Document:

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                                                                   EXHIBIT 10.34

                   FOURTH AMENDMENT AND FORBEARANCE AGREEMENT

         THIS FOURTH AMENDMENT AND FORBEARANCE AGREEMENT (this "Agreement"),
dated and effective the 31/st/ day of July, 2002 (the "Effective Date"), by and
among SPEIZMAN INDUSTRIES, INC., a Delaware company ("Speizman"), SPEIZMAN YARN
EQUIPMENT, INC., a South Carolina company ("Speizman Yarn"), WINK DAVIS
EQUIPMENT COMPANY, INC., a Georgia company ("Wink Davis"), TODD MOTION CONTROLS,
INC., a North Carolina company ("Todd Motion" and together with Speizman,
Speizman Yarn, Wink Davis and any future or indirect subsidiaries of Speizman or
of any other entities listed above, the "Borrowers"), jointly and severally and
their respective successors and assigns, and SOUTHTRUST BANK ("Lender").

                               R E C I T A L S :

         WHEREAS, the Borrowers above entered into that certain Credit Facility
Agreement, dated as of May 31, 2000 (the "Credit Agreement") with Lender for the
purpose of establishing a $17,500,000 Revolving Credit Facility and a
$15,000,000 Letter of Credit Facility with the Lender in favor of the Borrowers
(collectively, with all other obligations owed by Borrowers to SouthTrust, the
"Obligations") (all terms not otherwise defined herein shall have the meaning
ascribed to it in the Credit Agreement); and

         WHEREAS, the parties amended the Credit Agreement pursuant to that
certain Amendment and Forbearance Agreement dated as of the 13/th/ day of
November, 2000 (the "First Amendment") which was superseded by the Second
Amendment as hereinafter defined; and

         WHEREAS, the parties amended the Credit Agreement pursuant to that
certain Second Amendment and Forbearance Agreement dated July 1, 2001 (the
"Second Amendment"); and

         WHEREAS, the parties amended the Credit Agreement pursuant to that
certain Third Amendment and Forbearance Agreement dated February 19, 2002 (the
"Third Amendment"); (the Credit Agreement, Second Amendment, and Third Amendment
are collectively the "Credit Agreements"); and

         WHEREAS, the Borrowers have requested the Lender to temporarily modify
certain terms of the Credit Agreement and to forbear from taking remedial
actions as a result of their non-compliance with certain covenants and
warranties in the Credit Agreement (the "Existing Noncompliance") and to extend
the Forbearance Period as set forth in the Third Amendment; and

         WHEREAS, the Lender is willing to accommodate the Borrowers under the
terms set forth in this Agreement; and

         WHEREAS, the Lender is willing to grant the forbearance requested by
the Borrowers, but only upon the terms and conditions set forth in this
Agreement.

         NOW, THEREFORE, the Borrowers and the Lender agree as follows:

<PAGE>

         1.  Borrowers acknowledge and agree that the foregoing recitals are
true, correct, and complete.

         2.  "Existing Noncompliance": Borrowers acknowledge that as of the date
hereof, they are not in compliance with Sections 10.16, 10.17, 10.18 and 10.19
of the Credit Agreement and as set forth in Sections 4.01(a), (c) and (d) of the
Second Amendment. As a result, the Lender could declare an event of default
under the Credit Agreement and exercise its rights and remedies thereunder and
under the related Loan Documents.

         3.  Except as expressly set forth herein, the terms and conditions of
the Credit Agreements remain in full force and effect. This Agreement shall be a
Loan Document.

         4.  Lender agrees that, in respect of the Existing Noncompliance,
during the Forbearance Period (as defined below), Lender will not enforce or
exercise any remedies available to it under the Loan Documents, and will not
seek collection of the Loans from the Borrowers, except as set forth herein. As
used herein, the term "Forbearance Period" means the period of time commencing
on as of the date of this Agreement and ending on December 31, 2002, subject to
an earlier termination of the Forbearance Period as provided in Section 6 below.

         5.  Interest shall continue to accrue on the principal of the Loans, as
set forth in the Credit Agreement, as amended, until such principal is paid in
full. During the Forbearance Period, Borrowers shall make all payments in
accordance with the payment terms set forth in the respective Loan Documents.

         6.  Notwithstanding the provisions of Section 2 above, the Forbearance
Period shall automatically terminate without further notice to the Borrowers or
any other person (all notice otherwise required by the Loan Documents or
otherwise being hereby waived) if (i) any case or other proceeding is instituted
by or against Borrowers under any state or federal law relating to the
bankruptcy or insolvency of debtors, including, without limitation, the United
States Bankruptcy Code, 11 U.S.C. (S) 101 et seq.; (ii) any "Event of Default"
(as defined in the Loan Documents) occurs under any of the Loan Documents other
than the Existing Noncompliance; (iii) any of the acknowledgments, warranties,
or representations of Borrowers set forth herein shall be untrue or inaccurate
in any material respect as of the date made; or (iv) Borrowers breach, default,
or failure to perform any other obligation or agreement contained in this
Agreement in a material way arising to an Event of Default under the Loan
Documents, including, without limitation, the failure to meet its EBITDA
projections as set forth in more detail in paragraph 9.

         7.  During the Forbearance Period, SouthTrust can require Borrowers, at
Borrowers' sole expense, to hire an independent outside consulting firm to
assist Borrowers with financial reporting, soliciting alternative financing
opportunities, and seeking potential investors and/or purchasers. SouthTrust
shall notify Borrowers in writing of such request. Borrowers will thereafter
notify SouthTrust in writing of the name and address of the consultant that
Borrowers intends to hire.

         8.  The Credit Agreement, as amended, is hereby amended as follows:

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             (a)  Section 3.1 of the Credit Agreement is amended to increase the
                  maximum principal face amount of Documentary Letters of Credit
                  by $2,000,000 to $6,000,000.

             (b)  Lender will permit no over-advancements under the Revolving
                  Credit Loan.  Any Over-Advance Condition shall be an immediate
                  Event of Default hereunder.

             (c)  The percentage of Eligible Accounts used to determine, and as
                  stated in the definition of "Borrowing Base Amount" remains
                  80%.

             (d)  The Borrowing Base Certificate attached as Exhibit B to the
                  Second Amendment shall continue to be used by the Borrowers
                  with the amended percentage of Eligible Accounts set forth
                  above.

         9.  In addition to the reports required under Section 10.1 of the
Credit Agreement, as amended by the Second Amendment, the Borrowers will provide
within 20 days after the end of each month, all financial information and
reporting currently required under the Credit Agreement on a quarterly basis,
including EBITDA calculations, on a monthly basis with financial information for
the immediately proceeding month.

         10. Borrowers have provided Lender month-end EBITDA projections for all
months covered by the Forbearance Agreement (the "EBITDA Projections"). A copy
of the EBITDA Projections are attached hereto as Exhibit A. It shall constitute
an Event of Default hereunder, and cause the termination of this Agreement, if
the actual EBITDA numbers for any one month do not fall within a variance of
$100,000 of the EBITDA Projections for that month.

         11. The Lender shall have no further obligation to provide additional
financing to the Borrowers except as set forth under the Loan Documents or
herein. Nothing contained herein shall constitute a commitment or guarantee by
Lender to extend any future financing to Borrowers, except as set forth in the
Loan Documents.

         12. Borrowers acknowledge and agree that (i) this Agreement is not
intended to be, and shall not be deemed or construed to be, a novation or
release of the Loan Documents or any of them; (ii) except as expressly provided
in this Agreement, this Agreement is not intended to be, and shall not be deemed
or construed to be, a modification, amendment, or waiver of the Loan Documents
or any of them; (iii) neither this Agreement nor any payments made or other
actions taken pursuant to this Agreement shall be deemed to cure the Existing
Noncompliance unless and until all sums payable with respect thereto pursuant to
the Loan Documents are paid in full or Borrowers shall have met the conditions
of this Agreement with respect thereto; (iv) except as otherwise expressly
provided in this Agreement, Lender reserves all available rights and remedies,
at law, in equity, and under the Loan Documents, in connection with any Event of
Default, including the Existing Noncompliance, whether now existing or hereafter
occurring, under the Loan Documents; and (v) all requirements in the Loan
Documents for notice by Lender to the Borrowers, or any of them, are hereby
waived, except as set forth herein.

         13. Borrowers ratify and confirm all terms and conditions of the Loan
Documents (as amended hereby). Borrowers acknowledge that: (i) all the Loan
Documents are in full force and

                                       3

<PAGE>

effect, and (ii) the Loan Documents constitute the legal, valid and binding
obligations of Borrowers enforceable against Borrowers in accordance with their
terms. Borrowers represent and warrant to Lender that as of the date hereof,
Borrowers have no defenses, setoffs, rights of recoupment, counterclaims or
claims of any nature whatsoever in respect to the Loan Documents, and to the
extent any such defenses, setoffs, rights of recoupment, counterclaims or claims
may exist, whether known or unknown, the same are hereby expressly waived,
released and discharged. Borrowers represents and warrants to Lender that the
Loans continue to be secured by the Loan Documents, and that except with respect
to the Existing Noncompliance, no Event of Default has occurred and is
continuing under the Loan Documents, and no event has occurred or failed to
occur that, with the lapse of time, giving of notice or both, would constitute
an Event of Default under the Loan Documents.

         14. Borrowers, in consideration of Lender's agreement to forebear and
modify the Agreements as set forth above and herein, and as a material
inducement therefore, does hereby release, remise and forever discharge Lender
and its affiliates, parents, divisions, subsidiaries, successors, predecessors,
stockholders, officers, directors, agents, employees, attorneys, successors, and
assigns (Lender and such other parties being collectively referred to herein as
the "Released Parties") of and from any and all claims, liabilities, actions,
and causes of action, if any, of whatever kind or nature, whether known or
unknown, those that are contingent, suspected, or unsuspected, and whether
concealed or hidden, which have existed, arising out of or in any way connected
with any occurrences, acts, omissions, or transactions involving, directly or
indirectly, the Loan Documents, or any of the Obligations, or any other
transactions and dealings between the Borrower.

         15. Borrowers further acknowledge and agree that all of the Loan
Documents will continue to secure all of the Obligations, and Borrowers have
heretofore and do hereby waive any right for a marshaling of any Collateral now
or hereafter subject to the liens and security interests of the Loan Documents.

         16. In recognition of Lender's right to have all its attorneys' fees
and other expenses incurred in connection with the preparation, negotiations and
drafting of this Agreement secured by the Collateral, notwithstanding payment in
full of all Obligations by Borrowers, Lender shall not be required to record any
terminations or satisfactions of any of its liens on the Collateral unless and
until Borrowers has executed and delivered to Lender releases of all claims,
known and unknown which exist as of the date thereof. Borrowers understand that
this provision constitutes a waiver of its rights under (S) 7-9A-513 of the
Alabama Code.

         17. Borrowers acknowledge and agree that, if Lender shall, pursuant to
the rights granted to Lender hereunder, under the Loan Documents, or under
applicable law, dispose of any or all of the Collateral after the occurrence of
an Event of Default, such disposition shall be deemed commercially reasonable
if, in the written opinion of three (3) commercial loan officers outside of
Lender with experience in the textile machine and laundry equipment industry
with three (3) years of experience each, the manner of the disposition is not
inconsistent with the manner in which such commercial loan officers would have
handled the disposition.

         18. Borrowers represent and warrant to Lender that: (i) Borrowers are,
respectively, corporations organized, validly existing and in good standing
under the laws of the State set forth

                                       4

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above and have full power and authority to execute, deliver and perform this
Agreement and the other Loan Documents, and the same have been duly authorized
pursuant to all requisite corporate action; (ii) this Agreement and the other
Loan Documents constitute valid and legally binding obligations of the
Borrowers, enforceable in accordance with their respective terms, except as
enforceability may be limited by bankruptcy, insolvency or similar laws
affecting the enforcement of creditors' rights generally, and general principles
of equity; (iii) the execution, delivery and performance by the Borrowers of
this Agreement and the other Loan Documents, will not and did not, violate,
conflict with, or constitute any default under any law (including laws relating
to usury), government regulation, or any other agreement or instrument binding
upon the Borrowers; and (iv) no approval, authorization or other action by, or
filing with, any governmental official, board or authority is required in
connection with the execution and delivery of this Agreement or any of the other
Loan Documents, and the performance of the provisions thereof, except such
approvals and authorizations as have been received, such actions as have been
taken, and such filings as have been made.

         19. This Agreement shall be construed in accordance with, and shall in
all respects be governed by, the laws of the State of North Carolina. The Loans
owing under the Loan Documents are payable to Lender by Borrowers at Lender's
principal place of business in Birmingham, Jefferson County, Alabama, and the
Loan Documents and this Agreement shall be enforceable in the state and federal
courts presiding in Jefferson County, Alabama, and any other court of competent
jurisdiction.

         20. Borrowers agree to pay all reasonable expenses, including
attorneys' fees, incurred by Lender in connection with the negotiations and
preparation of this Agreement. The validity and effectiveness of this Agreement
is conditioned upon Borrowers paying all outstanding expenses of Lender as of
the Effective Date, including attorneys' fees, being  _________________________.

         21. WAIVER OF JURY TRIAL. BORROWERS AND LENDER HEREBY EXPRESSLY WAIVE
ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN ANY LAWSUIT OR OTHER COURT ACTION
RELATED TO THE LOANS, THIS AGREEMENT, ANY OF THE LOAN DOCUMENTS OR ANY
TRANSACTION CONTEMPLATED HEREBY OR THEREBY, INCLUDING, WITHOUT LIMITATION, IN
RESPECT TO ANY CLAIM, COUNTERCLAIM, THIRD-PARTY CLAIM, DEFENSE, OR SET-OFF
ASSERTED IN ANY SUCH LAWSUIT OR COURT ACTION. ANY SUCH LAWSUIT OR COURT ACTION
SHALL BE TRIED EXCLUSIVELY TO A COURT WITHOUT A JURY. BORROWERS SPECIFICALLY
ACKNOWLEDGE THAT THEIR EXECUTION OF THIS WAIVER OF JURY TRIAL IS A MATERIAL
PORTION OF THE CONSIDERATION RECEIVED BY THE LENDER IN EXCHANGE FOR ITS ENTERING
INTO THIS AGREEMENT.

         22. This Agreement may be executed in any number of counterparts, but
it shall not be necessary that each counterpart be executed by all the parties
hereto as long as each party executes at least one such counterpart. When each
of the parties hereto has executed at least one counterpart hereof, this
Agreement shall thereupon be deemed executed by all parties, and together all
such counterparts shall comprise but a single instrument. No provision of this
Agreement shall be construed against or interpreted to the disadvantage of any
party to this

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Agreement by any court or other governmental or judicial authority by reason of
such party's having or being deemed to have structured or dictated such
provision. This Agreement will inure to the benefit of the parties hereto, their
respective successors and assigns. This Agreement and the obligations of the
parties hereunder shall be interpreted, construed and enforced in accordance
with the laws of the State of North Carolina. Time is of the essence in the
performance of this Agreement.

                                       6

<PAGE>

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

COMPANY AND SUBSIDIARIES:             LENDER:

SPEIZMAN INDUSTRIES, INC. (SEAL)      SOUTHTRUST BANK (SEAL)

By: /s/ Robert S. Speizman            By: /s/ Andy Raine
   ------------------------------        ---------------------------------------
        Robert S. Speizman                    Andy Raine
        Title: President                      Title:  Vice President

SPEIZMAN YARN EQUIPMENT, INC.
(SEAL)

By: /s/ Robert S. Speizman
   ------------------------------
        Robert S. Speizman
        Title: President

TODD MOTION CONTROLS, INC.
(SEAL)

By: /s/ Robert S. Speizman
   ------------------------------
        Robert S. Speizman
        Title: President

WINK DAVIS EQUIPMENT
COMPANY, INC. (SEAL)

By: /s/ Paul R. M. Demmink
   ------------------------------
        Paul R. M. Demmink
        Title:  Vice President-Finance, CFO

                                       7

<PAGE>

STATE OF NORTH CAROLINA )
                        )
COUNTY OF MECKLENBURG   )

         I, Dana Gail Russell, a Notary Public in and for said County in said
State, hereby certify that Robert S. Speizman, whose name as President of
SPEIZMAN INDUSTRIES, INC., a Delaware corporation, is signed to the foregoing
Forbearance Agreement, and who is known to me, acknowledged before me on this
day that, being informed of the contents of such instrument, he, as such officer
and with full authority, executed the same voluntarily for and as the act of
said corporation.

         Given under my hand and seal, this 31/st/ day of July, 2002.

                                 NOTARY PUBLIC - /s/ Dana Gail Russell

[SEAL]
                                 My Commission Expires: June 25, 2006

STATE OF NORTH CAROLINA )
                        )
COUNTY OF MECKLENBURG   )

         I, Dana Gail Russell, a Notary Public in and for said County in said
State, hereby certify that Robert S. Speizman, whose name as President of
SPEIZMAN YARN EQUIPMENT, INC., a South Carolina corporation, is signed to the
foregoing Forbearance Agreement, and who is known to me, acknowledged before me
on this day that, being informed of the contents of such instrument, he, as such
officer and with full authority, executed the same voluntarily for and as the
act of said corporation.

         Given under my hand and seal, this 31/st/ day of July, 2002.

                                 NOTARY PUBLIC - /s/ Dana Gail Russell

[SEAL]
                                 My Commission Expires: June 25, 2006

                                       8

<PAGE>

STATE OF NORTH CAROLINA )
                        )
COUNTY OF MECKLENBURG   )

         I, Dana Gail Russell, a Notary Public in and for said County in said
State, hereby certify that Robert S. Speizman, whose name as President of TODD
MOTION CONTROLS, INC., a North Carolina corporation, is signed to the foregoing
Forbearance Agreement, and who is known to me, acknowledged before me on this
day that, being informed of the contents of such instrument, he, as such officer
and with full authority, executed the same voluntarily for and as the act of
said corporation.

         Given under my hand and seal, this 31/st/ day of July, 2002.

                                      NOTARY PUBLIC - /s/ Dana Gail Russell

[SEAL]
                                      My Commission Expires: June 25, 2006

STATE OF NORTH CAROLINA )
                        )
COUNTY OF MECKLENBURG   )

         I, Dana Gail Russell, a Notary Public in and for said County in said
State, hereby certify that Paul R. M. Demmink, whose name as Vice
President-Finance, CFO of WINK DAVIS EQUIPMENT, INC., a Georgia corporation, is
signed to the foregoing Forbearance Agreement, and who is known to me,
acknowledged before me on this day that, being informed of the contents of such
instrument, he, as such officer and with full authority, executed the same
voluntarily for and as the act of said corporation.

         Given under my hand and seal, this 31/st/ day of July, 2002.

                                      NOTARY PUBLIC - /s/ Dana Gail Russell

[SEAL]
                                      My Commission Expires: June 25, 2006

                                       9

<PAGE>

STATE OF ALABAMA        )
                        )
COUNTY OF JEFFERSON     )

         I, Kimberly Renee Lowe, a Notary Public in and for said County in said
State, hereby certify that Andy Raine, whose name as Vice President of
SOUTHTRUST BANK is signed to the foregoing Forbearance, and who is known to me,
acknowledged before me on this day that, being informed of the contents of such
instrument, he, as such officer and with full authority, executed the same
voluntarily for and as the act of said SOUTHTRUST BANK.

         Given under my hand and seal, this 31st day of July, 2002.

                                      NOTARY PUBLIC - /s/ Kimberly Renee Lowe

[SEAL]
                                      My Commission Expires: 12/20/04

                                       10

<PAGE>

                                   EXHIBIT A

                               EBITDA PROJECTIONS

                                       11<PAGE>

                                                                   EXHIBIT 10.40

                            INDUSTRIAL BUILDING LEASE

Term of Lease:  Beginning May 8, 2002 / Ending June 30, 2007
Monthly Rent:   See Rider Attached
Date of Lease:  April 25, 2002
Location of Premises: 760 Creel Drive, Wood Dale, IL
Purpose:  Office, Warehousing and Distribution of Commercial Laundry Equipment
except Laundry Chemicals

-------------------------------------------------------------------------------
                   LESSEE                                       LESSOR
--------------------------------------------------------------------------------
Name:     Wink Davis Equipment Co., Inc.   Name:     Kensington Partners, Ltd.
                                                     Owner of Record
--------------------------------------------------------------------------------
Address:  760 Creel Drive                  Address:  765 Route 83, Suite 109
--------------------------------------------------------------------------------
City:     Wood Dale, IL  60191             City:     Bensenville, IL  60106
--------------------------------------------------------------------------------

In consideration of the mutual covenants and agreements herein stated, Lessor
hereby leases to Lessee and Lessee hereby leases from Lessor solely for the
above purpose the premises designated above (the "Premises"), together with the
appurtenances thereto, for the above Term.

                         LEASE COVENANTS AND AGREEMENTS

1. RENT. Lessee shall pay Lessor or Lessor's agent as rent for the Premises the
sum stated above, monthly in advance, until termination of this lease, at
Lessor's address stated above or such other address as Lessor may designate in
writing.

2. CONDITIONS AND UPKEEP OF PREMISES. Lessee has examined and knows the
condition of the Premises and has received the same in good order and repair,
and acknowledges that no representations as to the condition and repair thereof
have been made by Lessor, or his agent, prior to or at the execution of this
lease that are not herein expressed; Lessee will keep the Premises including all
appurtenances, in good repair, replacing all broken glass with glass of the same
size and quality as that broken, and will replace all damaged plumbing fixtures
with others of equal quality, and will keep the Premises, including adjoining
alleys and landscaping abutting the Premises, in a clean and healthful condition
according to the applicable municipal ordinances and the direction of the proper
public officers during the term of this Lease at Lessee's expense, and will
without injury to the roof, remove all snow and ice from the same when
necessary, and will remove the snow and ice from the sidewalk and parking areas
abutting the Premises; and upon the termination of this lease, in any way, will
yield up the Premises to Lessor, in good condition and repair, loss by fire and
ordinary wear excepted, and will deliver the keys therefor at the place of
payment of said rent.

3. LESSEE NOT TO MISUSE: SUBLET: ASSIGNMENT. Lessee will not allow Premises to
be used for any purpose that will increase the rate of insurance thereon, nor
for any purpose other than that hereinbefore specified, and will not load floors
with machinery or goods beyond the floor load rating prescribed by applicable
municipal ordinances, and will not allow the Premises to be occupied in whole,
or in part, by any other person, and will not sublet the same, or any part
thereof, nor assign this lease without in each case the written consent of the
Lessor first had, and Lessee will not permit any transfer by operation of law of
the interest in Premises acquired through this lease, and will not permit
Premises to be used for any unlawful purpose, or for any purpose that will
injure the reputation of the building or increase the fire hazard of the
building, or disturb the tenants or the neighborhood, and will not permit the
same to remain vacant or unoccupied for more than ten consecutively days; and
will not allow any signs, cards or placards to be posted, or placed thereon, nor
permit any alteration of or addition to any of the Premises, except by written
consent of Lessor; all alterations and additions to the Premises shall remain
for the benefit of Lessor unless otherwise provided in the consent aforesaid.

<PAGE>

4. MECHANIC'S LIEN. Lessee will not permit any mechanic's lien or liens to be
placed upon the Premises or any building or improvement thereon during the term
hereof, and in case of the filing of such lien Lessee will promptly pay same. If
default in payment thereof shall continue for thirty (30) days after written
notice thereof from Lessor to the Lessee; the Lessor shall have the right and
privilege at Lessor's option of paying the same or any portion thereof without
inquiry as to the validity thereof, and any amounts so paid, including expenses
and interest, shall be so much additional indebtedness hereunder due from Lessee
to Lessor and shall be repaid to Lessor immediately on rendition of bill
therefor.

5. INDEMNITY FOR ACCIDENTS.

   A. Lessee covenants and agrees that he will protect and save and keep the
      Lessor forever harmless and indemnified against and from any penalty or
      damages or charges imposed for any violation of any laws or ordinances,
      whether occasioned by the neglect of Lessee or those hold under Lessee,
      and that Lessee will at all times protect, indemnify and save and keep
      harmless the Lessor against and from any and all loss, cost, damage or
      expense, arising out of or from any accident or other occurrence on or
      about the Premises, causing injury to any person or property whomsoever or
      whatsoever and will protect, indemnify and save and keep harmless the
      Lessor against and from any and all claims and against and from any and
      all loss, cost, damage or expense arising out of any failure of Lessee in
      any respect to comply with and perform all the requirements and provision
      hereof.

   B. Lessor covenants and agrees that he will protect and save and keep the
      Lessee forever harmless and indemnified against and from any penalty or
      damages or charges imposed for any violation of any laws or ordinances
      occasioned by any act or negligence of Lessor, its agents, contractors or
      employees. Further, Lessor will at all times protect, indemnify and save
      and keep harmless the Lessee against and from any and all loss, cost,
      damage or expense arising out of or from any accident or other occurrence
      occasioned by any act or negligence of Lessor, its agents, contractors or
      employees causing injury to any person or property. Further, Lessor will
      protect and indemnify and save and keep harmless the Lessee against and
      from any and all claims and against and from all loss, cost, damage or
      expense arising out of any failure of Lessor to comply with and perform
      the requirements of Lessor as set forth in this lease.

6. NON-LIABILITY OF LESSOR. Except as provided by Illinois stature, Lessor shall
not be liable for any damage occasioned by failure to keep the Premises in
repair, nor for any damage done or occasioned by or from plumbing, gas, water,
sprinkler, steam or other pipes or sewerage or the bursting, leaking or running
of any pipes, tank or plumbing fixtures, in, above, upon or about Premises or
any building or improvement thereon nor for any damage occasioned by water, snow
or ice being upon or coming through the roof, skylights, trap door or otherwise,
nor for any damages arising from acts or neglect of any owners or occupants of
adjacent or contiguous property. Prior to the required roof repairs, the
condition of the roof will be an exception to this section.

7. WATER, GAS AND ELECTRICAL CHARGES. Lessee will pay, in addition to the rent
above specified, all water rents, gas and electric light and power bills taxed,
levied or charged on the Premises, for and during the time for which this lease
is granted, and in case said water rents and bills for gas, electric light and
power shall not be paid when due, Lessor shall have the right to pay the same,
which amounts so paid, together with any sums paid by Lessor to keep the
Premises in a clean and healthy condition, as above specified, are declared to
be so much additional rent and payable with the installment of rent next due
thereafter.

8. KEEP PREMISES IN REPAIR.  Lessor shall not be obliged to incur any expense
for repairing any

                                                                               2

<PAGE>

improvements upon said demised premises or connected therewith, and the Lessee
at his own expense will keep all improvements in good repair (injury by fire, or
other causes beyond Lessee's control excepted) as well as in a good tenantable
and wholesome condition, and will comply with all local or general regulations,
laws and ordinances applicable thereto, as well as lawful requirements of all
competent authorities in that behalf. Lessee will, as far as possible, keep said
improvements from deterioration and falling temporarily out of repair. If Lessee
does not make repairs as required hereunder promptly and adequately, Lessor may
but need not make such repairs and pay the costs thereof, and such costs shall
be so much additional rent immediately due from and payable by Lessee to Lessor.

9.  ACCESS TO PREMISES. Lessee will allow Lessor free access to the Premises,
provided twenty-four hour notice to Lessee, for the purpose of examining or
exhibiting the same or to make any repairs, or alterations thereof which Lessor
may see fit to make and will allow to have placed upon the Premises at all times
notice of "For Sale" and "To Rent", and will not interfere with the same.

10. ABANDONMENT AND RELETTING. If Lessee shall abandon or vacate the Premises,
or if Lessee's right to occupy the Premises be terminated by Lessor by reason of
Lessee's breach of any of the covenants herein, the same may be re-let by Lessor
for such rent and upon such terms as Lessor may deem fit, subject to Illinois
statute; and if a sufficient sum shall not thus be realized monthly, after
paying the expenses of such re-letting and collecting to satisfy the rent hereby
reserved, Lessee agrees to satisfy and pay all deficiency monthly during the
remaining period of this lease.

11. HOLDING OVER. Lessee will, at the termination of this lease by lapse of time
or otherwise, yield up immediate possession to Lessor, and failing so to do,
will pay as liquidated damages, for the whole time such possession is withheld,
the sum of two hundred eighty dollars ($280.00) per day; but the provisions of
this clause shall not be held as a waiver by Lessor of any right of re-entry as
hereinafter set forth; nor shall the receipt of said rent or any part thereof,
or any other act in apparent affirmance of tenancy, operate as a waiver of the
right to forfeit this lease and the term hereby granted for the period still
unexpired, for a breach of any of the covenants herein.

12. EXTRA FIRE HAZARD. There shall not be allowed, kept, or used on the Premises
any inflammable or explosive liquids or materials save such as may be necessary
for use in the business of the Lessee, and in such case, any such substances
shall be delivered and stored in amount, and used, in accordance with the rules
of the applicable Board of Underwriters and statutes and ordinances now or
hereafter in force.

13. DEFAULT BY LESSEE. If default be made in the payment of the above rent, or
any part thereof, or in any of the covenants herein contained to be kept by the
Lessee, Lessor may at any time thereafter at this election declare said term
ended and reenter the Premises or any part thereof, with or (to the extent
permitted by law) without notice or process of law, and remove Lessee or any
persons occupying the same, without prejudice to any remedies which might
otherwise be used for arrears of rent, and Lessor shall have at all times the
right to distrain for rent due, and shall have a valid and first lien upon all
personal property which Lessee now owns, or may hereafter acquire or have an
interest in, which is by law subject to such distraint, as security for payment
of the rent herein reserved. Monetary defaults shall occur on the 10/th/ day,
non-monetary defaults will occur after the 30/th/ day.

14. NO RENT DEDUCTION OR SET OFF. Lessee's covenant to pay rent is and shall be
independent of each and every other covenant of this lease. Lessee agrees that
any claim by Lessee against Lessor shall not be deducted from rent nor set off
against any claim for rent in any action.

15. RENT AFTER NOTICE OR SUIT. It is further agreed, by the parties hereto, that
after the service of notice or the commencement of a suit or after final
judgment for possession of the Premises, Lessor may receive

                                                                               3

<PAGE>

and collect any rent due, and the payment of said rent shall not waive or affect
said notice, said suit, or said judgment.

16. PAYMENT OF COSTS. Lessee will pay and discharge all reasonable costs,
attorney's fees and expenses that shall be made and incurred by Lessor in
enforcing the covenants and agreements of this lease.

17. RIGHTS CUMULATIVE. The rights and remedies of Lessor under this lease are
cumulative. The exercise or use of any one or more thereof shall not bar Lessor
from exercise or use of any other right or remedy provided herein or otherwise
provided by law, nor shall exercise nor use of any right or remedy by Lessor
waive any other right or remedy.

18. FIRE AND CASUALTY. In case the Premises shall be rendered untenantable
during the term of this lease by fire or other casualty, Lessor at his option
may terminate the lease or repair the Premises within 60 days thereafter. If
Lessor elects to repair, this lease shall remain in effect provided such repairs
are completed within said time. If Lessor shall not have repaired the Premises
within said time, then at the end of such time the term hereby created shall
terminate. If this lease is terminated by reason of fire or casualty as herein
specified, rent shall be apportioned and paid to the day of such fire or
casualty.

19. SUBORDINATION, ATTORNMENT, NONDISTURBANCE, AND ESTOPPEL. This lease is
subordinate to all mortgages which may now or hereafter affect the Premises.
This Lease and Lessee's rights are and shall be subject to any mortgage(s) or
trust deed(s) now or hereafter placed by Lessor against the Premises and to any
amendments, modifications or renewals thereof. Lessee shall execute and deliver
within ten (10) days of the request of Lessor or its mortgagee such
acknowledgments or documents as may be requested from time to time in connection
with the financing of the Premises including, without limitation, subordination
and attornment instruments, and estoppel certificates.

Lessee hereby consents in advance to any collateral assignment of the Lease
which Lessor elects, in its sole discretion, to execute, provided that every
such collateral assignment shall provide that the same shall not become
operative except in the event of a default under the note collateralized by this
Lease or under any mortgage securing such note.

If, in connection with the financing of the Premises or any part or component
thereof, any lender shall request reasonable modifications of the Lease that do
not materially increase the obligations or materially and adversely affect the
rights of Lessee under this Lease, Lessee covenants to make such modifications.
If any foreclosure proceedings are initiated by any lender, or a deed in lieu is
granted, Lessee agrees, upon written request of any such lender or any purchaser
at sale, to attorn and pay rent to such party and to execute and deliver any
instruments necessary or appropriate to evidence or effectuate such attornment.
In the event of attornment, no lender shall be: (i) liability for any act or
omission of Lessor, or subject to any offsets or defenses which Lessee might
have against Lessor prior to such lender's becoming Lessor under such
attornment. Subject to the foregoing, any lender shall not disturb the tenancy
of Lessee hereunder provided that Lessee attorn to such lender and fully and
faithfully performs and observes each and every obligation of Lessee hereunder.

20. PLURALS; SUCCESSORS. The words "Lessor" and "Lessee" wherever herein
occurring and used shall be construed to mean "Lessors" and "Lessees" in case
more than one person constitutes either party to this lease; and all the
covenants and agreements contained shall be binding upon, and inure to, their
respective successors, heirs, executors, administrators and assigns and may be
exercised by his or their attorney or agent.

21. SEVERABILITY. Wherever possible each provision of this lease shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this lease shall be prohibited by or invalid under
applicable law, such provision shall be ineffective to the extent of such
prohibition or invalidity, without

                                                                               4

<PAGE>

validating the remainder of such provision or the remaining provisions of this
lease.

If this instrument is executed by a corporation, such execution has been
authorized by a duly adopted resolution of the Board of Directors of such
corporation.

This lease consists of 6 pages numbered 1 to 6, including a rider consisting of
3 pages, identified by Lessor and Lessee.

IN WITNESS WHEREOF, the parties hereto have executed this instrument this day
and year first above written.

/s/ L. Gail Gormly                       /s/ P. Donald Mullen             (SEAL)
-----------------------------------      ---------------------------------
L. Gail Gormly                           P. Donald Mullen, President

___________________________________      _________________________________(SEAL)

     Please print or type name(s)        _________________________________(SEAL)
     below signature(s)
                                         _________________________________(SEAL)

                              ASSIGNMENT BY LESSOR

On this _____________________, 20___, for value received, Lessor hereby
transfers, assigns and sets over to ________________________________, all right,
title and interest in and to the above Lease and the rent thereby reserved,
except rent due and payable to __________________________, 20___.

                                               __________________________(SEAL)

                                               __________________________(SEAL)

                                                                               5

<PAGE>

                                    GUARANTEE

On this _________________, 20___, in consideration or Ten Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the undersigned Guarantor hereby guarantees the payment of
rent and performance by Lessee, Lessee's heirs, executors, administrators,
successors or assigns of all covenants and agreements of the above Lease.

                                                 ______________________(SEAL)

                                                 ______________________(SEAL)

State of Illinois, County of __________________ss.

I, the undersigned, a Notary Public in and for said County, in the State
aforesaid, DO HEREBY CERTIFY that

                       _____________________________personally known to me to be
                       the same person _____ whose name _____________ subscribed
                       to the foregoing instrument, appeared before me this day
                       in person, and acknowledged that _____ he ____________
                       signed, sealed and delivered the said instrument as
             IMPRESS   ________________ free and voluntary act, for the uses and
              SEAL     purposes therein set forth, including the release and
              HERE     waiver of right of homestead.

                       Given my hand and official seal this _______ day of ____,
                       20__.

Commission expires _________________, 20__    __________________________________
                                              Notary Public

This document was prepared by __________________________________________________
                                       (Name and Address)

Mail to:________________________________________________________________________
          (Name and Address)

        ________________________________________________________________________
        (City)                         (State)                        (Zip Code)

Or Recorder's Office Box No. ___________________________________________________

Legal Description:

Permanent Real Estate Index Number(s) __________________________________________

Address(es) of Real Estate: ____________________________________________________

                                                                               6

<PAGE>

                   RIDER ATTACHED TO AND A PART OF INDUSTRIAL
                   BUILDING LEASE AGREEMENT BETWEEN KENSINGTON
            PARTNERS, LTD., LESSOR AND WINK DAVIS EQUIPMENT CO., INC.
             AS LESSEE FOR THE PREMISES LOCATED AT 760 CREEL DRIVE,
                                 WOOD DALE, IL.

22. RIDER GOVERNS: In the event of any discrepancy between the form portion of
this lease, and the rider, provisions of the rider shall govern.

23. RENT: A. The total minimum base rent reserved in this lease shall be THREE
HUNDRED FIFTY TWO THOUSAND SIX HUNDRED TWENTY-EIGHT AND 88/100 DOLLARS
($352,628.88) payable monthly in advance as follows:

          May 8, 2002 - May 31, 2002       $4,300.80 monthly
          June 1, 2002 - May 30, 2003      $5,555.27 monthly
          June 1, 2003 - May 30, 2004      $5,677.27 monthly
          June 1, 2004 - May 30 2005       $5,802.35 monthly
          June 1, 2005 - May 30, 2006      $5,930.52 monthly
          June 1, 2006 - May 30, 2007      $6,031.93 monthly

    B.    Said rent shall be paid to LESSOR without deductions or offset and
          without notice or demand at LESSOR'S address or to such other person
          or at suchother place as LESSOR may from time to time designate in
          writing.

    C.    LESSEE agrees to pay rent in advance to LESSOR on or before the first
          day of each and every month, LESSEE agrees to pay an additional sum
          equal to 10% of the monthly rental as a late charge. Late charges
          shall be paid at the time of payment of the next month's rent.

24. TAXES: LESSOR shall pay all taxes levied or assessed against the subject
property before they become delinquent. LESSEE agrees to pay as additional rent
during the term of this lease or any renewals or extensions thereof any increase
in such taxes over a base tax amount of the fully assessed 2000 tax bill, plus
any legal fees incurred in successfully contesting the Real Estate Tax
Assessment. A copy of the 2000 tax bill is attached hereto for future reference.

At the time a tax bill is received containing increases which are to be paid by
LESSEE, LESSOR will notify LESSEE of the amount due for such yearly increase
plus a prorated portion of the increase for the then current year, which shall
be due within ten (10) days of such notice. LESSEE shall also commence paying
1/12/th/ of such increase as additional monthly rental, which shall be applied
to any increase contained in the next tax bill. Upon termination of the term,
any deficiency in the tax payments made by LESSEE, based on the most recent
ascertainable taxes, may be deducted from the security deposit to be returned to
LESSEE.

25. INSURANCE: A. LESSEE agrees to maintain in force at LESSEE'S sole obligation
    and expense, insurance coverage on the Premises with minimum coverage of
    Bodily Injury

                                                                               7

<PAGE>

    ($1,000,000.00 each occurrence and $2,000,000.00 aggregate). Property Damage
    ($500,000.00 each occurrence and $500,000.00 aggregate), and Personal Injury
    ($1,000,000.00).

Said policy shall be written with an insurance company reasonably satisfactory
to LESSOR and shall contain a provision that it may not be canceled without at
least thirty (30) days written notice to LESSOR. A Certificate of Insurance
shall be delivered to the LESSOR and shall indicate Kensington Partners, Ltd. as
an additional Insured.

LESSEE agrees to comply with any and all recommendations of the insurance
company or companies concerning LESSEE'S manner of use of the leased premises so
as to avoid invalidating any insurance policy carried on the premises.

LESSEE, at its expense, agrees to install portable fire extinguishers, if
necessary on the premises due to LESSEE'S specific business as required by
LESSOR'S insurance companies and/or municipal authorities.

If the use of the premises increases the hazard beyond that contemplated in this
lese, or if as a result of any hazard of the LESSEE'S operations in the demised
premises, the rate or premium on fire or other insurance is raised, the LESSEE
will pay for such increase in cost.

    B. LESSOR shall provide and maintain all peril casualty insurance on subject
       property at all times during the term hereof, at LESSOR'S expense.
       However, LESSEE shall pay any cost of said casualty insurance in excess
       of the current premium (2002 - Base Year) or any increase that is a
       result of LESSEE'S use or occupancy of subject property.

26. PERSONAL PROPERTY: LESSEE is hereby given the right and privilege of
removing all personal property belonging to said LESSEE at the expiration of the
said lease provided, however, any damage or injury caused to said real estate by
reason of the removal of said personal property shall be repaired by and at the
expense of the LESSEE, normal wear and tear excepted if caused by the conduct of
LESSEE'S business. Personal property attached to the building shall be removed
only upon LESSOR'S written consent, which consent shall not unreasonably be
withheld.

27. UTILITY SERVICE: An electric meter, gas meter and water meter are installed
in subject premise. The billing for utilities will be paid by LESSEE directly to
the utility companies.

28. MAINTENANCE: LESSEE shall, at the LESSEE'S sole cost and expense, be
responsible for the normal routine maintenance, repair or replacement of the
following: floor coverings, plumbing fixtures, rodding of all plumbing and sewer
lines within the building, electrical fixtures, light bulbs and ballasts, hot
water heater, hinges, locks, widow and plate glass, window hardware and
mechanisms, dock and garage doors, automatic garage door openers, and heating
and air conditioning systems.

Required costs for the maintenance and replacement of the heating and air
conditioning equipment, above the annual maintenance agreement held by Lessee,
shall be shared equally.

All repairs must be made with materials of the same size and quality as is
existing. If the LESSEE fails to maintain the premises and make the necessary
repairs during the term of this Lease, the

                                                                               8

<PAGE>

LESSOR may make the repairs and charge the LESSEE accordingly.

LESSOR is responsible for maintenance, repair, or replacement of roof and
structural walls unless it is necessitated by the intentional or negligent acts
of the LESSEE, its agents or employees.

At all times during the term of this Lease, LESSEE shall have and keep in force
a maintenance contract (in form and with a contractor satisfactory to LESSOR),
providing for inspection and necessary repairs of heating, air conditioning and
ventilating equipment at least two (2) times per calendar year. Said contract
shall provide that it will not be cancelable by either party thereto, except
upon thirty (30) days written notice to LESSOR. Copies of the inspection reports
will be submitted to LESSOR within thirty (30) days of inspection.

29. USE: LESSEE agrees not to store any materials, engage in any activity or
discharge any matter in the air, sewers, or on the property contrary to the laws
and ordinances of the Corporate Municipality or Fire Protection District or
other governmental bodies having authority or jurisdiction and shall hold LESSOR
harmless for any cost involved due to LESSEE'S illegal activity or discharge.

30. SECURITY DEPOSIT: LESSEE has submitted to LESSOR, ELEVEN THOUSAND SIX
HUNDRED FIFTY FIVE DOLLARS AND 57/100 ($11,655.57) representing an amount equal
to ONE (1) MONTH rent to be held as security deposit plus one month rent in
advance. Security deposit shall secure the faithful performance by LESSEE of all
of the terms, covenants and conditions for which LESSEE is obligated. Upon
termination of the Lease, LESSOR may apply the security deposit to the cost of
repairing any damage caused by LESSEE, or to any other amounts due hereunder
from LESSEE to LESSOR, and agrees to return the balance, if any, to LESSEE,
within thirty (30) days of termination of this lease. The security deposit is
not to be considered the last months rent.

31. SNOW REMOVAL & LAWN CARE: LESSEE shall be responsible for snow removal and
lawn maintenance during the term of this lease.

32. LESSEE'S USE: LESSEE represents and warrants that his intended use shall
comply with all applicable laws, governmental regulations, and the terms of any
enforcement action commenced by any federal, state, regional or local laws
pertaining to air and water quality, hazardous waste, waste disposal and other
environmental matters, including, but not limited to, the Clean Water, Clean
Air, Federal Water Pollution Control, Solid Waste Disposal, Resource
Conservation and Recovery and Liability Acts, and the rules, regulations,
guidelines and ordinances of all applicable federal, state, and local agencies
and bureaus. LESSEE hereby covenants and agrees to indemnify, defend and hold
harmless from and against any claim, action suit, punitive damage or expense
(including, without limitation, attorney's fees), resulting form, arising out
of, or base upon (I) the presence, release, use, generation, discharge, storage,
or disposal of any Hazardous Materials on, under, in or about, or to and from
the property as it relates to LESSSEE'S use, or (II) the violation, or alleged
violation, of any statute, ordinance, order, rule, regulation, permit judgement
or license relating to the use, generation, release, discharge, storage,
disposal or transportation of Hazardous Materials on, under, in or about, or to
or from the property as it relates to LESSEE'S use.

This indemnity shall include, without limitation, any damage, liability, fine,
penalty, punitive damage, cost or expense arising from or out of any claim,
action, suit or proceeding for personal injury

                                                                               9

<PAGE>

(including sickness, disease, or death) tangible or intangible property damage,
compensation for lost wages, business income, profits or other economic loss,
damage to the natural resources or the environment, nuisance, pollution,
contamination, leak spill, release or other adverse effect on the environment.
These environmental representations and indemnification shall survive lease term
for an indefinite period of time.

LESSEE:                                           LESSOR:

/s/ P. Donald Mullen                              /s/ Steven R. Ballagh
-----------------------------------               ------------------------------
P. Donald Mullen                                  Steven R. Ballagh
Wink Davis Equipment Company, Inc.                Kensington Partners, Ltd.

                                                                              10

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