Document:

EXHIBIT 10.2

                          REGISTRATION RIGHTS AGREEMENT

     REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of June 9, 2006,
by  and  among  Sorell  Inc., a Nevada corporation, with headquarters located at
Buk-ri  35,  Nama-Myun,  Yongin  City,  South  Korea  (the  "COMPANY"),  and the
undersigned  buyers  (each,  a  "BUYER",  and  collectively,  the  "BUYERS").

WHEREAS:

     A.     In  connection  with  the Securities Purchase Agreement by and among
the  parties hereto of even date herewith (the "SECURITIES PURCHASE AGREEMENT"),
the  Company  has agreed, upon the terms and subject to the conditions set forth
in  the  Securities  Purchase  Agreement, to issue and sell to each Buyer (i) 8%
Senior  Convertible  Notes  of the Company (the "NOTES") which will, among other
things,  be  convertible  into  shares  of the Company's common stock, par value
$0.001  per  share (the "COMMON STOCK") (as converted, the "CONVERSION SHARES"),
in  accordance  with  the terms of the Notes, and (ii) warrants (the "WARRANTS")
which  will  be  exercisable  to  purchase  shares of Common Stock (as exercised
collectively,  the  "WARRANT  SHARES").

     B.     The Notes bear interest, which at the option of the Company, subject
to  certain  conditions,  may  be  paid in shares of Common Stock (the "INTEREST
SHARES").

     C.     To  induce the Buyers to execute and deliver the Securities Purchase
Agreement,  the  Company has agreed to provide certain registration rights under
the  Securities  Act  of  1933,  as  amended,  and  the  rules  and  regulations
thereunder, or any similar successor statute (collectively, the "1933 ACT"), and
applicable  state  securities  laws.

NOW,  THEREFORE,  in  consideration  of  the  premises  and the mutual covenants
contained  herein  and  other  good  and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Company and each of the Buyers
hereby  agree  as  follows:

1.     Definitions.  Capitalized  terms  used  herein  and not otherwise defined
herein  shall  have the respective meanings set forth in the Securities Purchase
Agreement.  As  used  in  this  Agreement,  the  following  terms shall have the
following  meanings:

     a.     "BUSINESS  DAY"  means  any  day  other than Saturday, Sunday or any
other  day  on  which commercial banks in The City of New York are authorized or
required  by  law  to  remain  closed.

     b.     "CLOSING  DATE"  shall  have the meaning set forth in the Securities
Purchase  Agreement.

     c.     "EFFECTIVE  DATE" means the date that the Registration Statement has
been  declared  effective  by  the  SEC.

                                        1
<PAGE>
     d.     "EFFECTIVENESS  DEADLINE" means the date which is 120 days after the
Closing  Date  if  the  Registration Statement is not reviewed by the SEC or 150
days  after  the  Closing  Date if the Registration Statement is reviewed by the
SEC.

     e.     "FILING  DEADLINE"  means  30  days  after  the  Closing  Date.

     f.     "INVESTOR"  means a Buyer or any transferee or assignee of the Notes
or  Warrants,  as  applicable,  to  whom  a  Buyer assigns its rights under this
Agreement  and who agrees to become bound by the provisions of this Agreement in
accordance  with  Section  9  and  any  transferee or assignee thereof to whom a
transferee  or  assignee  of  the  Notes or Warrants, as applicable, assigns its
rights  under this Agreement and who agrees to become bound by the provisions of
this  Agreement in accordance with Section 9 and, in each case, is identified in
the  register  of  the  Company.

     g.     "PERSON"  means  an  individual,  a  limited  liability  company,  a
partnership,  a  joint  venture,  a  corporation,  a  trust,  an  unincorporated
organization  and  a  government  or  any  department  or  agency  thereof.

     h.     "REGISTER," "REGISTERED," and "REGISTRATION" refer to a registration
effected by preparing and filing one or more Registration Statements (as defined
below)  in  compliance  with  the  1933  Act  and  pursuant  to Rule 415 and the
declaration  of  effectiveness  of  such  Registration  Statement(s) by the SEC.

     i.     "REGISTRABLE  SECURITIES"  means (i) the Conversion Shares issued or
issuable  upon  conversion  of  the  Notes,  (ii)  the  Warrant Shares issued or
issuable  upon  exercise  of  the  Warrants, (iii) the Interest Shares issued or
issuable  under  the  Notes  and (iv) any share capital of the Company issued or
issuable,  with  respect  to  the  Conversion  Shares,  the Interest Shares, the
Warrant  Shares  or the Warrants as a result of any share split, share dividend,
recapitalization,  exchange or similar event or otherwise, without regard to any
limitations  on  conversions  of  the  Notes  or  exercises  of  the  Warrants.

     j.     "REGISTRATION  STATEMENT"  means  a  registration  statement  or
registration  statements  of  the  Company filed under the 1933 Act covering the
Registrable  Securities.

     k.     "REQUIRED  HOLDERS"  means the holders of at least a majority of the
Registrable  Securities.

     l.     "REQUIRED  REGISTRATION  AMOUNT"  means  100%  of the sum of (i) the
maximum  number  of Interest Shares issued and issuable pursuant to the terms of
the  Notes calculated as if all such Interest Shares were to be issued as of the
trading  date  immediately  preceding the applicable date of determination, (ii)
the  number of Conversion Shares issued and issuable pursuant to the Notes as of
the  trading day immediately preceding the applicable date of determination, and
(iii)  the number of Warrant Shares issued and issuable pursuant to the Warrants
as  of  the  trading  day  immediately  preceding  the  applicable  date  of
determination,  all  subject  to  adjustment  as  provided  in  Section  2(c).

                                        2
<PAGE>
     m.     "RULE  415"  means Rule 415 under the 1933 Act or any successor rule
providing  for  offering  securities  on  a  continuous  or  delayed  basis.

     n.     "SEC"  means  the  United States Securities and Exchange Commission.

2.     Registration.

     a.     Mandatory  Registration.  The Company shall prepare, and, as soon as
practicable,  but  in no event later than the Filing Deadline, file with the SEC
the  Registration  Statement  on  Form  S-3  covering  the  resale of all of the
Registrable  Securities.  In  the  event that Form S-3 is unavailable for such a
registration,  the  Company shall use such other form as is available for such a
registration  on  another appropriate form reasonably acceptable to the Required
Holders.  The Registration Statement prepared pursuant hereto shall register for
resale  at  least  the  number  of  shares of Common Stock equal to the Required
Registration Amount as of the date the Registration Statement is initially filed
with  the  SEC.  The Company shall use its best efforts to have the Registration
Statement  declared effective by the SEC as soon as practicable, but in no event
later  than  the  Effectiveness  Deadline.

     b.     Allocation  of  Registrable  Securities.  The  initial  number  of
Registrable  Securities  included in any Registration Statement and any increase
in  the number of Registrable Securities included therein shall be allocated pro
rata  among  the Investors based on the number of Registrable Securities held by
each  Investor  at  the  time  the  Registration Statement covering such initial
number  of  Registrable  Securities or increase thereof is declared effective by
the SEC.  In the event that an Investor sells or otherwise transfers any of such
Investor's  Registrable  Securities,  each  transferee  that becomes an Investor
shall  be  allocated  a  pro  rata  portion  of  the  then  remaining  number of
Registrable  Securities  included  in  such  Registration  Statement  for  such
transferor.  Any Shares of Common Stock included in a Registration Statement and
which  remain  allocated  to  any  Person  which  ceases to hold any Registrable
Securities  covered  by  such  Registration  Statement shall be allocated to the
remaining Investors, pro rata based on the number of Registrable Securities then
held  by such Investors which are covered by such Registration Statement.  In no
event shall the Company include any securities other than Registrable Securities
on  any Registration Statement without the prior written consent of the Required
Holders.

     c.     Sufficient  Number of Shares Registered.  In the event the number of
shares  available  under a Registration Statement filed pursuant to Section 2(a)
is  insufficient  to  cover  all  of  the  Registrable Securities required to be
covered by such Registration Statement or an Investor's allocated portion of the
Registrable  Securities  pursuant  to  Section 2(b), the Company shall amend the
applicable  Registration Statement, or file a new Registration Statement (on the
short  form available therefor, if applicable), or both, so as to cover at least
the Required Registration Amount as of the trading day immediately preceding the
date  of  the  filing  of  such amendment or new Registration Statement, in each
case,  as soon as practicable, but in any event not later than fifteen (15) days
after  the necessity therefor arises.  The Company shall use its best efforts to
cause  such  amendment  and/or new Registration Statement to become effective as
soon as practicable following the filing thereof.  For purposes of the foregoing
provision,  the  number of shares available under a Registration Statement shall
be  deemed  "insufficient  to  cover  all  of

                                        3
<PAGE>
the  Registrable Securities" if at any time the number of shares of Common Stock
available  for  resale under the Registration Statement is less than the product
determined  by  multiplying (i) the Required Registration Amount as of such time
by (ii) 0.90.  The calculation set forth in the foregoing sentence shall be made
without regard to any limitations on the conversion of the Notes or the exercise
of  the  Warrants  and  such  calculation  shall  assume that the Notes are then
convertible  into  Shares of Common Stock at the then prevailing Conversion Rate
(as  defined in the Notes) and that the Warrants are then exercisable for Shares
of  Common  Stock  at  the  then  prevailing  Exercise  Price (as defined in the
Warrants).

     d.     Effect  of  Failure to File and Obtain and Maintain Effectiveness of
Registration  Statement.  If  (i)  a  Registration Statement covering all of the
Registrable  Securities  required to be covered thereby and required to be filed
by  the  Company  pursuant to this Agreement is (A) not filed with the SEC on or
before  the  respective Filing Deadline (a "FILING FAILURE") or (B) not declared
effective  by  the  SEC  on  or before the respective Effectiveness Deadline (an
"EFFECTIVENESS  FAILURE")  or  (ii) on any day after the Effective Date sales of
all  of  the Registrable Securities required to be included on such Registration
Statement  cannot  be  made  (other  than  during  an Allowable Grace Period (as
defined  in  Section  3(m))  pursuant to such Registration Statement (including,
without  limitation,  because  of  a failure to keep such Registration Statement
effective,  to  disclose  such  information as is necessary for sales to be made
pursuant  to  such  Registration Statement or to register a sufficient number of
Shares  of  Common  Stock) (a "MAINTENANCE FAILURE") then, as partial relief for
the  damages  to  any  holder by reason of any such delay in or reduction of its
ability  to  sell  the  underlying Shares of Common Stock (which remedy shall be
exclusive of any other remedies available at law or in equity, the Company shall
pay  to  each  holder  of  Registrable  Securities relating to such Registration
Statement  an  amount  in  cash  equal  to  two  percent (2.0%) of the aggregate
Purchase Price (as such term is defined in the Securities Purchase Agreement) of
such  Investor's  Registrable Securities included in such Registration Statement
on  each  of  the following dates:  (i) the day of a Filing Failure and on every
thirtieth  day  (pro  rated  for periods totaling less than thirty days) after a
Filing  Failure  until  such  Filing  Failure  is  cured;  (ii)  the  day  of an
Effectiveness Failure and on every thirtieth day (pro rated for periods totaling
less  than  thirty days) after an Effectiveness Failure until such Effectiveness
Failure  is  cured;  and  (iii)  the initial day of a Maintenance Failure and on
every thirtieth day (pro rated for periods totaling less than thirty days) after
a  Maintenance Failure until such Maintenance Failure is cured.  The payments to
which  a  holder shall be entitled pursuant to this Section 2(d) are referred to
herein  as  "REGISTRATION  DELAY PAYMENTS." Registration Delay Payments shall be
paid on the day of the Filing Failure, Effectiveness Failure and the initial day
of  a  Maintenance  Failure, as applicable, and thereafter on the earlier of (I)
the  thirtieth  day  after  the event or failure giving rise to the Registration
Delay  Payments  has occurred and (II) the third Business Day after the event or
failure  giving  rise  to  the  Registration  Delay  Payments  is  cured.

3.     Related  Obligations.  At such time as the Company is obligated to file a
Registration  Statement  with  the  SEC  pursuant  to  Section 2(a) or 2(c), the
Company  will use its best efforts to effect the registration of the Registrable
Securities  in  accordance  with the intended method of disposition thereof and,
pursuant  thereto,  the  Company  shall  have  the  following  obligations:

     a.     The  Company  shall  promptly  prepare  and  file  with  the  SEC  a
Registration  Statement  with  respect to the Registrable Securities and use its
reasonable  best  efforts  to  cause such Registration Statement relating to the
Registrable  Securities  to  become  effective  as  soon  as

                                        4
<PAGE>
practicable  after  such  filing  (but  in no event later than the Effectiveness
Deadline).  The  Company  shall  keep  each  Registration  Statement  effective
pursuant  to Rule 415 at all times until the earlier of (i) the date as of which
the  Investors  may  sell  all  of  the  Registrable  Securities covered by such
Registration  Statement  without  restriction  pursuant  to  Rule 144(k) (or any
successor  thereto) promulgated under the 1933 Act or (ii) the date on which the
Investors  shall  have  sold  all  of the Registrable Securities covered by such
Registration  Statement  (the  "REGISTRATION PERIOD").  The Company shall ensure
that  each  Registration  Statement  (including  any  amendments  or supplements
thereto  and  prospectuses  contained  therein)  shall  not  contain  any untrue
statement  of  a  material  fact or omit to state a material fact required to be
stated  therein,  or  necessary  to  make the statements therein (in the case of
prospectuses,  in  the  light  of the circumstances in which they were made) not
misleading.  The Company shall submit to the SEC, within three (3) Business Days
after  the  later  of  the  date  that  the  Company  learns that no review of a
particular  Registration  Statement will be made by the staff of the SEC or that
the staff has no further comments on a particular Registration Statement, as the
case  may  be,  a request for acceleration of effectiveness of such Registration
Statement  to  a  time  and date not later than 48 hours after the submission of
such  request.

     b.     The  Company  shall  prepare  and  file with the SEC such amendments
(including  post-effective  amendments)  and  supplements  to  a  Registration
Statement  and  the  prospectus  used  in  connection  with  such  Registration
Statement,  which  prospectus  is  to  be filed pursuant to Rule 424 promulgated
under  the  1933  Act,  as  may be necessary to keep such Registration Statement
effective  at all times during the Registration Period, and, during such period,
comply  with  the  provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by such Registration Statement
until  such  time as all of such Registrable Securities shall have been disposed
of  in  accordance  with  the  intended  methods of disposition by the seller or
sellers  thereof  as  set  forth in such Registration Statement.  In the case of
amendments  and supplements to a Registration Statement which are required to be
filed  pursuant  to  this Agreement (including pursuant to this Section 3(b)) by
reason  of  the Company filing a report on Form 10-Q, Form 10-K or any analogous
report  under  the Securities Exchange Act of 1934, as amended (the "1934 ACT"),
the  Company  shall  have  incorporated  such  report  by  reference  into  such
Registration  Statement,  if  applicable,  or  shall  file  such  amendments  or
supplements  with  the SEC on the same day on which the 1934 Act report is filed
which  created  the  requirement  for  the  Company  to amend or supplement such
Registration  Statement.

     c.     The  Company shall use its best efforts to (i) register and qualify,
unless  an  exemption from registration and qualification applies, the resale by
Investors  of  the  Registrable  Securities  covered by a Registration Statement
under  such  other securities or "blue sky" laws of all applicable jurisdictions
in  the  United  States,  (ii)  prepare  and  file  in those jurisdictions, such
amendments  (including  post-effective  amendments)  and  supplements  to  such
registrations  and  qualifications  as  may  be  necessary  to  maintain  the
effectiveness  thereof  during  the  Registration  Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect  at  all  times  during  the Registration Period, and (iv) take all other
actions  reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required  in connection therewith or as a condition thereto to (x) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but  for  this  Section  3(c),  (y)  subject  itself  to  general  taxation  in

                                        5
<PAGE>
any  such  jurisdiction,  or (z) file a general consent to service of process in
any  such  jurisdiction.  The  Company  shall  promptly notify each Investor who
holds  Registrable  Securities of the receipt by the Company of any notification
with  respect  to  the suspension of the registration or qualification of any of
the  Registrable  Securities for sale under the securities or "blue sky" laws of
any  jurisdiction  in  the  United States or its receipt of actual notice of the
initiation  or  threatening  of  any  proceeding  for  such  purpose.

     d.     The  Company  shall notify each Investor in writing of the happening
of  any event, as promptly as practicable after becoming aware of such event, as
a  result  of which the prospectus included in a Registration Statement, as then
in  effect, includes an untrue statement of a material fact or omission to state
a  material  fact  required  to  be  stated  therein  or  necessary  to make the
statements  therein,  in  the  light  of the circumstances under which they were
made,  not  misleading  (provided that in no event shall such notice contain any
material, nonpublic information), and, subject to Section 3(m), promptly prepare
a  supplement or amendment to such Registration Statement to correct such untrue
statement  or omission.  The Company shall also promptly notify each Investor in
writing  (i)  when  a  prospectus or any prospectus supplement or post-effective
amendment  has  been  filed,  and  when  a  Registration  Statement  or  any
post-effective  amendment  has  become effective, (ii) of any request by the SEC
for  amendments or supplements to a Registration Statement or related prospectus
or related information, and (iii) of the Company's reasonable determination that
a  post-effective  amendment  to  a Registration Statement would be appropriate.

     e.     The  Company  shall  use its best efforts to prevent the issuance of
any stop order or other suspension of effectiveness of a Registration Statement,
or  the suspension of the qualification of any of the Registrable Securities for
sale  in  any  jurisdiction  and,  if  such an order or suspension is issued, to
obtain  the  withdrawal  of  such  order  or suspension at the earliest possible
moment  and  to notify each Investor who holds Registrable Securities being sold
of  the  issuance  of  such  order  and the resolution thereof or its receipt of
actual  notice  of  the initiation or threat of any proceeding for such purpose.

     f.     The  Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company unless (i) disclosure
of  such  information  is  necessary  to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement  or  omission  in  any Registration Statement, (iii) the release of
such  information  is  ordered  pursuant  to  a  subpoena  or  other  final,
non-appealable  order  from  a  court  or  governmental  body  of  competent
jurisdiction,  or (iv) such information has been made generally available to the
public  other  than  by  disclosure  in violation of this Agreement or any other
agreement.  The  Company  agrees that it shall, upon learning that disclosure of
such  information  concerning  an  Investor  is  sought  in  or  by  a  court or
governmental  body of competent jurisdiction or through other means, give prompt
written  notice  to  such  Investor  and  allow such Investor, at the Investor's
expense,  to undertake appropriate action to prevent disclosure of, or to obtain
a  protective  order  for,  such  information.

     g.     The  Company  shall  use  its  best  efforts  to  cause  all  of the
Registrable  Securities  covered  by  a  Registration  Statement to be listed or
quoted on each securities exchange or securities association on which securities
of  the  same  class  or  series  issued  by  the  Company  are

                                        6
<PAGE>
then  listed,  if  any,  if  the  listing of such Registrable Securities is then
permitted  under  the  rules of such exchange or association.  The Company shall
pay  all  fees  and  expenses in connection with satisfying its obligation under
this  Section  3(g).

     h.     The  Company shall cooperate with the Investors who hold Registrable
Securities  being  offered  and, to the extent applicable, facilitate the timely
preparation  and  delivery  of certificates (not bearing any restrictive legend)
representing the Registrable Securities to be offered pursuant to a Registration
Statement  and  enable such certificates to be in such denominations or amounts,
as  the  case  may be, as the Investors may reasonably request and registered in
such  names  as  the  Investors  may  request.

     i.     If  requested  by  an  Investor,  the  Company shall within five (5)
business  days  of  receipt  of  notice  from such Investor (i) incorporate in a
prospectus  supplement  or  post-effective  amendment  such  information  as  an
Investor  reasonably  requests  to  be included therein relating to the sale and
distribution  of  Registrable  Securities,  including,  without  limitation,
information  with  respect to the number of Registrable Securities being offered
or  sold,  the  purchase  price  being  paid therefor and any other terms of the
offering  of  the  Registrable Securities to be sold in such offering; (ii) make
all  required  filings of such prospectus supplement or post-effective amendment
after  being  notified  of  the  matters  to  be incorporated in such prospectus
supplement  or post-effective amendment; and (iii) supplement or make amendments
to any Registration Statement if reasonably requested by an Investor holding any
Registrable  Securities.

     j.     The  Company  shall  use  its  best efforts to cause the Registrable
Securities  covered  by  the  Registration  Statement  to  be registered with or
approved  by such other governmental agencies or authorities as may be necessary
to  consummate  the  disposition  of  such  Registrable  Securities.

     k.     The  Company  shall make generally available to its security holders
as soon as practical, but not later than ninety (90) days after the close of the
period  covered  thereby,  an earnings statement (in form complying with, and in
the  manner provided by, the provisions of Rule 158 under the 1933 Act) covering
a  twelve-month  period  beginning not later than the first day of the Company's
fiscal  quarter next following the effective date of the Registration Statement.

     l.     The  Company shall otherwise use its best efforts to comply with all
applicable  rules and regulations of the SEC in connection with any registration
hereunder.

     m.  Notwithstanding  anything to the contrary herein, at any time after the
Registration  Statement  has been declared effective by the SEC, the Company may
delay  the disclosure of material, non-public information concerning the Company
the  disclosure  of  which  at the time is not, in the good faith opinion of the
Board  of  Directors of the Company and its counsel, in the best interest of the
Company  and,  in  the  opinion of counsel to the Company, otherwise required (a
"GRACE  PERIOD");  provided,  that  the  Company  shall  promptly (i) notify the
Investors in writing of the existence of material, non-public information giving
rise  to  a  Grace  Period  (provided  that  in each notice the Company will not
disclose  the content of such material, non-public information to the Investors)
and the date on which the Grace Period will begin, and (ii) notify the Investors

                                        7
<PAGE>
in  writing  of  the date on which the Grace Period ends; and, provided further,
that no Grace Period shall exceed five (5) consecutive days and during any three
hundred  sixty  five  (365)  day  period  such Grace Periods shall not exceed an
aggregate  of  twenty (20) days and the first day of any Grace Period must be at
least  two  (2) trading days after the last day of any prior Grace Period (each,
an  "ALLOWABLE GRACE PERIOD"). For purposes of determining the length of a Grace
Period above, the Grace Period shall begin on and include the date the Investors
receive  the  notice  referred to in clause (i) and shall end on and include the
later  of  the  date the Investors receive the notice referred to in clause (ii)
and  the  date referred to in such notice. The provisions of Section 3(e) hereof
shall  not  be  applicable during the period of any Allowable Grace Period. Upon
expiration  of  the  Grace Period, the Company shall again be bound by the first
sentence  of  Section  3(d)  with respect to the information giving rise thereto
unless  such  material,  non-public  information  is  no  longer  applicable.
Notwithstanding  anything  to the contrary, the Company shall cause its transfer
agent  to  deliver  unlegended  Shares  of  Common  Stock  to a transferee of an
Investor  in  accordance  with the terms of the Securities Purchase Agreement in
connection  with  any  sale  of  Registrable Securities with respect to which an
Investor  has  entered  into  a  contract  for sale, and delivered a copy of the
prospectus  included  as part of the applicable Registration Statement, prior to
the  Investor's  receipt  of  the  notice  of  a  Grace Period and for which the
Investor  has  not  yet  settled.

4.     Obligations  of  the  Investors.

     a.     At least five (5) days prior to the first anticipated filing date of
a  Registration  Statement, the Company shall notify each Investor in writing of
the  information  the  Company requires from each such Investor if such Investor
elects  to  have  any of such Investor's Registrable Securities included in such
Registration Statement.  It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement with respect
to  the Registrable Securities of a particular Investor that such Investor shall
furnish  to  the  Company  such  information  regarding  itself, the Registrable
Securities  held by it and the intended method of disposition of the Registrable
Securities  held  by  it, as shall be reasonably required to effect and maintain
the  effectiveness  of the registration of such Registrable Securities and shall
execute  such  documents in connection with such registration as the Company may
reasonably  request.

     b.     Each  Investor,  by  such  Investor's  acceptance of the Registrable
Securities,  agrees to cooperate with the Company as reasonably requested by the
Company  in  connection  with  the  preparation  and  filing of any Registration
Statement hereunder, unless such Investor has notified the Company in writing of
such  Investor's  election  to  exclude  all  of  such  Investor's  Registrable
Securities  from  such  Registration  Statement.

     c.  Each  Investor agrees that, upon receipt of any notice from the Company
of the happening of any event of the kind described in Section 3(e) or the first
sentence  of  3(d),  such  Investor  will immediately discontinue disposition of
Registrable  Securities  pursuant to any Registration Statement(s) covering such
Registrable  Securities  until  such  Investor's  receipt  of  the copies of the
supplemented  or  amended  prospectus  contemplated by Section 3(e) or the first
sentence  of  3(d)  or  receipt  of  notice  that  no supplement or amendment is
required.  Notwithstanding anything to the contrary, the Company shall cause its
transfer  agent  to deliver unlegended Shares of Common Stock to a transferee of

                                        8
<PAGE>
an Investor in accordance with the terms of the Securities Purchase Agreement in
connection  with  any  sale  of  Registrable Securities with respect to which an
Investor has entered into a contract for sale prior to the Investor's receipt of
a notice from the Company of the happening of any event of the kind described in
Section  3(e)  or  the first sentence of 3(d) and for which the Investor has not
yet  settled.

     d.     Each  Investor  covenants  and  agrees  that it will comply with the
prospectus  delivery  requirements  of  the  1933  Act  as  applicable  to it in
connection  with  sales  of  Registrable Securities pursuant to the Registration
Statement.

5.     Expenses  of  Registration.  All  reasonable  expenses,  other  than
under-writing  discounts  and  commissions,  incurred  in  connection  with
registrations,  filings  or  qualifications  pursuant  to  Sections  2  and  3,
including,  without  limitation,  all  registration,  listing and qualifications
fees,  printers  and  accounting fees, and fees and disbursements of counsel for
the  Company  shall  be  paid  by  the  Company.

6.     Indemnification.  In the event any Registrable Securities are included in
a  Registration  Statement  under  this  Agreement:

     a.     To the fullest extent permitted by law, the Company will, and hereby
does,  indemnify,  hold  harmless  and  defend  each  Investor,  the  directors,
officers,  members,  partners,  employees,  agents, representatives of, and each
Person,  if any, who controls any Investor within the meaning of the 1933 Act or
the  1934  Act  (each,  an  "INDEMNIFIED  PERSON"),  against any losses, claims,
damages,  liabilities,  judgments,  fines, penalties, charges, costs, reasonable
attorneys'  fees,  amounts  paid  in  settlement  or expenses, joint or several,
(collectively,  "CLAIMS")  incurred in investigating, preparing or defending any
action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing  by  or  before  any  court  or  governmental, administrative or other
regulatory  agency,  body  or the SEC, whether pending or threatened, whether or
not  an  indemnified party is or may be a party thereto ("INDEMNIFIED DAMAGES"),
to  which  any  of them may become subject insofar as such Claims (or actions or
proceedings,  whether  commenced or threatened, in respect thereof) arise out of
or  are  based  upon:  (i) any untrue statement or alleged untrue statement of a
material  fact  in  a  Registration  Statement  or  any post-effective amendment
thereto  or  in  any  filing  made  in  connection with the qualification of the
offering  under  the  securities or other "blue sky" laws of any jurisdiction in
which Registrable Securities are offered ("BLUE SKY FILING"), or the omission or
alleged  omission  to  state  a  material  fact required to be stated therein or
necessary  to  make  the  statements  therein  not  misleading,  (ii) any untrue
statement  or  alleged  untrue  statement  of  a  material fact contained in any
preliminary  prospectus if used prior to the effective date of such Registration
Statement,  or contained in the final prospectus (as amended or supplemented, if
the  Company  files any amendment thereof or supplement thereto with the SEC) or
the omission or alleged omission to state therein any material fact necessary to
make  the statements made therein, in light of the circumstances under which the
statements  therein  were  made,  not misleading, (iii) any violation or alleged
violation  by  the  Company  of  the  1933  Act,  the  1934  Act, any other law,
including,  without  limitation,  any  state  securities  law,  or  any  rule or
regulation  thereunder  relating  to  the  offer  or  sale  of  the  Registrable
Securities  pursuant  to  a Registration Statement or (iv) any violation of this
Agreement  (the  matters  in  the  foregoing  clauses  (i)  through  (iv) being,
collectively,

                                        9
<PAGE>
"VIOLATIONS").  Subject  to  Section  6(c),  the  Company  shall  reimburse  the
Indemnified  Persons,  promptly  as  such  expenses are incurred and are due and
payable,  for  any  legal  fees or other reasonable expenses incurred by them in
connection  with  investigating  or  defending  any such Claim.  Notwithstanding
anything  to  the  contrary  contained  herein,  the  indemnification  agreement
contained  in  this  Section  6(a):  (i)  shall  not  apply  to  a  Claim  by an
Indemnified  Person  arising  out  of  or based upon a Violation which occurs in
reliance  upon  and  in  conformity with information furnished in writing to the
Company by such Indemnified Person for such Indemnified Person expressly for use
in  connection  with  the  preparation of the Registration Statement or any such
amendment  thereof  or  supplement  thereto;  (ii) shall not be available to the
extent  such  Claim is based on a failure of the Investor to deliver or to cause
to  be  delivered  the  prospectus  made  available  by the Company, including a
corrected prospectus; and (iii) shall not apply to amounts paid in settlement of
any  Claim  if  such settlement is effected without the prior written consent of
the  Company, which consent shall not be unreasonably withheld or delayed.  Such
indemnity  shall remain in full force and effect regardless of any investigation
made by or on behalf of the Indemnified Person and shall survive the transfer of
the  Registrable  Securities  by  the  Investors  pursuant  to  Section  9.

     b.     In  connection  with any Registration Statement in which an Investor
is  participating,  each  such  Investor  agrees  to  severally  and not jointly
indemnify,  hold  harmless and defend, to the same extent and in the same manner
as is set forth in Section 6(a), the Company, each of its directors, each of its
officers  who  signs  the  Registration  Statement  and each Person, if any, who
controls  the  Company within the meaning of the 1933 Act or the 1934 Act (each,
an  "INDEMNIFIED  PARTY"), against any Claim or Indemnified Damages to which any
of  them  may  become  subject,  under  the 1933 Act, the 1934 Act or otherwise,
insofar  as such Claim or Indemnified Damages arise out of or are based upon any
Violation,  in  each  case  to  the  extent,  and  only to the extent, that such
Violation  occurs  in  reliance  upon and in conformity with written information
furnished  to  the Company by such Investor expressly for use in connection with
such  Registration  Statement;  and, subject to Section 6(c), such Investor will
reimburse  any  legal  or  other  expenses reasonably incurred by an Indemnified
Party  in  connection  with investigating or defending any such Claim; provided,
however,  that  the  indemnity  agreement contained in this Section 6(b) and the
agreement with respect to contribution contained in Section 7 shall not apply to
amounts  paid  in settlement of any Claim if such settlement is effected without
the  prior  written  consent  of  such  Investor,  which  consent  shall  not be
unreasonably  withheld or delayed; provided, further, however, that the Investor
shall  be  liable  under  this  Section  6(b) for only that amount of a Claim or
Indemnified  Damages  as  does not exceed the net proceeds to such Investor as a
result  of  the  sale  of  Registrable  Securities pursuant to such Registration
Statement.  Such  indemnity  shall remain in full force and effect regardless of
any  investigation  made  by  or  on  behalf of such Indemnified Party and shall
survive  the transfer of the Registrable Securities by the Investors pursuant to
Section  9.  Notwithstanding  anything  to  the  contrary  contained herein, the
indemnification  agreement  contained  in  this Section 6(b) with respect to any
preliminary  prospectus  shall not inure to the benefit of any Indemnified Party
if  the  untrue  statement  or  omission  of  material  fact  contained  in  the
preliminary  prospectus  was  corrected  on a timely basis in the prospectus, as
then  amended  or  supplemented.

     c.     Promptly after receipt by an Indemnified Person or Indemnified Party
under  this  Section 6 of notice of the commencement of any action or proceeding
(including  any

                                       10
<PAGE>
governmental action or proceeding) involving a Claim, such Indemnified Person or
Indemnified Party shall, if a Claim in respect thereof is to be made against any
indemnifying  party  under  this  Section 6, deliver to the indemnifying party a
written  notice  of  the  commencement thereof, and the indemnifying party shall
have  the  right to participate in, and, to the extent the indemnifying party so
desires,  jointly with any other indemnifying party similarly noticed, to assume
control  of  the  defense  thereof  with  counsel  mutually  satisfactory to the
indemnifying  party  and the Indemnified Person or the Indemnified Party, as the
case  may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses of not
more than one counsel for all such Indemnified Person or Indemnified Party to be
paid  by  the  indemnifying  party,  if,  in  the  reasonable opinion of counsel
retained  by  the  indemnifying party, the representation by such counsel of the
Indemnified  Person  or  Indemnified  Party  and the indemnifying party would be
inappropriate  due  to  actual  or  potential  differing  interests between such
Indemnified  Person or Indemnified Party and any other party represented by such
counsel in such proceeding.  In the case of an Indemnified Person, legal counsel
referred  to  in  the  immediately  preceding  sentence shall be selected by the
Investors  holding at least a majority in interest of the Registrable Securities
included  in  the  Registration  Statement  to  which  the  Claim  relates.  The
Indemnified  Party  or  Indemnified  Person  shall cooperate reasonably with the
indemnifying  party  in  connection  with any negotiation or defense of any such
action  or Claim by the indemnifying party and shall furnish to the indemnifying
party  all  information  reasonably  available  to  the  Indemnified  Party  or
Indemnified  Person  which  relates  to  such action or Claim.  The indemnifying
party  shall  keep the Indemnified Party or Indemnified Person fully apprised at
all  times  as  to the status of the defense or any settlement negotiations with
respect  thereto.  No  indemnifying  party shall be liable for any settlement of
any  action,  claim  or  proceeding  effected without its prior written consent,
provided,  however, that the indemnifying party shall not unreasonably withhold,
delay  or condition its consent.  No indemnifying party shall, without the prior
written consent of the Indemnified Party or Indemnified Person, consent to entry
of  any judgment or enter into any settlement or other compromise which does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to  such Indemnified Party or Indemnified Person of a release from all liability
in  respect  to such Claim or litigation.  Following indemnification as provided
for  hereunder,  the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or  corporations relating to the matter for which indemnification has been made.
The  failure  to  deliver  written  notice  to  the  indemnifying party within a
reasonable  time  of  the commencement of any such action shall not relieve such
indemnifying  party  of  any  liability to the Indemnified Person or Indemnified
Party  under this Section 6, except to the extent that the indemnifying party is
prejudiced  in  its  ability  to  defend  such  action.

     d.     The  indemnification  required  by  this  Section 6 shall be made by
periodic  payments  of the amount thereof during the course of the investigation
or  defense, as and when bills are received or Indemnified Damages are incurred.

     e.     The  indemnity  agreements  contained herein shall be in addition to
(i) any cause of action or similar right of the Indemnified Party or Indemnified
Person  against  the  indemnifying party or others, and (ii) any liabilities the
indemnifying  party  may  be  subject  to  pursuant  to  the  law.

                                       11
<PAGE>
7.     Contribution.  To the extent any indemnification by an indemnifying party
is  prohibited  or  limited  by  law,  the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would otherwise be
liable  under  Section  6  to  the  fullest  extent  permitted by law; provided,
however,  that:  (i)  no  Person  involved in the sale of Registrable Securities
which  Person  is  guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to
contribution from any Person involved in such sale of Registrable Securities who
was  not  guilty  of  fraudulent misrepresentation; and (ii) contribution by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds  received  by  such seller from the sale of such Registrable Securities
pursuant  to  such  Registration  Statement.

8.     Reports  Under  the  1934  Act.  With  a  view to making available to the
Investors  the  benefits of Rule 144 promulgated under the 1933 Act or any other
similar  rule or regulation of the SEC that may at any time permit the Investors
to  sell  securities  of  the  Company to the public without registration ("RULE
144"),  the  Company  agrees  until  four  years  from  Closing  to:

     a.     make  and  keep  public  information  available,  as those terms are
understood  and  defined  in  Rule  144;

     b.     file with the SEC in a timely manner all reports and other documents
required  of  the  Company  under  the  1933 Act and the 1934 Act so long as the
Company  remains  subject to such requirements (it being understood that nothing
herein  shall  limit  the  Company's  obligations  under  Section  4(c)  of  the
Securities  Purchase  Agreement)  and  the  filing  of  such  reports  and other
documents  is  required  for  the  applicable  provisions  of  Rule  144;  and

     c.     furnish  to  each Investor so long as such Investor owns Registrable
Securities,  promptly  upon  request,  (i)  a  copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the  Company,  and (ii) such other information as may be reasonably requested to
permit  the  Investors  to  sell  such  securities  pursuant to Rule 144 without
registration.

9.     Assignment of Registration Rights.  The rights under this Agreement shall
be  automatically  assignable  by  the Investors to any transferee of all or any
portion of such Investor's Registrable Securities if: (i) the Investor agrees in
writing  with  the  transferee  or assignee to assign such rights, and a copy of
such  agreement  is furnished to the Company within a reasonable time after such
assignment; (ii) the Company is, within a reasonable time after such transfer or
assignment,  furnished  with  written notice of (a) the name and address of such
transferee  or  assignee,  and  (b)  the  securities  with respect to which such
registration  rights  are  being  transferred  or  assigned;  (iii)  immediately
following such transfer or assignment the further disposition of such securities
by  the  transferee  or assignee is restricted under the 1933 Act and applicable
state  securities  laws;  (iv)  at  or  before the time the Company receives the
written  notice  contemplated  by clause (ii) of this sentence the transferee or
assignee agrees in writing with the Company to be bound by all of the provisions
contained  herein; and (v) such transfer shall have been made in accordance with
the  applicable  requirements  of  the  Securities  Purchase  Agreement.

                                       12
<PAGE>
10.     Amendment  of  Registration Rights.  Provisions of this Agreement may be
amended  and  the  observance  thereof  may  be waived (either generally or in a
particular  instance  and  either retroactively or prospectively), only with the
written  consent  of  the  Company  and  the Required Holders.  Any amendment or
waiver  effected  in  accordance with this Section 10 shall be binding upon each
Investor  and  the  Company.  No such amendment shall be effective to the extent
that  it  applies to less than all of the holders of the Registrable Securities.
No consideration shall be offered or paid to any Person to amend or consent to a
waiver or modification of any provision of any of this Agreement unless the same
consideration  also  is  offered  to  all  of  the  parties  to  this Agreement.

11.     Miscellaneous.

     a.     A Person is deemed to be a holder of Registrable Securities whenever
such  Person owns or is deemed to own of record such Registrable Securities.  If
the  Company receives conflicting instructions, notices or elections from two or
more  Persons with respect to the same Registrable Securities, the Company shall
act  upon the basis of instructions, notice or election received from the record
owner  of  such  Registrable  Securities.

     b.     Any  notices,  consents, waivers or other communications required or
permitted  to  be given under the terms of this Agreement must be in writing and
will  be  deemed  to  have  been  delivered:  (i)  upon  receipt, when delivered
personally;  (ii) upon receipt, when sent by facsimile (provided confirmation of
transmission is mechanically or electronically generated and kept on file by the
sending  party);  or  (iii)  one  Business  Day  after deposit with a nationally
recognized  overnight  delivery  service, in each case properly addressed to the
party  to  receive  the  same.  The  addresses  and  facsimile  numbers for such
communications  shall  be:

               If  to  the  Company:

                         Sorell  Inc.
                         Buk-ri  35
                         Nama-Myun
                         Yongin  City,  South Korea
                         Telephone:     +82312334664
                         Facsimile:     +82312334795
                         Attention:     Bon Kwan Ku, Chief Executive Officer

                    With  a  copy  (for  informational  purposes  only)  to:

                         Sichenzia  Ross  Friedman  Ference  LLP
                         1065  Avenue  of  the  Americas,  21st  Floor
                         New  York,  New  York  10018

                         Telephone:     (212)  930-9700
                         Facsimile:     (212)  930-9725
                         Attention:     Marc  J.  Ross,  Esq.

                                       13
<PAGE>
                         And  to:

                         Cutler  Law  Group
                         3206  West  Wimbledon  Dr
                         Augusta,  GA  30909
                         Telephone:     (706)  737-6600
                         Facsimile:     (706)  738-1966
                         Attention:     M.  Richard  Cutler,  Esq.

               If  to  a Buyer, to its address and facsimile number set forth on
          the  Schedule  of  Buyers attached hereto, with copies to such Buyer's
          representatives  as  set  forth  on  the  Schedule  of  Buyers,

or to such other address and/or facsimile number and/or to the attention of such
other  Person  as  the  recipient party has specified by written notice given to
each  other  party  five  (5)  days  prior  to the effectiveness of such change.
Written  confirmation  of  receipt  (A)  given  by the recipient of such notice,
consent,  waiver  or  other  communication,  (B)  mechanically or electronically
generated by the sender's facsimile machine containing the time, date, recipient
facsimile  number  and  an  image  of the first page of such transmission or (C)
provided  by a courier or overnight courier service shall be rebuttable evidence
of  personal  service,  receipt  by  facsimile  or  receipt  from  a  nationally
recognized  overnight  delivery  service  in accordance with clause (i), (ii) or
(iii)  above,  respectively.

     c.     Failure  of  any  party  to  exercise any right or remedy under this
Agreement  or otherwise, or delay by a party in exercising such right or remedy,
shall  not  operate  as  a  waiver  thereof.

     d.     All questions concerning the construction, validity, enforcement and
interpretation  of  this Agreement shall be governed by the internal laws of the
State of New York, without giving effect to any choice of law or conflict of law
provision  or rule (whether of the State of New York or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than the
State  of  New  York.  Each  party  hereby  irrevocably submits to the exclusive
jurisdiction  of  the  state and federal courts sitting in The City of New York,
Borough  of  Manhattan,  for  the  adjudication  of  any dispute hereunder or in
connection  herewith  or  with  any transaction contemplated hereby or discussed
herein,  and  hereby  irrevocably  waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that  it  is  not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of  this  Agreement  in  any

                                       14
<PAGE>
other jurisdiction.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE,
AND  AGREES  NOT  TO  REQUEST,  A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE
HEREUNDER  OR  IN  CONNECTION  HEREWITH  OR ARISING OUT OF THIS AGREEMENT OR ANY
TRANSACTION  CONTEMPLATED  HEREBY.

     e.     This  Agreement,  the other Transaction Documents (as defined in the
Securities Purchase Agreement) and the instruments referenced herein and therein
constitute  the  entire  agreement  among the parties hereto with respect to the
subject  matter  hereof  and  thereof.  There  are  no  restrictions,  promises,
warranties or undertakings, other than those set forth or referred to herein and
therein.  This  Agreement,  the  other Transaction Documents and the instruments
referenced  herein and therein supersede all prior agreements and understandings
among  the parties hereto with respect to the subject matter hereof and thereof.

     f.     Subject to the requirements of Section 9, this Agreement shall inure
to  the  benefit  of and be binding upon the permitted successors and assigns of
each  of  the  parties  hereto.

     g.     The headings in this Agreement are for convenience of reference only
and  shall  not  limit  or  otherwise  affect  the  meaning  hereof.

     h.     This  Agreement  may  be executed in identical counterparts, each of
which  shall be deemed an original but all of which shall constitute one and the
same  agreement.  This  Agreement, once executed by a party, may be delivered to
the  other  party  hereto  by facsimile transmission of a copy of this Agreement
bearing  the  signature  of  the  party  so  delivering  this  Agreement.

     i.     Each  party shall do and perform, or cause to be done and performed,
all  such  further acts and things, and shall execute and deliver all such other
agreements,  certificates,  instruments  and  documents  as  any other party may
reasonably  request in order to carry out the intent and accomplish the purposes
of  this Agreement and the consummation of the transactions contemplated hereby.

     j.     All  consents  and  other  determinations required to be made by the
Investors  pursuant  to this Agreement shall be made, unless otherwise specified
in  this  Agreement,  by  the  Required  Holders.

     k.     The  language  used  in  this  Agreement  will  be  deemed to be the
language  chosen  by  the parties to express their mutual intent and no rules of
strict  construction  will be applied against any party, determined as if all of
the  Notes  held  by  Investors  then  outstanding  have  been  converted  into
Registrable Securities and all Warrants then outstanding have been exercised for
Registrable  Securities  without  regard to any limitations on conversion of the
Notes  or  on  exercises  of  the  Warrants.

     l.     This Agreement is intended for the benefit of the parties hereto and
their  respective  permitted  successors and assigns, and is not for the benefit
of,  nor  may  any  provision  hereof  be  enforced  by,  any  other  Person.

                                       15
<PAGE>
     m.     Unless  otherwise  indicated, all dollar amounts referred to in this
Agreement  are in United States Dollars ("US DOLLARS").  All amounts owing under
this  Agreement  or  any  Transaction Document shall be paid in US Dollars.  All
amounts  denominated  in  other  currencies  shall be converted in the US Dollar
equivalent  amount  in  accordance  with  the  Exchange  Rate  on  the  date  of
calculation.  "EXCHANGE RATE" means, in relation to any amount of currency to be
converted  into  US  Dollars  pursuant to this Agreement, the US Dollar exchange
rate  as  published  in  the  Wall  Street  Journal  on  the  relevant  date  of
calculation.

     n.     (i)     If  for  the  purpose  of  obtaining  or  enforcing judgment
against  the  Company  or  any  Subsidiary,  in any court in any jurisdiction it
becomes  necessary to convert into any other currency (such other currency being
hereinafter  in  this  Section  11(n) referred to as the "JUDGMENT CURRENCY") an
amount  due  in US Dollars under this Agreement, the conversion shall be made at
the  Exchange  Rate  prevailing  on  the  Business  Day  immediately  preceding:

               (A)     the date of actual payment of the amount due, in the case
of  any  proceeding  in  the  courts  of  New York or in the courts of any other
jurisdiction  that  will give effect to such conversion being made on such date:
or
               (B)     the  date  on  which the foreign court determines, in the
case  of  any proceeding in the courts of any other jurisdiction (the date as of
which  such  conversion is made pursuant to this Section 11(n) being hereinafter
referred  to  as  the  "JUDGMENT  CONVERSION  DATE").

          (ii)     If  in  the  case  of  any  proceeding  in  the  court of any
jurisdiction  referred to in Section 11(n)(i)(B) above, there is a change in the
Exchange  Rate  prevailing  between the Judgment Conversion Date and the date of
actual  payment  of the amount due, the applicable party shall pay such adjusted
amount  as  may  be  necessary  to  ensure  that the amount paid in the Judgment
Currency, when converted at the Exchange Rate prevailing on the date of payment,
will  produce  the amount of US Dollars which could have been purchased with the
amount  of Judgment Currency stipulated in the judgment or judicial order at the
Exchange  Rate  prevailing  on  the  Judgment  Conversion  Date.
Any amount due from the Company or any Subsidiary, under this provision shall be
due  as a separate debt and shall not be affected by judgment being obtained for
any  other  amounts  due  under  or  in  respect  of  this  Agreement.

     o.     The obligations of each Investor hereunder are several and not joint
with  the  obligations of any other Investor, and no provision of this Agreement
is  intended  to  confer  any  obligations  on  any Investor vis- -vis any other
Investor.  Nothing  contained  herein,  and  no  action  taken  by  any Investor
pursuant  hereto,  shall be deemed to constitute the Investors as a partnership,
an  association,  a  joint  venture  or  any  other  kind of entity, or create a
presumption  that  the  Investors are in any way acting in concert or as a group
with  respect  to  such  obligations  or  the  transactions contemplated herein.

                            [Signature Pages Follow]

                                       16
<PAGE>
     IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
signature  page  to this Securities Purchase Agreement to be duly executed as of
the  date  first  written  above.

COMPANY:
SORELL  INC.

By:
Name:   Bon  Kwan  Koo
Title:  Chief  Executive  Officer

                                       17
<PAGE>
     IN WITNESS WHEREOF, each Buyer and the Company have caused their respective
signature  page  to this Securities Purchase Agreement to be duly executed as of
the  date  first  written  above.

BUYERS:

By:
Name:
Title:

                                       18
<PAGE>

                               SCHEDULE OF BUYERS
<TABLE>
<CAPTION>

<S>                  <C>                         <C>               <C>           <C>
(1)                  (2)                         (3)               (4)           (5)
                                                 AGGREGATE         AGGREGATE     LEGAL
                     ADDRESS AND                 PRINCIPAL         NUMBER        REPRESENTATIVE'S ADDRESS
BUYER                FACSIMILE NUMBER            AMOUNT OF NOTES   OF WARRANTS   AND FACSIMILE NUMBER

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------

-------------------  --------------------------  ----------------  ------------  -------------------------
</TABLE>
                                       19
<PAGE>Property Management Agreement between PMSR and U-Haul

    

    Exhibit
      10.81

    PROPERTY
      MANAGEMENT
      AGREEMENT

     

    THIS
      PROPERTY MANAGEMENT AGREEMENT (this
      "Agreement")
      is
      entered into as of June 25, 2005 among PM
      Partners,
      L.P., a Texas limited partnership ("Owner"),
      and
      the
      subsidiaries of U-Haul International, Inc. set forth on the signature page
      hereto (collectively, "Manager").

    RECITALS

    A.
      Owner
      owns the real property and self-storage related improvements thereon identified
      on Exhibit A hereto (hereinafter, collectively the "Property").

    B.
      Owner
      intends that the Property be rented on a space-by-space retail basis to
      corporations, partnerships, individuals and/or other entities for use as
      self-storage facilities.

    C.
      Owner
      desires that Manager manage the Property and Manager desires to act as the
      property manager for the Property, all in accordance with the terms and
      conditions of this Agreement and as more specifically designated on Exhibit
      A
      hereto.

    NOW,
      THEREFORE, in consideration
      of the mutual covenants herein contained, the parties hereto hereby agree as
      follows.

    1. 
      Employment.

    (a)
      Owner
      hereby retains Manager, and Manager agrees to act as manager of the Property
      upon the terms and conditions hereinafter set forth.

    (b)
      Owner
      acknowledges that Manager, and/or Manager affiliates, is in the business of
      managing self-storage facilities and businesses conducted thereat. including,
      but not limited to, the sale of packing supplies and rental of trucks and
      equipment both for its own account and for the account of others. It is hereby
      expressly agreed that notwithstanding this Agreement, Manager and such
      affiliates may continue to engage in such activities, may manage facilities
      other than those presently managed by Manager and its affiliates (whether or
      not
      such other facilities may be in direct or indirect competition with Owner)
      and
      may in the future engage in other business which may compete directly or
      indirectly with activities of Owner.

    (c)
      In
      the performance of its duties under this Agreement, Manager shall occupy
      the position of an independent contractor with respect to Owner.
      Nothing
      contained
      herein shall be
      construed as making the parties hereto (or any of them) partners or joint
venturors,
      nor construed as making Manager an employee of Owner.

    (d)
      Owner
      acknowledges and agrees that, with respect to those properties listed on Exhibit
      A hereto that are located within the State of Texas (collectively, the "Texas
      Properties"), that the Manager will subcontract the management of the Texas
      Properties to Private Mini Storage Manager, Inc., a Texas corporation (the
      "Texas Manager") on the terms and conditions set forth in the Property
      Management Agreement attached hereto as Exhibit C attached hereto.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    2. 
      Duties
      and Authoritv of Manager.

    On
      Owner's behalf, and subject to the terms and conditions of this
      Agreement:

     

    (a) General
      Duties and Authority. Manager
      shall have the sole and exclusive duty and authority to fully manage the
      Property and supervise and direct the business and affairs associated or related
      to the daily operation thereof, to collect on behalf of Owner all revenues
      related to the Property, to pay on behalf of Owner all expenses of the Property
      (including payment of all debt service to the mortgage lender with respect
      to
      the Property and any other debt owed by Owner to any other lender or payee)
      and
      to execute on behalf of Owner such documents and instruments as, in the sole
      judgment of Manager, are reasonably necessary or advisable under the
      circumstances in order to fulfill Manager's duties hereunder. Such duties and
      authority shall include, without limitation, those set forth below.

    (b) Renting
      of the Property. Manager
      shall establish policies and procedures for the marketing activities for the
      Property, and shall advertise the Property through such media as Manager deems
      advisable, including, without limitation, advertising with the Yellow Pages.
      Manager's marketing activities for the Property shall be consistent with the
      scope and quality implemented by Manager and its affiliates at any other
      properties managed by Manager or its affiliates. Manager shall have the sole
      discretion, which discretion shall be exercised in good faith. to establish
      the
      terms and conditions of occupancy by the tenants of the Property, and Manager
      is
      hereby authorized to enter into rental agreements in the ordinary course of
      business on behalf and for the account of Owner (as its agent) with such
      tenants and to collect rent from such tenants on behalf and for the account
      of
      Owner. Manager may jointly advertise the Property with other properties owned
      or
      managed by Manager or its Affiliates, and in that event, Manager shall
      reasonably allocate the cost of such advertising among such
      properties.

    (c)
      Repair, Maintenance and Improvements. Manager shall make,
      execute, supervise and have control over the making and executing of all
      decisions concerning the acquisition of furniture, fixtures and supplies for
      the
      Property, and may purchase lease or otherwise acquire the same on behalf of
      Owner, as its agent. Manager shall make and execute, or supervise and have
      control over the making and executing of all decisions concerning the
      maintenance, repair, and landscaping of the Property, provided, however, that
      such maintenance, repair and landscaping shall be consistent with the
      maintenance, repair and landscaping implemented by Manager and its affiliates
      at
      any other properties managed by Manager or its affiliates. Manager shall, on
      behalf of Owner, negotiate and contract for the installation of all capital
      improvements related to the Property; provided, however, that Manager agrees
      to
      secure the prior written approval of Owner on all such expenditures in excess
      of
      any threshold amounts set forth in any loan documents set forth on Exhibit
      C
      hereto (collectively, "Loan Documents").

    (d)
      Personnel. Manager shall select all vendors, suppliers,
      contractors, subcontractors and employees with respect to the Property and
      shall
      hire, discharge and supervise all labor and employees required for the operation
      and maintenance of the Property. Any employees so hired shall be employees
      of
      Manager, and shall be carried on the payroll of Manager. Employees may include,
      but need not be limited to, on-site resident managers, on-site assistant
      managers, and relief managers located, rendering services, or performing
      activities on the Property in connection with its operation and management.
      The
      cost of employing such persons shall not exceed prevailing rates for comparable
      persons performing the same or similar

    2

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    services
      with respect to real estate similar to the Property in the general vicinity
      of
      each respective Property. Manager shall be responsible for all legal and
      insurance requirements relating to its employees.

    (e)
      Service Agreements. Manager shall negotiate and execute on
      behalf of Owner such agreements which Manager deems necessary or advisable
      for
      the furnishing of utilities, services, concessions and supplies, for the
      maintenance, repair and operation of the Property and such other agreements
      which may benefit the Property or be incidental to the matters for which Manager
      is responsible hereunder.

    (f)
      Other Decisions. Manager shall make the decisions in connection
      with the day-to-day operations of the Property.

    (g)
      Regulations and Permits. Manager shall comply in all respects
      with any

    statute,
      ordinance, law, rule, regulation or order of any governmental or regulatory
      body, having jurisdiction over the Property (collectively, "Laws"), respecting
      the use of the Property or the maintenance or operation thereof. Manager shall
      apply for and obtain and maintain, on behalf of Owner, all licenses and permits
      required or advisable (in the reasonable judgment of Manager) in connection
      with
      the management and operation of the Property. Notwithstanding the foregoing,
      Manager, as agent for Owner, shall be permitted to contest any applicable Laws
      to the extent and pursuant to the same conditions that Owner is permitted to
      contest any Laws under the loan Documents.

    (h)
      Records and Reports of Disbursements and Collections. Manager
      shall establish, supervise, direct and maintain the operation of a system of
      record keeping and bookkeeping with respect to all receipts and disbursements
      in
      connection with the management and operation of the Property. The books, records
      and accounts shall be maintained at the offices of U-Haul International, Inc.
      ("UHI"), or at such other location as Manager shall determine from time to
      time,
      and shall be available and open to examination and audit by Owner its
      representatives, and, subject to the terms of the Loan Documents, any lender
      under any such Loan Documents or such lender's representative. On or before
      sixty (60) days after the close of each quarter, Manager shall cause to be
      prepared and delivered to Owner a statement on a per Property basis, of
      receipts, expenses and charges, together with a statement, on a per-Property
      basis, of the disbursements made by Manager during such period on Owner's
      behalf. Notwithstanding the foregoing, manager, as agent for Owner, shall
      maintain such books and records and furnish such financial reports and operating
      statements to Lender as required of Owner under the Loan Documents.

    (i)
      Collection. Manager shall be responsible for the billing and
      collection of all accounts receivable and for payment of all accounts payable
      with respect to the Property and shall be responsible for establishing policies
      and procedures to minimize the amount of bad debts.

    (j)
      Legal Actions. Manager shall cause to be instituted, on behalf
      and in its name as agent for Owner or in the name of Owner as appropriate,
      any
      and all legal actions or proceedings Manager deems necessary or advisable to
      collect charges, rent or other income due to Owner with respect to the Property
      and to oust or dispossess tenants or other persons

    3

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    unlawfully
      in possession under any lease, license, concession agreement or otherwise,
      and
      to collect damages for breach thereof or default thereunder by such tenant,
      licensee, concessionaire or occupant, subject to any limitations on such actions
      set forth in the Loan Documents.

    (k)
      Insurance.
      Manager
      shall obtain and maintain (or cause to be obtained and maintained) in full
      force
      and effect the insurance with respect to the Property and the operation of
      Owner's and Manager's business operations thereat, and Manager's employees,
      as
      required by Owner and consistent with the Loan Documents.

    (I)
      Taxes.
      To the
      extent not impounded pursuant to the Loan Documents, Manager shall pay on behalf
      of Owner, prior to delinquency, all real estate taxes, personal property taxes,
      and all other taxes assessed to, or levied upon, the Property.

    (m) Limitations
      on ManagerAuthority.
      Notwithstanding anything to the contrary set forth in this Section 2, Manager
      shall not, without obtaining the prior consent of Owner, (i) rent storage space
      in the Property by written lease or agreement for a stated term in excess of
      one
      year unless such lease or agreement is terminable by the giving of not more
      than
      thirty (30) days written notice, (ii) alter the building or other structures
      of
      the Property in violation of the Loan Documents; (iii) make any other agreements
      which exceed a term of one year and are not terminable on thirty (30) day's
      notice at the will of Owner, without penalty, payment or surcharge; (iv) act
      in
      violation of any Law, or (v) operate or manage the Properties in any manner
      which will violate any term or condition or the Loan Documents.

    (n)
      Shared
      Expenses.
      Owner
      acknowledges that certain economies may be achieved with respect to certain
      expenses to be incurred by Manager on behalf of Owner hereunder if materials,
      supplies, insurance or services are purchased by Manager in quantity for use
      not
      only in connection with Owner's business at the Property but in connection
      with
      other properties owned or managed by Manager or its affiliates. Manager shall
      have the right to purchase such materials, supplies, insurance and/or services
      in its own name and charge Owner a pro rata allocable share of the cost of
      the
      foregoing for such materials, supplies, insurance or services received by Owner;
      provided, however, that the pro rata cost of such purchase to Owner shall not
      result in expenses that are either materially greater than the expenses of
      other
      "U-Haul branded" locations in the general vicinity of the applicable Property
      or
      greater than would otherwise be included at competitive prices and terms
      available in the area where the Property is located; and provided further,
      Manager shall give Owner and lender under the Loan Documents ("Lenders") access
      to records (at no cost to Owner or Lender) so Owner and Lender may review any
      such expenses incurred.

    (0)
      Deposit
      of Gross Revenues.
      All
      Gross Revenue (as hereinafter defined) shall be deposited by Manager unto bank
      accounts at local depository institutions and thereafter may be swept by UHI
      into a UHI concentration account. Manager shall assure that Owner's funds are
      tracked and segregated electronically from other UHI funds on a property by
      property basis. Any such funds of the Owner in the UHI concentration account
      shall be used solely to pay costs and expenses of the Properties as contemplated
      by this Agreement and shall otherwise be for the benefit of the Properties
      and
      Owner. No funds of Owner contained in the UHI concentration account may be
      used
      for the benefit of any property or person (including, without limitation, UHI
      and Manager) other than Owner and the Properties. Subject to the terms
      and

    4

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    conditions
      of the Loan Documents, Gross Revenue of the Owner shall be applied first to
      the
      repayment of Owner's senior mortgage debt with respect to the Property and
      other
      requirements of Owner's senior mortgage loan agreements, and then to Manager
      in
      reimbursement of expenses and for management fees as provided under Section
      4
      below.

    (p)
      Obligations
      under Loan Documents and other Material Contracts. Manager
      shall take such actions as are necessary or appropriate under the circumstances
      to ensure that Owner is in compliance with the terms of the Loan Documents
      and
      any other material agreement relating to the Property to which Owner is a party.
      Nothing herein contained shall be deemed to obligate Manager to fund from its
      own resources any payments owed by Owner under the Loan Documents or otherwise
      be deemed to make Manager a direct obligor under the Loan Documents or other
      material contract of Owner.

    (q)
      Management
      Standard.
      Manager
      shall perform all of its obligations under this Agreement in a professional
      manner consistent with the standards it employs at all of its managed locations
      and in any event, consistent with the standard set forth in the Loan
      Documents.

    

    

          3.  
Duties
      of
      Owner. 
      Owner
      shall cooperate with Manager in the performance of Manager's duties under this
      Agreement and to that end, upon the request or Manager, to provide reasonable
      office space fix Manager employees on the premises of the Property (to the
      extent available) and to give Manager access to all files, books and records
      of
      Owner relevant to the Property. Owner shall not unreasonably withhold or delay
      any consent or authorization to Manager required or appropriate under this
      Agreement, subject to the conditions or the Loan Documents.

    4. Compensation
      of Manager.

    (a)
      Reimbursement of Expenses. Manager shall be entitled to
      reimbursement, on a monthly basis, for all out-of-pocket reasonable and
      customary expenses actually incurred by Manager in the discharge of its duties
      hereunder, including, without limitation, all expenses incurred on Owner's
      behalf pursuant to Section 2 of this Agreement, including the cost to Manager
      of
      the personnel pursuant to Section 2( d). Such expense reimbursement shall be
      the
      obligation of Owner, whether or not Gross Revenues are sufficient to pay such
      amounts.

    (b)
      Management Fee. Owner shall pay to Manager as the full amount
      due for the services herein provided a monthly fee (the "Management Fee") which
      shall be five percent (5%) of the Property's trailing twelve month Gross Revenue
      divided by twelve (12) ("Base Fee"), plus an annual incentive fee (the
      "Incentive Fee") based upon the performance of the Property as set forth on
      Exhibit B hereto. For purposes of this Agreement, the term "Gross Revenue"
      shall
      mean all receipts (excluding security deposits unless and until Owner recognizes
      the same as income) of Manager or Owner (whether or not received by Manager
      on
      behalf or for the account of Owner) arising from the operation of Owner's
      business at the Property, including without limitation, rental payments of
      self-storage customers at the Property, vending machine or concessionaire
      revenues, maintenance charges, if any, paid by the tenants of the Property
      in
      addition to basic rent and parking fees, if any. Gross Revenue shall be
      determined on a cash

    5

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    

    basis.
      The Management Fee shall be paid promptly, in arrears within thirty (30) days
      of
      the end of each month.

    Except
      as
      provided in this Section 4, it is further understood and agreed that Manager
      shall not be entitled to additional compensation of any kind in connection
      with
      the performance by it of its duties under this Agreement.

     

    (c)
      Inspection
      of Books and Records.
      Owner
      shall have the right, upon prior reasonable notice to Manager, to inspect
      Manager's books and records with respect to the Property, to assure that proper
      fees and charges are assessed hereunder. Manager shall cooperate with any such
      inspection. Owner shall bear the cost of any such inspection; provided, however,
      that if it is ascertained that Manager has overcharged Owner by more than 5%
      in
      any given quarter, the cost of such inspection shall be borne by Manager.
      Manager shall promptly reimburse Owner for any overpayment.

    5. 
      Use
      of
      Trademarks, Service Marks and Related Items.

    (a)
      GJR
      Investments, Inc. ("GJR") hereby grants Manager, as its agent, the non-exclusive
      right to operate the Property under the name and flag of "Private Mini Storage"
      or any derivation thereof (collectively, "Private Mini"). Accordingly, in
      executing its duties hereunder, Manager shall have the non-exclusive right
      to
      use Private Mini signage, stationary, uniforms and the like as well as any
      name,
      mark, slogan, caricature, design or other trade or service mark incident to
      the
      foregoing. It is further understood and agreed that the Private Mini name and
      all such marks, slogans, caricatures, designs and other trade or service items
      shall remain and be at all times the sole and exclusive property of GJR, and
      that except as expressly provided in this Agreement, Manager shall have no
      right
      whatsoever therein.

     

    GJR
      has
      granted and may grant others the right to use Private Mini. Except as set forth
      herein, Manager acknowledges that GJR has the sole and exclusive right to
      license Private Mini. Manager further agrees that all use of Private Mini by
      Manager shall inure to the benefit of Private Mini. As between GJR and Manager,
      all rights not specifically granted to Manager are reserved to GJR. Manager
      shall cooperate with GJR, at GJR's expense in the execution, filing, and
      prosecution of any trademark or trade name applications that GJR may desire
      to
      file, and for that purpose Manager will supply to GJR, upon GJR 's written
      request and at GJR 's expense, such information as may be reasonably required.
      Manager shall inform GJR forthwith if Manager learns of any adoption, use,
      or
      registration of any trademark, trade name, or corporate name that could infringe
      or impair or tend to impair GJR's rights in Private Mini. Manager shall provide
      complete information and assistance to GJR concerning such infringements. Upon
      learning of such infringements, GJR shall be entitled, at its sole discretion
      and expense, to take such action, if any as GJR considers necessary or
      appropriate to enforce its rights, including without limitation, action to
      suppress or eliminate the infringements. Manager shall cooperate with GJR,
      and
      its attorneys and other authorized representatives, at GJR's expense, in any
      investigation or legal proceedings or action which GJR may deem desirable to
      protect its rights in Private Mini. Manager shall use commercially reasonable
      efforts to include the trademark notice on all product and other materials
      bearing any of Private Mini's trademarks, service marks or other protected
      logo.

    6

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b)
      Notwithstanding the foregoing, Owner has the right, at Owner's sole cost and
      expense, to require that Manager operate the Property under the name and flag
      of
      U-Haul®. In the event Manager (or UHI) requires that the Properties (or any of
      them) be operated under the U-Haul ® name and flag, such conversion shall be at
      UHI's sole cost and expense. In such event, Owner acknowledges and agrees that
      the name, trademark and service mark "U-Haul", and related marks, slogans,
      caricatures, designs and other trade or service items (the "Manager
      Trade Marks") shall
      be
      utilized for the non-exclusive benefit of Owner in the rental and operation
      of
      the Property, and in comparable operations elsewhere. It is further understood
      and agreed that the name and all such marks, slogans, caricatures, designs
      and
      other trade or service items shall remain and be at all times the property
      of
      Manager and its affiliates, and that except as expressly provided in this
      Agreement, Owner shall have no right whatsoever therein. At the election and
      sale cost of Owner, Owner shall have the right to require Manager to convert
      the
      sign faces, stationary, uniforms and the like at the Property to the name
      "U-Haul." Upon
      termination of this Agreement at any time for any reason, all such use by and
      for the benefit of Owner of any such name, mark, slogan, caricature, design
      or
      other trade or service item in connection with the Property shall be terminated
      and any signs bearing any of the foregoing shall be removed from view and no
      longer used by Owner. It is understood and agreed that Manager will use and
      shall be unrestricted in its use of the U-Haul® name, mark, slogan caricature,
      design or other trade or service item in the management and operation of other
      storage facilities both during and after the expiration or termination of the
      term of this Agreement.

    6.
      Default
      Termination.

    (a)
      Any
      material failure by Manager or Owner (a “Defaulting
      Party”) to
      perform its duties or obligations hereunder (other than a default by Owner
      under
      Section 4 of this Agreement), which material failure is not cured within thirty
      (30) calendar days after receipt of written notice of such failure from the
      non-defaulting party, shall constitute an event of default hereunder; provided,
      howcver, the foregoing shall not constitute an event of default hereunder in
      the
      event the Defaulting Party commences cure of such material failure within such
      thirty (30) day period and diligently prosecutes the cure of such material
      failure thereafter but in no event shall such extended cure period exceed ninety
      (90) days from the date of receipt by the non-defaulting party of written notice
      of such material default; provided further, however that in the event such
      material failure constitutes a default under the terms of the Loan Documents
      and
      the cure period for such matter under the Loan Documents is shorter than the
      cure period specified herein, the cure period specified herein shall
      automatically shorten such that it shall match the cure period for such matter
      as specified under the Loan Documents. In addition, following notice to Manager
      of the existence of any such material failure by Manager, Owner and Lender
      shall
      each have the right to cure any such material failure by Manager, and any sums
      so expended in curing shall be owed by Manager to such curing party and may
      be
      offset against any sums owed to Manager under this Agreement.

    (b)
      Any
      material failure by Owner to perform its duties or obligations under Section
      4,
      which material failure is not cured within thirty (30) calendar days after
      receipt of written notice of such failure from Manager, shall constitute an
      event of default hereunder.

    (c)
      Upon
      an event of default hereunder, the non-defaulting party shall have the right
      to
      terminate this Agreement upon notice to the defaulting party.

    7

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (d)
      In
      addition to the foregoing, Manager shall have the right to terminate this
      Agreement, with or without cause, by giving not less than ninety (90) days'
      written notice to Owner pursuant to Section 14 hereof.

    (e)
      Upon
      termination of this Agreement, (x) Manager shall promptly return to Owner all
      monies, books, records and other materials held by Manager for or on behalf
      of
      Owner and shall otherwise cooperate with Owner to promote and ensure a smooth
      transition to the new manager and (y) Manager shall be entitled to receive
      its
      Management Fee and reimbursement of expenses through the effective date of
      such
      termination, including the reimbursement of any prepaid expenses for periods
      beyond the date of termination (such as Yellow Pages advertising).

    (f)
      Notwithstanding any provision of this Section 6 to the contrary, Manager shall
      not cease managing the Property until such time as a replacement property
      manager consistent with the requirements of the Loan Documents commences
      managing the Property.

    7. 
      Indemnification.
      To
      the
      fullest extent permissible under applicable law, Manager agrees to indemnify,
      defend, protect and hold the Owner harmless from any and all costs, expenses
      attorneys' fees, suits, liabilities, judgments, damages and claims in connection
      with the operation of
      the
      Property arising from the willful misconduct or negligence of Manager or any
      of
      Manager's affiliates or the breach by Manager of any term or provision of this
      Agreement.

     

    To
      the
      fullest extent permissible under applicable law, Owner agrees to indemnify,
      defend, protect and hold the Manager, its agents and employees harmless from
      any
      and all costs, expenses, attorneys' fees, suits, liabilities, judgments, damages
      and claims in connection with the operation of the Property arising from the
      willful misconduct or negligence of Owner or Owner's agents or employees.
      Owner's liability is expressly limited to actions arising out of affirmative
      acts by Owner, or Owner's agents, employees or contractors in connection with
      the operation, construction and development of the Property, any building
      defects associated with the Property, and any environmental problems of the
      Property arising prior to the date hereof.

     

    Notwithstanding
      the foregoing or any other provision of this Agreement, Owner hereby releases
      Manager from liability for and agrees to indemnify and hold harmless Manager,
      its
      agents and employees with respect to any and all claims, liability, costs and
      expenses of

    Manager,
      its agents and employees may incur in connection with the actions taken in
      the
      performance of their duties pursuant to the provisions of this Agreement,
      provided such action(s) is not unreasonably inconsistent with Manager's
      management policies with respect to other self-storage facilities it manages
      and
      is taken in good faith and in a manner reasonably believed to be in compliance
      with the terms of this Agreement and in the best interest of Owner; and provided
      further, that Owner shall have no obligation to indemnify Manager or any person
      for Manager's or any person's negligence or fraudulent actions.

    8

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    8. 
      Assignment.
      Manager
      shall not assign this Agreement to any party without the consent of Owner,
      which consent shall not be unreasonably withheld; provided however, Manager
      shall have the right to assign this Agreement, or any portion thereof and any
      duties hereunder to any UHI affiliated entity or Private Mini Storage Manager,
      Inc., or its affiliates. Notwithstanding anything to the contrary contained
      herein, Manager shall not assign this Agreement except in accordance with,
      and
      consistent with, the terms and conditions of the Loan Documents.

     

    9. 
      Standard
      for Property Manager’s Responsibility. Manager
      shall perform its obligations hereunder according to industry standards, in
      good
      faith, and in a commercially reasonable manner.

     

    10. 
      Estoppel
      Certificate. Each
      of
      Owner and Manager agree to execute and deliver to one another, from time to
      time, within ten (10) business days of the requesting party's written request,
      a
      statement in writing certifying, to the extent true, that this Agreement is
      in
      full force and effect, and acknowledging that there are not, to such parties
      knowledge, any uncured defaults or specifying such defaults if they are claimed
      and any such other matters as may be reasonably requested by such requesting
      party.

     

    11.
      Term;
      Scope.

    Subject
      to earlier termination as provided in this Agreement, this Agreement shall
      have
      an initial term of ten years, provided however the Manager shall have the right
      to terminate this Agreement as to any individual Property at such time as the
      Loan Documents have terminated in accordance with the terms of the Loan
      Documents (for instance due to a significant casualty or condemnation) with
      respect to such individual Property.

     

    12. 
      Headings.
      The
      headings contained herein are for convenience of reference only and are not
      intended to define, limit or describe the scope or intent or any provision
      of
      this Agreement.

     

    13. 
      Governing
      Law. The
      validity of this Agreement, the construction of its terms and the interpretation
      of the rights and duties of the parties shall be governed by the internal laws
      of the State of Nevada.

     

    14. 
      Notices.
      Any
      notice required or permitted herein shall be in writing and shall be personally
      delivered or mailed first class postage prepaid or delivered by an overnight
      delivery service to the respective addresses of the parties set forth above
      on
      the first page of this Agreement, or to such other address as any party may
      give
      to the other in writing. Any notice required by this Agreement will be deemed
      to
      have been given when personally served or one day after delivery to an overnight
      delivery service or five days after deposit in the first class mail. Any notice
      to Owner shall be to the attention of Five SAC Self Storage Corporation, 715
      South Country Club

    9

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Drive,
      Mesa, AZ 85210, Attn: President and GJR Investments, Inc., 10575 Westoftice
      Drive, Houston. Texas 77042, Attn.: Doug Mulvaney. Any notice to Manager shall
      be to the attention of c/oU-Haul
      International, Inc. Legal Department, 2721 North Central Avenue, Phoenix, AZ
      85004, Attn: Jennifer M. Settles.

     

    15. 
      Severability.
      Should
      any term or provision hereof be deemed invalid, void or unenforceable either
      in
      its entirety or in a particular application, the remainder of this Agreement
      shall nonetheless remain in full force and effect and, if the subject term
      or
      provision is deemed to be invalid, void or unenforceable only with respect
      to a
      particular application, such term or provision shall remain in full force and
      effect with respect to all other applications.

     

    16. 
      Successors.
      This
      Agreement shall be binding upon and inure to the benefit of the respective
      parties hereto and their permitted assigns and successors in
      interest.

     

    17.
      Attorneys'
      Fees. If
      it
      shall become necessary for any party hereto to engage attorneys to institute
      legal action for the purpose of enforcing their respective rights hereunder
      or
      for the purpose of defending legal action brought by the other party hereto,
      the
      party or parties prevailing in such litigation shall be entitled to receive
      all
      costs, expenses and fees (including reasonable attorneys' fees) incurred by
      it
      in such litigation (including appeals).

     

    18.
      Counterparts.

    This
      Agreement may be executed in one or more counterparts, each of which
      shall

    be
      deemed
      an original, but all of which together shall constitute one and the same
      instrument.

    10

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the
      undersigned execute
      this
      Agreement as of the date
      set
      forth
      above.

    Owner:

     

    PM
      Partners,
      LP.,
      a
      Texas                            

    Limited
      Partnership

      

    By:
      Mini
      Partners, Inc.,                              
      GJR Investments, Inc., joins as to Section 5(a)                        
      a
        Texas
        corporation, its General Partner 

      By:_________                                By:
        __________

      Its:
        _________                                Its:
        __________               

       

       

      Manager:

      U-Haul
        Co. of South Carolina, Inc.,

      a
        South Carolina corporation

      By:___________

      Its:___________

       

      U-Haul
        Co. of North Carolina, Inc.

      a
        North Carolina Corporation

      By:___________

      Its:___________

       

      U-Haul
        Co. of Florida, Inc.,

      a
        Florida Corporation

      By:___________

      Its:___________

       

      U-Haul
        Co. of Georgia, Inc.,

      a
        Georgia corporation

      By:___________

      Its:___________

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

       

      U-Haul
        Co. of Alabama, Inc.,

      an
        Alabama corporation

      By:____________

      Its:____________

       

      U-Haul
        Co. of Texas, Inc.,

      a
        Texas corporation

      By:____________

      Its:_____________

       

       

       

       

    

    
      	
              103rd

            	
              7052
                103rd
                Street

            	
              Jacksonvilee

            	
              Florida

            
	
              Castle
                Hills

            	
              1951
                NW Loop410

            	
              San
                Antonio

            	
              Texas

            
	
              Central
                Expressway

            	
              13637
                N. C. Expressway

            	
              Dallas

            	
              Texas

            
	
              Cutten

            	
              7022
                FM 1960 West

            	
              Houston

            	
              Texas

            
	
              Eastlake

            	
              3182
                Curlew Blvd

            	
              Oldsmar

            	
              Florida

            
	
               

            	
               

            	
              Columbia

            	
              South

            
	 Elmwood	
              
                1037
                  Elmwood Avenue

              

            	
              Carolina

            
	
              Florida
                Avenue

            	
              9505
                N Florida Ave

            	
              Tampa

            	
              Florida

            
	
              Fountainview

            	
              6040
                Westpark

            	
              Houston

            	
              Texas

            
	
              Highway
                620

            	
              11320
                Highway 620 North

            	
              Austin

            	
              Texas

            
	
              Huntsville

            	
              4440
                University Drive

            	
              Huntsville

            	
              Alabama

            
	
              La
                Marque

            	
              4701
                Gulf Freeway

            	
              LaMarque

            	
              Texas

            
	 	 	 	
              North

            
	
              Lancaster

            	
              13401
                Lancaster Highway

            	
              Pineville

            	
              Carolina

            
	
              League
                City

            	
              2500
                W. Main Street

            	
              League
                City

            	
              Texas

            
	
              Melbourne

            	
              376
                N. Harbor City Blvd.

            	
              Melbourne

            	
              Florida

            
	
              Monroe

            	
              1580
                North Monroe Street

            	
              Tallahassee

            	
              Florida

            
	
              Mountainbrook

            	
              3195
                Highway 280 East

            	
              Birmingham

            	
              Alabama

            
	
              Nesbit
                Ferry

            	
              2810
                Holcomb Bridge Rd

            	
              Alpharetta

            	
              Georgia

            
	
              Palm
                Harbor

            	
              30722
                US Highway 19

            	
              Palm
                Harbor

            	
              Florida

            
	 	 	 	
              North

            
	
              Safe
                Harbor

            	
              9208
                Westmoreland Rd

            	
              Cornelius

            	
              Carolina

            
	
              Walsingham

            	
              13240
                Walsingham

            	
              Largo
                (Tampa)

            	
              Florida

            
	
              Westbelt

            	
              10515
                S.W. Freeway

            	
              Houston

            	
              Texas

            
	
              Westbelt
                RV (All Star RV)

            	
              1065
                SW Plaza Court

            	
              Houston

            	
              Texas

            
	
              Wycliffe

            	
              11010
                Old Katy Road

            	
              Houston

            	
              Texas

            

    

    

    

    12

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    Management
      Fee Incentives

    The
      following Incentive Fee shall be calculated and, if and to the extent earned,
      paid, annually after the end of each fiscal year of Owner:

     

    In
      the
      event that net operating income of the Property equals or exceeds 110% (but
      less
      than 120%) of principal and interest under all Loan Documents ("P&I") for
      the prior fiscal year being calculated, the Incentive Fee for such year shall
      be 1 % of the Property's Gross Revenue for such fiscal year.

     

    In
      the
      event that net operating income of the Property equals or exceeds 120% (but
      less
      than 130%) of P&I for the prior fiscal year being calculated, the Incentive
      Fee for such year shall be 2% of the Property's Gross Revenue for such
      year.

     

    In
      the
      event that net operating income of the Property equals or exceeds 130%) (but
      less than 140%) of P&I for the prior fiscal year being calculated, the
      Incentive Fee for such year shall be 3% of the Property's Gross Revenue for
      such
      fiscal year.

     

    In
      the
      event that net operating income of the Property equals or exceeds 140% (but
      less
      than 150%) of P&I for the prior fiscal year being calculated, the Incentive
      Fee for such year shall be 4% of the Property's Gross Revenue for such fiscal
      year.

     

    In
      the
      event that net operating income of the Property equals or exceeds 150% of
      P&I for the prior fiscal year being calculated the Incentive Fee for such
      year shall be 6% of the Property's Gross Revenue for such fiscal
      year

    13

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      C

    Sub-Management
      Agreement for Texas Properties

     

     

     

     

    14

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    Friday,
      August 12,
      2005
9:36:39
      AM Page 1 of 2

    Printed
      by: Jennifer Settles Title: RE: submanagement agreement: uhaul

    From:

    Friday,
      August 12, 20059:18:51 AM Message

    <dlm@private-mini.com>

    Subject
      To:

    RE:
      submanagement agreement

    Jennifer
      Settles

    Cc:

    "Walter
      Pennington" <wep@private-minicom> dennis-
      o'connor@fc.uhaui.com

    Attachments:

    AttachO.
      html

    We
      managed the Texas properties through Thursday, August 4, 2005.
      Our
      submanagement agreement
      terminated that day, subject to only the payment of the management fees that
      we
      earned through that day. Walter Pennington has provided Dennis with a detail
      of
      those fees for his approval. We would appreciate prompt payment since our cash
      is tight. Thank you.

    Doug
      Mulvaney Private Mini Storage 10575 Westoffice Drive Houston, Tx 77042
      713-706-4531 - Office 7 J 3-628- 7640 - Cell

    7
      13-827-07 ! 0 - Fax

    Original
      Message-----

    From:
      Jennifer Settles rmailto:jennifer
      settles@uhaul.coml Sent:
      Friday, August 12, 2005 10:49 AM

    To:
      dlm@Drivate-minLcom

    Subject:
      submanagement agreement

    Doug
      -
      Can you
      please send me a quick email confirmation acknowledging the agreement of Private
      Mini Storage Manager, Inc. that the submanagement agreement for the Texas
      properties was terminated, and the effective date of such termination. Thanks.
      I
      just need to have this for my files. Jennifer

    Jennifer
      M. Settles U-Haullnternational, Inc, 2727 North Central Avenue Phoenix, AZ
      85004

    Ph.
      (602)
      263-6788 Fax (602) 263-6173

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      D

    Loan
      Documents

    For
      purposes of this Agreement, "Loan Documents" shall mean,
      collectively:

     

    -Loan
      Agreement between Owner and GMAC Commercial Mortgage Corporation dated on or
      about the date hereof, and all Loan Documents as defined therein, including
      without limitation the Lockbox Deposit Account Control Agreement.

     

    -
      The
      mezzanine loans made by the parent entities of Owner, in favor of GMAC
      Commercial Mortgage Corporation on or about the date hereof.

     

    -Promissory
      note made by Private Mini Storage Realty, L.P. to the order of AMERCO, dated
      on
      or about the date hereof, in the original face amount of approximately
      $55,500,000.

    15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]