain costs and/or expenses which are the obligation
       of lessee hereunder and which accrue during the Term, but cannot be
       determined until after the end thereof shall survive the expiration of
       the Term of this lease.

7.5    Lessee recognizes that its failure to timely pay any monies and/or
       charges when due hereunder may cause lessor to incur unanticipated costs
       such as processing, accounting, and late charges that may be imposed on
       lessor under the Lease, its mortgage or deed of trust, the exact amount
       of which is impractical and extremely difficult to ascertain-, therefore,
       if "lessor" does not receive any payment of monies and/or charges within
       five (5) days after same becomes due lessee agrees to pay lessor a late
       charge equal to five percent (5%) of the overdue amount. Such late charge
       representing a fair and reasonable estimate of the costs lessor will
       incur by reason of the late payment.

8. SECURITY DEPOSIT

8.1.1       0
       ------------

9.  UTILITIES

9.1    Lessor shall pay for all utilities (except telephone) consumed on the
       leased Premises during the Term. Exception to this described as follows
       NONE
       -----

9.2    Lessee shall install and pay for its own telephone system to service the
       leased Premises.

10. TAXES

10.1   Lessor shall be responsible for the payment of all real estate taxes and
       general and/or special assessments imposed, levied, or charged against
       the leased Premises during the lease Term and any extensions thereof.

10.2   Lessee shall pay for all taxes levied or assessed against any equipment,
       inventory, or other personal properly used by the lessee, as well as for
       all local business taxes, licenses fees, and other charges or assessments
       related to or attributable to the use and occupancy of the leased
       Premises by the lessee.

                                       3

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11. INSURANCE -- INDEMNIFICATION

11.1.1     Lessor shall purchase and maintain casualty insurance upon all of the
           improvements which form a part of the leased Premises, exclusive of
           trade fixtures and other equipment of lessee and any improvements or
           alterations made by lessee.

11.1.2     Lessee agrees to comply with all insurance regulations in order that
           lessor may obtain the lowest risk rating available and consistent
           with the use set forth herein for the leased Premises.

11.1.3     If the premiums presently payable by lessor for said insurance
           coverage should be increased due to the use of the leased Promises,
           as a result of any act or omission of lessee, or for any other reason
           attributable to the occupancy of lessee, then lessee shall promptly
           reimburse lessor for the amount of the increase upon written notice
           thereof.

11.2.1     Lessee agrees to, pay, protect, defend, indemnify and hold Lessor and
           lessor harmless and free from and against any and all costs,
           liabilities, penalties, fines, losses, damages, and expenses
           (including, by way of illustration rather than limitation, attorneys
           fees, legal expenses, and court costs) arising from any claim,
           demand, judgment, action, or other cause or causes of any kind,
           nature, or manner whatsoever attributable to or connected with (i)
           the use or occupancy of lessee of the leased Premises prior to
           satisfaction of all of the conditions precedent set forth in Article
           31 hereof, (ii) the failure of lessee to perform any provision,
           condition, covenant, or agreement pursuant to the Lease or this lease
           or (iii) any negligence or activity conducted, permitted, or suffered
           by lessee, its employees, agents, contractors, subcontractors,
           guests, or visitors in, on, about, or related to the leased Premises
           during the Term, unless in any instance such is attributable to the
           sole negligence of lessor, its employees, agents, guests or visitors.

11.2.2     Lessee shall secure broad form comprehensive general liability
           insurance including contractual liability, naming Lessor and lessor
           as additional insureds, in an amount of not less than $1,000,000.00
           combined limits for any injuries, deaths, or property damage
           sustained as a result of any one accident or occurrence arising from
           their or their respective employees, agents, guests, invitees,
           contractors, or subcontractors activities in, on, or about the
           Premises.

11.3.1     All insurance protection to be provided by lessee in compliance with
           this Article shall meet the following requirements:

11.3.2     Coverage shall be provided at all times during the Term under
           standard comprehensive form policies issued by insurers of recognized
           responsibility authorized to do business in the State or Commonwealth
           in which the leased Premises are situated.

11.3.3     Each policy shall be issued and/or carried in the name of Lessor, and
           lessee as their interest may appear.

11.3.4     No policy shall be cancelable or be subject to modification except
           upon ten (10) days prior written notice to lessor and, if for any
           reason whatsoever any such policy is cancelled or modified to the
           detriment of lessor, then lessor may obtain such coverage as is
           required to carry hereunder and charge lessee for the cost thereof.

11.3.5     Lessee shall furnish lessor with certificates evidencing the
           existence of all insurance coverages required under this Article.

                                       4

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12. REPAIRS/MAINTENANCE

12.1       Lessor agrees to deliver possession of the leased Premises to lessee
           on the date provided for herein, turning over the same in accordance
           with the provisions of this but otherwise in "as is" order and
           condition.

12.2.1     Lessee agrees to reimburse lessor within thirty (30) days after
           receipt of an invoice from lessor (substantiated by appropriate
           copies of work orders and statements of the involved contractors) for
           all costs incurred for said repairs, replacements, and maintenance
           performed on the Premises by lessor to the extent that such costs
           were not insured or under warranty whenever the condition was a
           consequence of the willful misconduct or negligence of lessee, its
           agents, employees, or invitees.

12.2.3     Lessee also agrees not to cause or allow any waste or damage to be
           committed upon the leased Premises, to remove all trash therefrom,
           and to keep same free of obstructions, debris, ice and snow.

13. ALTERATIONS/IMPROVEMENTS

13.1       Any improvements to be made by lessee to the leased Premises shall be
           at its expense pursuant to and in compliance with the Lease, but
           subject to the additional prior written consent of lessor, which
           shall not be unreasonably withheld.

13.2.1     Upon the expiration of this lease without default by lessee, lessee
           shall remove all of its personal property and equipment from the
           leased Premises and repair any damage, injury or defacement to the
           leased Premises occasioned thereby, however, all permanent
           improvements made to the leased Premises by or for lessee, such as
           lighting, partitions, or modifications of heating and air
           conditioning systems, shall be deemed a part thereof and shall be
           surrendered therewith by lessee except for those which Lessor shall
           require lessee to remove by giving prior written notice thereof,
           lessee shall permit Lessor agents, or employees to enter the leased
           Premises at all reasonable times in order to inspect same or to make
           such repairs, additions and alterations thereto as may be necessary
           for the safety, preservation, or improvement thereof or as such may
           be required in order to comply with the provisions of the Lease.

13.2.2     Lessor may also show the Leased Premises to prospective tenants or
           purchasers at reasonable hours.

13.3       Lessee agrees not to install any signs on the Leased Premises without
           the prior consent of lessor.

14. SUBLETTING/ASSIGNING

14.1       Lessee shall not voluntarily or by operation of law assign, sublet,
           license, transfer, mortgage or otherwise encumber all or any part of
           the leased Premises and/or this lease to a thirty party.

15. DESTRUCTION

15.1       Lessee shall give lessor prompt written notice of any damage to the
           Leased Premises caused by any means whatsoever.

15.2       In the event that all or any portion of the leased Premises are taken
           by condemnation or damaged by the elements, fire, or any other
           casualty, then lessor or lessee may terminate this lease by giving
           the other prior reasonable written notice thereof, but until such
           notice is given, all of the provisions, conditions and covenants of
           this lease shall continue to be of full force and effect.

                                       5

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16. DEFAULT - REMEDIES OF LESSOR

16.1.1     The occurrence of any of the following circumstances shall constitute
           a material default and breach of this lease by lessee;

16.1.la    Failure to pay any rental installments or other sums of money
           required of lessee as and when due hereunder;

16.1.lb    Failure to perform or observe any provision, condition or covenant of
           lessee (other than the payment of money) asset forth in the Lease
           and/or this lease for a period of ten (10) days following receipt of
           written notice thereof setting forth the factual circumstances of the
           alleged default; provided, however, that if the nature of the
           particular default is such that it cannot be reasonably cured within
           the said period, then, only upon failure of lessee to have commenced
           its cure within the said period and to thereafter continue in a
           commercially diligent manner towards the correction thereof;

16.1.lc    Any general assignment of the assets of lessee for the benefit of
           Creditors,

16.1.ld    The filing by or against lessee of a petition to be adjudged a
           bankrupt;

16.1.1e    The filing by lessee of a petition for reorganization, arrangement,
           or other relief under any law relating to bankruptcy or the taking
           advantage of any insolvency law; or

16.1.lf    Appointment of a receiver or trustee to take possession of
           substantially all of the assets of lessee situated on the leased
           Premises.

16.2.1     Upon the occurrence of any of the circumstances of default as set
           forth in this Article and for so long as the same shall continue to
           exist, lessor may hold and/or declare lessee in breach of this lease
           by giving written notice thereof, whereupon, lessor shall have the
           option to pursue any one or more of the remedies hereinafter set
           forth in addition and without prejudice to those rights of recovery
           which may be available under the Lease or through other actions or
           procedures at law or in equity:

16.2.1a    Terminate this lease at any time; or

16.2.1b    Perform the obligations of Lessee and treat all sums and costs
           incurred as a result thereof, together with accrued interest thereon
           at the maximum rate permitted by law, as additional rent hereunder.

16.2.lc    The liability and/or responsibility of, lessee for the payment of
           rent and the performance of and compliance with other provisions,
           conditions and covenants contained in this lease shall not be waived,
           released, discharged, or terminated by service of any notice or
           demand upon lessee, the institution of legal proceedings, or any
           other legal act by lessor resulting in the termination of the right
           of possession of lessee to the leased Premises unless specifically
           stipulated in writing to the contrary by lessor or decreed by a court
           of competent jurisdiction.

17. LEGAL FEES AND EXPENSES

17.1       If it shall be necessary for either party hereto to hire and/or
           obtain legal counsel, pursue any legal remedy, or incur any other
           expense in order to enforce the other to comply with and/or perform
           any of the provisions, conditions and covenants of this lease, then
           the prevailing party shall be reimbursed by the other for the entire
           reasonable and customary cost thereof, such obligation being deemed
           to have accrued on the date of the commencement of any action and to
           be enforceable whether or not the action is prosecuted to judgement.

                                       6

<PAGE>

18. NOTICES

18.1.1     Lessee agrees to immediately forward to lessor copies of any and all
           notices received from Lessor with respect to the leased Premises or
           this lease; furthermore, copies of any legal documents, claims or
           notices of intention to institute legal proceedings by any person,
           firm or corporation which may involve the leased Premises or concern
           any incident that occurred thereon shall be forwarded promptly to
           Lessor.

18.1.2     Lessor agrees to immediately forward to lessee copies of any and all
           notices received from Lessor or third parties with respect to the
           leased Premises or this lease.

18.1.3     Lessor agrees to send lessee a copy of any notice of default given to
           lessor under the Lease.

18.2.1     All notices, demands, or communications required to be given under
           this lease shall be in writing and served by one of the following
           methods: (i) personal delivery; (ii) transmitting a facsimile to the
           number hereinafter listed; (iii) delivery by nationally recognized
           overnight courier which routinely issues dated delivery receipts; or
           (iv) delivery by the United States Postal Service registered or
           certified mail with return receipt requested and postage prepaid, and
           such shall conclusively be deemed dated, given, and/or received as of
           the (i) date of the receipt acknowledging personal delivery (ii) date
           that the facsimile is acknowledged received by return facsimile of
           the cover page of the incoming facsimile signed by the addresses;
           (iii) date of receipt or the date of first attempted delivery as
           noted by the overnight courier, or (iv) date of receipt or the date
           of first attempted delivery as noted by the United States Postal
           Service on the return receipt card.

18.2.2     Each notice demand, or communication shall be sent simultaneously to
           the respective lessor and lessee.

ACCEPTED BY:                                         Lessee:

Meader Family Limited Trust                          /S/ KLAUS MOELLER
Lessor                                               ---------------------------

  /S/ EUGENE J. MEADER                                          CEO
-------------------------------                      ---------------------------
         Partner

  /S/ ELAINE MEADER
-------------------------------                      ---------------------------
         Partner

Date  5-1-02                                         Date   5-20-02
-------------------------------                      ---------------------------

                                       7

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