Document:

ASSIGNMENT AND ASSUMPTION OF LEASE

                       Brownsville, TX

THIS  ASSIGNMENT AND ASSUMPTION OF LEASE (this "Assignment")
is  made  and  entered into as of the 17th day of  February,
2006, by and between MEYER-LAMPH DEVELOPMENT GROUP, LTD.,  a
Texas  limited partnership ("Assignor"), and  AEI  INCOME  &
GROWTH  FUND  25  LLC, a Delaware limited liability  company
("Assignee").

                          RECITALS:

     A.    Assignor and Assignee are parties to that certain
Commercial  Purchase  and Sale Contract  dated  November  4,
2005,  (the  "Agreement"), pursuant  to  which  Assignee  is
acquiring  from Assignor the real property, and improvements
located  on  such property, more particularly  described  on
EXHIBIT  A attached hereto and incorporated herein  by  this
reference (the "Premises").

B.   Pursuant to the terms of the Agreement, Assignor
desires to sell, assign, convey, transfer and set over to
Assignee and Assignee desires to assume all of Assignor's
interest in that certain Lease dated February 7, 2005 (the
"Lease") by and between Assignor and Advance Stores Company,
Incorporated (the "Tenant"), as evidenced by that certain
Memorandum of Lease dated _____________, 2006, which was
filed and recorded as of the date hereof as Volume _____,
Page ________ in the Official Public Records of Cameron
County, Texas, including all rents prepaid for any period
subsequent to the date of this Assignment, subject to the
terms and conditions set forth below.
C.   Assignor is the Landlord under the Lease with full
right and title to assign the Lease, and the "Rent" (as
defined below) to Assignee as provided herein.  The Lease is
in full force and effect and has not been modified or
amended.  So far as is known to Assignor, there is no
default by Tenant under the Lease, and no Rent has been
waived, anticipated, discounted, compromised or released.
     NOW, THEREFORE, in consideration of the Recitals, which
are  hereby made a part hereof, for other good and  valuable
consideration,  the  receipt and sufficiency  of  which  are
hereby  acknowledged by the parties, Assignor  and  Assignee
hereby agree as follows:

1.   Assignor hereby irrevocably and unconditionally sells,
assigns, conveys, transfers and sets over unto Assignee, its
heirs,  successors and assigns as of the  date  hereof  (the
"Effective  Date"),  all  of  Assignor's  right,  title  and
interest       in,       to       and       under:       (i)

the  Lease,  and  (ii) any and all rents  prepaid  as  of  the
Effective Date, held by Assignor in connection with the  Lease
(the "Rent").

2.   Except as otherwise set forth in Paragraph 4 hereof,
Assignee  hereby assumes and shall be liable for any  and  all
liabilities,   claims,  obligations,  losses   and   expenses,
including  reasonable  attorneys' fees arising  in  connection
with  the Lease, which are actually incurred, and which  arise
by  virtue  of  acts or omissions occurring thereunder  on  or
after  the Effective Date. Assignor shall indemnify  and  hold
Assignee  harmless  from  any  and  all  liabilities,  claims,
obligations,   losses   and  expenses,  including   reasonable
attorneys' fees arising in connection with the Lease which are
actually  incurred,  and which arise  by  virtue  of  acts  or
omissions  occurring thereunder, prior to the Effective  Date.
Except  as otherwise set forth in Paragraph 4 hereof, Assignee
shall  indemnify and hold Assignor harmless from any  and  all
liabilities, claims, obligations, loss and expenses, including
reasonable  attorneys' fees, arising in  connection  with  the
Lease  or  as  a result of Assignee's failure to  fulfill  the
landlord's duties and obligations accruing under the Lease  on
or  after  the Effective Date.  Assignee shall be entitled  to
receive all income arising from the Lease from and after  said
Effective  Date.  Assignor shall be entitled  to  receive  all
income  accruing  from the Lease prior to the Effective  Date.
In  the  event  that  Assignor is paid  any  rents  after  the
Effective  Date, Assignor agrees to pay such  to  Assignee  as
soon  as  reasonably practicable after the date of receipt  by
Assignor.

3.   Assignor shall direct the Tenant and any successor tenant
under  the  Lease to pay to Assignee the Rent  and  all  other
monetary obligations due or to become due under the Lease  for
the period beginning on the Effective Date.

4.   Notwithstanding anything contained herein or implied
hereby to the contrary, Assignor shall remain liable for the
performance of the obligations of the "Landlord" under the
Lease with respect to Landlord's obligations under Section 2
of the Lease.

5.   This Assignment shall be governed by and construed in
accordance with the laws of the state in which the Property is
located.

6.   All rights and obligations of Assignee and Assignor
hereunder shall be binding upon and inure to the benefit of
Assignor, Assignee and the heirs, successors and assigns of
each such party.

7.   This Assignment may be executed in any number of
counterparts, each of which shall be effective only upon
delivery and thereafter shall be deemed an original, and all
of which shall be taken to be one and the same instrument, for
the same effect as if all parties hereto had signed the same
signature page. Any signature page of this Assignment may be
detached from any counterpart of this Assignment without
impairing the legal effect of any signatures thereon and may
be attached to another counterpart of this Agreement identical
in form hereto but having attached to it one or more
additional signature pages.

8.   Whenever the context so requires in this Assignment, all
words used in the singular shall be construed to have been
used in the plural (and vice versa), each gender shall be
construed to include any other genders, and the word "person"
shall be construed to include a natural person, a corporation,
a firm, a partnership, a joint venture, a trust, an estate or
any other entity.

     IN WITNESS WHEREOF, Assignor and Assignee have executed
this Assignment effective as of the day and year first above
written.

                       ASSIGNOR:MEYER-LAMPH DEVELOPMENT GROUP, LTD.,
                       a Texas limited partnership
                       By:   DSL Management, L.L.C.,
                             a Texas limited liability company,
                             its General Partner

                       By: /s/ Dale Meyer
                       Name:   Dale Meyer
                       Its:    President

STATE OF TEXAS          )
                        ) ss.
COUNTY OF HIDALGO       )

     This  instrument was acknowledged before me on  the  16th
day of February 2006, by DALE MEYER, acting in his capacity as
President of DSL Management, L.L.C., General Partner of Meyer-
Lamph  Development  Group, Ltd., A Texas Limited  Partnership,
and on behalf of said Partnership.

[Notarial Seal]
                             /s/ Matthew L Jones
                                Notary  Public, State of Texas
                                My Commission Expires:

          [SIGNATURES TO CONTINUE ON FOLLOWING PAGE]

               ASSIGNEE:      AEI INCOME & GROWTH FUND 25 LLC,
                              a Delaware limited liability
                              company

                              By: AEI Fund Management XXI, Inc.,
                                  a Minnesota corporation,
                                  its Managing Member

                              By:  /s/ Robert P Johnson
                                       Robert P. Johnson, its President

STATE OF MINNESOTA       )
                         ) ss.
COUNTY OF RAMSEY         )

The  foregoing  was acknowledged before me this  ____  day  of
February, 2006, by Robert P. Johnson, in his capacity  as  the
President  of  AEI  Fund  Management XXI,  Inc.,  a  Minnesota
corporation, the Managing Member of AEI Income &  Growth  Fund
25 LLC, a Delaware limited liability company, who acknowledged
the  execution of the foregoing instrument to be the voluntary
act and deed of said corporation by authority of its board  of
directors on behalf of the company.

[Seal]                         /s/ Jennifer L Schriner
                       Print Name: Jennifer L Schriner
                       My Commission Expires: 01/31/2010

                           EXHIBIT A

                       Legal Description

LOT  TWO  (2),  BLOCK  (1),  M-L 802  AND  48  SUBDIVISION,  A
SUBDIVISION IN THE CITY OF BROWNSVILLE, CAMERON COUNTY, TEXAS,
ACCORDING TO THE MAP THEREOF RECORDED IN CABINET 1, SLOT 2501-
B MAP RECORDS OF CAMERON COUNTY, TEXAS and also known as  5825
East Ruben Torres Boulevard

                        LEASE AGREEMENT

    THIS  LEASE  AGREEMENT  (this  "Lease")  is  made  as   of
February  7th, 2005 (the "Commencement Date"), between  MEYER-
LAMPH  DEVELOPMENT  GROUP, LTD., a Texas  limited  partnership
("Landlord");  and  ADVANCE STORES  COMPANY,  INCORPORATED,  a
Virginia corporation ("Tenant").

    In  consideration  of  their mutual  covenants  and  other
valuable consideration, the adequacy and sufficiency of  which
are  hereby acknowledged, Landlord and Tenant hereby agree  as
follows:

     1)   LEASED PREMISES. Subject to and in accordance with the
terms  hereof,  Landlord hereby leases to Tenant,  and  Tenant
leases  from  Landlord, the premises situated at Highway  802,
Cameron County, Brownsville, Texas consisting of approximately
0.815  acres which is outlined in red on a survey dated August
26,  2004,  prepared by Ambiotec Group (the  "Survey"),  which
Survey  is  attached hereto as Exhibit "A" and is incorporated
herein  by  this  reference (together with all  appurtenances,
rights,   interest,  easements  and  privileges  in  any   way
pertaining   thereto,   the   "Land"),   together   with   the
improvements  to  be  constructed  on  the  Land  by  Landlord
pursuant  to  this Lease, such improvements to  consist  of  a
building  space of approximately 7,000 square  feet  of  gross
leasable  floor  area  (the "Building")  and  the  surrounding
parking, landscape and sidewalk areas (including any  and  all
striping  of  such  parking areas) (collectively,  the  "Other
Improvements"),  all as identified on the site  plan  attached
hereto as Exhibit "B," Attachment 1 and incorporated herein by
this  reference (the "Site Plan"). The Land, the Building  and
the   Other   Improvements,  together   with   the   "Tenant's
Improvements"   (as  hereinafter  defined),  if   any,   shall
hereinafter  be  collectively  referred  to  as  the   "Leased
Premises."

     2)   CONSTRUCTION OF LEASED PREMISES. Landlord shall, at its
sole  cost and expense, perform the "Work" (as defined in  the
Construction  Provisions) in accordance with the  construction
provisions  attached hereto as Exhibit "B" (the  "Construction
Provisions").

     3)   USE.

    a)  Tenant  may use the Leased Premises for  the  display,
    storage   and   sale  of  automotive  parts,  accessories,
    supplies  and/or  maintenance items or  for  any  and  all
    other  lawful uses; provided, however, in no  event  shall
    the  Leased  Premises  be used for any  of  the  following
    (collectively, the "Prohibited Uses"):

              i)   trailer court, junk yard, waste material collection
         facility, or auction house;

         ii)  establishments providing adult-type entertainment or
         displays of a variety involving or depicting nudity or lewd
         acts;

    iii) a massage parlor; a funeral home;

    v)   a facility for the sale of paraphernalia for use
    with illicit drugs;

    vi)  a facility for the sale or display of pornographic
    (as determined by community standards for the area in
    which the Leased Premises is located) material;

    vii) overnight parking of campers, mobile homes, boats or
    tractor trailers, except for such trailers as are a part
    of Tenant's business operations;

    viii)     any exploration, drilling or similar operation
    of any kind;

    ix)  dance hall, bar, restaurant, off-track betting
    business, billiard or pool hall, bingo or similar games
    of chance, game arcade, nightclub or flea market;

    x)   any use which involves the raising, breeding or
    keeping of any animals or poultry;

    xi)  any dangerous or unsafe uses;

    xii) any industrial uses, including, without limitation,
    any   manufacturing,  smelting,  rendering,  brewing,
    refining, chemical manufacturing or processing, or other
    manufacturing uses;

    xiii)     any mining or mineral exploration or
    development except by non-surface means;

    xiv) drug or alcohol rehabilitation or treatment center;

    xv)  abortion clinic; or

    xvi) any place of religious worship such as a church,
    temple, synagogue, mosque, or the like.

b) Tenant may operate its business at the Leased Premises
under  any name of its choosing or permitted by  law  and
may  set its hours and days of operation, if any, in  its
sole   discretion.  Notwithstanding  anything   contained
herein  to the contrary, (i) nothing in this Lease  shall
constitute  an agreement of Tenant (express or  implied),
directly or indirectly, to open or operate a business  in
the  Leased  Premises,  the  rentals  received  hereunder
constituting  the  entire  consideration  for  Landlord's
entering  into this Lease, and (ii) Tenant  may,  at  any
time  during the "Term" (as hereinafter defined), without
Landlord's consent, cease business operations  at  and/or
remove  any  and all of Tenant's "Personal Property"  (as
hereinafter defined) from the Leased Premises.

4)   TERM/EXTENSIONS.

     a)  The  initial term of this Lease (the "Initial  Term")
     shall   commence  on  the  Commencement  Date  and  shall
     terminate  on  the last day of the month in which  occurs
     the  fifteenth  (15th) annual anniversary  of  the  "Rent
     Commencement  Date"  (as hereinafter defined).  The  Rent
     Commencement  Date shall be the earlier to occur  of  (i)
     the  date  that  is  forty-five (45) days  following  the
     "Completion   Date"  (as  defined  in  the   Construction
     Provisions)  or (ii) the date on which Tenant  opens  for
     business   to   the   public  at  the  Leased   Premises.
     Notwithstanding the foregoing, in the event the following
     conditions  have not been satisfied prior  to  such  Rent
     Commencement  Date, then Tenant may, at Tenant's  option,
     pay  no  Basic Rent or any other charges due  under  this
     Lease to Landlord until such time as such conditions have
     been satisfied or waived (whereupon Tenant shall pay  all
     accrued Basic Rent and/or other charges due hereunder  at
     the time of such satisfaction or waiver):

         (i)   Landlord has delivered to Tenant all applicable
         subordination, non-disturbance and attornment agreements
         executed by any and all Mortgagees and/or Ground Lessors with
         respect to the Leased Premises in the form attached to this
         Lease as Exhibit "C"; and

         (ii) Landlord has delivered to Tenant, and Tenant has
         approved, those certain easement agreements, declarations,
         covenants, restrictions, rules, regulations and other
         documents or agreements affecting the Leased Premises set
         forth in Exhibit "H" as Permitted Encumbrances, and Landlord
         has placed of record and delivered a certified copy to Tenant
         of all such agreements and documents.

         (iii)     Landlord has delivered to Tenant a certified copy of
         the Easement to be recorded described in Exhibit "H" in the
         form of Exhibit "H-1" attached hereto.

     Landlord  and  Tenant shall confirm the Rent Commencement
     Date  by a supplemental commencement date agreement,  the
     form  of  which agreement is attached hereto  as  Exhibit
     "D".  The period of time from the Commencement Date until
     the  Rent Commencement Date shall hereinafter be referred
     to as the "Construction Term."

     b) In addition to the Initial Term, Tenant shall have the
     option  (each such right referred to herein as a "Renewal
     Option")  to  renew and extend this Lease for  three  (3)
     consecutive  five  (5)  year periods  (each  such  period
     referred to as an "Option Period" and collectively as the
     "Option Periods") immediately following the Initial Term,
     during   which  Option  Period(s)  all  the   provisions,
     conditions and covenants of this Lease shall continue  in
     full  force  and  effect  except that  "Basic  Rent"  (as
     hereinafter  defined)  payable for the  Option  Period(s)
     shall be as set forth in Section 5(a) of this Lease. Each
     Renewal  Option  shall be deemed exercised  automatically
     unless  Tenant shall give Landlord written notice of  its
     election not to exercise any such Renewal Option at least
     one hundred eighty (180) days prior to the expiration  of
     the  Initial Term or any then-current Option  Period,  as
     applicable.

    c)  From  and after the date on which a Renewal Option  is
    exercised,  references to the words "Term" in  this  Lease
    shall  include  the  Option Period(s) by  which  the  Term
    shall  have  been  extended. In the event  this  Lease  is
    canceled or terminated, the expiration date of this  Lease
    shall  be  that  date on which this Lease is  canceled  or
    terminated.  The  term  "Lease  Year"  shall   mean   each
    successive  period  of  twelve (12)  consecutive  calendar
    months,   commencing  on  the  anniversary  of  the   Rent
    Commencement Date, except that the first Lease Year  shall
    commence on the Rent Commencement Date.

5)   RENT.

    a)   Basic Rent. Commencing on the Rent Commencement Date,
    during  each  Lease Year, Tenant shall  pay  Landlord  the
    following monthly sums ("Basic Rent") which shall be payable,
    in advance, on the first day of each month:

           Initial Term:
           Years 1-10                $9,164.42 per month
           Years 11-15               $10,080.86 per month
          First Option Period        $10,584.90 per month
          Second Option Period       $11,114.15 per month
          Third Option Period        $11,669.85 per month

     If  the Rent Commencement Date shall be a day other  than
     the  first day of a month, the amount of Basic Rent shall
     be  prorated for the balance of such month on a per  diem
     basis,  and the prorated Basic Rent for such month  shall
     be due and payable on the Rent Commencement Date.

    b)   Tenant shall have no obligation to pay Basic Rent or any
     other charges due under this Lease to any party other than
     Landlord unless and until Tenant has received notice of a
     change given pursuant to Section 24 below. In the event such
     notice is given in connection with a transfer or sale  of
     Landlord's interest in the Leased Premises and/or this Lease,
     such notice shall not be binding upon Tenant until Tenant has
     received  (i)  a  copy  of  the instrument  assigning  or
     transferring Landlord's interest, (ii) a letter specifying the
     addresses to which rent and notices are to be forwarded to
     such assignee or transferee and (ii) a W-9 form executed by
     the  assignee or transferee. The instrument assigning  or
     transferring Landlord's interest shall evidence the fact that
     such assignee or transferee has assumed all of Landlord's
     obligations under this Lease and has acquired sufficient title
     to the Leased Premises to enable such assignee or transferee
     to perform such obligations; provided, however, this provision
     shall not be applicable to any transfer given as security for
     a loan, and no transfer shall release a prior Landlord from
     any liability hereunder that accrued during the period of such
     prior Landlord's ownership of the Leased Premises.

  a)  Landlord warrants and represents that, as of the
  Commencement Date and during the Term:

       i)   Landlord (1) is a limited partnership duly formed,
       validly existing and in good standing under the law of the
       State of Texas, (2) is qualified to do business in and is in
       good standing under the laws of the State of Texas in which
       the Land is located (the "State"), and (3) has full right and
       power to execute and perform this Lease and to grant the
       estate demised herein; Landlord's General Partner, DSL
       Management, L.L.C., a Texas limited liability company
       ("General Partner"), who is acting as its signatory for this
       Lease, is duly authorized and empowered to act for and on
       behalf of the General Partner, and this Lease, including its
       execution by Landlord, is enforceable and binding upon
       Landlord and has been authorized by all requisite action on
       behalf of the General Partner. General Partner (i) is a
       limited liability company duly formed, validly existing and
       in good standing under the law of the State of Texas, (2) is
       qualified to do business in and is in good standing under the
       laws of the State of Texas in which the Land is located (the
       "State"), and (3) has full right and power to execute and
       perform this Lease and to grant the estate demised herein;
       General Partner's President, who is acting as General
       Partner's signatory for this Lease is duly authorized and
       empowered to act for and on behalf of General Partner. Upon
       request by Tenant, Landlord shall furnish to Tenant (i)
       written evidence of Landlord's authority to complete this
       transaction and empowering those executing documents on
       Landlord's behalf to do so and (ii) Landlord's certificate of
       good standing in the State;

       ii)  Landlord is either currently the owner of the Land in
       fee simple absolute or will become such owner; this Lease is
       and shall be a first lien on the Leased Premises subject only
       to any "Mortgage" (as hereinafter defined) or "Ground Lease"
       (as  hereinafter defined) to which this Lease may  be
       subordinated as set forth in Section 20 below; and neither
       the "Permitted Encumbrances" (as hereinafter defined) nor any
       other encumbrances grant any other party the rights to use
       any parking spaces located on the Leased Premises;

       iii) Neither the execution and delivery by Landlord of this
       Lease nor the performance by Landlord of the terms hereof
       will (x) conflict with or violate any other agreement or
       instrument or any writ, order or decree to which Landlord is
       a party or by which Landlord is bound or (y) be precluded by
       or cause a breach of any agreement, mortgage, contract or
       other instrument or document to which Landlord is a party or
       which encumbers or otherwise adversely affects the Leased
       Premises; and

       iv)  This Lease represents the valid, binding obligation of
       Landlord, enforceable against Landlord in accordance with its
       terms.
    b)  Landlord warrants and represents that, as of the
    Commencement Date:

         i)   The Leased Premises is presently, or will be prior to
         commencement of the Work, properly subdivided in compliance
         with all applicable laws and regulations and constitutes a tax
         parcel separate from any other real property; the zoning
         classification of, and all other governmental regulations
         pertaining  to, the Leased Premises shall permit  the
         construction by Landlord as provided by this Lease and the use
         of the Leased Premises by Tenant in accordance with the terms
         of this Lease; and the number of parking spaces totaling
         thirty-six (36) spaces as shown on the Site Plan shall be
         provided in the parking area;

         ii)  Landlord's fee simple interest in the Leased Premises is
         free and clear of any mortgages, deeds, encumbrances,
         declarations, easements, agreements, leases, tenancies,
         restrictions, rules or regulations which affect or restrict or
         could affect or restrict the use or intended use of the Leased
         Premises by Tenant, its employees, customers, invitees,
         successors and/or assigns, except those matters set forth on
         Exhibit  "H" attached hereto and entitled  "Permitted
         Encumbrances" (the "Permitted Encumbrances"); and

         iii) The execution and delivery of this Lease by Landlord has
         been duly authorized by all required corporate action.

     c)  Tenant represents and warrants to Landlord that:

         i)   Tenant (1) is a corporation duly formed, validly existing
         and in good standing under the law of the Commonwealth of
         Virginia and (2) is qualified to do business in and is in good
         standing under the laws of the State;

         ii)  Neither the execution by Tenant of this Lease nor the
         performance by Tenant of the terms hereof will conflict with
         or violate any other agreement or instrument or any writ,
         order or decree to which Tenant is a party or by which Tenant
         is bound; and

         iii) The execution and delivery of this Lease by Tenant has
         been duly authorized by all required corporate action, and
         this Lease represents the valid, binding obligation of Tenant,
         enforceable against Tenant in accordance with its terms.

7)   TENANT'S  FURNISHINGS,  FIXTURES,  EQUIPMENT  AND   OTHER
PERSONAL  PROPERTY. Tenant, at its sole cost and expense,  may
supply  and install anywhere in or on the Leased Premises  any
furnishings,   fixtures,  equipment  and/or   other   personal
property, including a satellite dish and any necessary  cables
or  supporting equipment (collectively, "Personal  Property"),
which  it  deems necessary for its use of the Leased Premises;
provided,  however,  that  Tenant shall  repair,  at  its  own
expense, any damage to the Leased Premises occasioned by  such
installation.  Landlord and Tenant recognize that  Tenant  may
commence  the installation of its Personal Property  prior  to
the   Completion   Date,  as  defined  in   the   Construction
Provisions. Any
such  Personal Property supplied and installed in  the  Leased
Premises, except that which is permanently attached, shall  be
and remain the property of Tenant. Such delivery, installation
and  placement of Personal Property in the Leased Premises  by
Tenant   shall  not  constitute  final  acceptance  or  actual
possession  of  the Leased Premises by Tenant, and  shall  not
obligate  Tenant to pay Basic Rent or other charges  prior  to
the  Rent Commencement Date set forth in Section 4(b) of  this
Lease.  It  is  agreed by Landlord and Tenant  that  upon  and
during  delivery of such Personal Property by Tenant, Landlord
shall provide Tenant with a secure structure and access to the
Leased Premises.

Any damage to the Leased Premises occasioned by the removal of
such Personal Property shall be repaired by Tenant at its sole
cost  and  expense, unless such damage is caused by Landlord's
negligence,  intentional misconduct, or willful acts,  or  the
negligence,  intentional  misconduct,  or  willful   acts   of
Landlord's  agents or contractors, in which event such  damage
shall  be  repaired by Landlord at its sole cost and  expense.
Risk  of  loss as to such Personal Property shall remain  with
Tenant at all times prior to and during the Terra Tenant shall
indemnify, defend, and save Landlord harmless from and against
all   claims,  suits,  liabilities  and  expenses,   including
reasonable attorneys' fees, for damage or injury to persons or
property    directly   resulting   from   Tenant's   negligent
installation  of  Personal Property in  the  Leased  Premises,
except  to  the  extent that such claim,  suit,  liability  or
expense  is  caused,  in  whole  or  in  part,  by  Landlord's
negligence,  intentional misconduct, or willful acts,  or  the
negligence,  intentional  misconduct,  or  willful   acts   of
Landlord's employees, agents or contractors.

8) TENANT'S ALTERATIONS AND SIGNS.

     a)  Tenant  shall have the right, but not the obligation,
     at  its  sole  cost and expense and at any time,  without
     Landlord's  consent, to make non-structural improvements,
     alterations  and  replacements in, on or  to  the  Leased
     Premises.   Tenant   agrees   that   such   improvements,
     alterations, additions and replacements will (i) be  made
     in  a good and workmanlike manner by licensed contractors
     and  (ii)  comply  with all applicable laws,  and  Tenant
     shall  defend, indemnify and hold Landlord harmless  from
     any   and  all  costs,  damages  and  expenses  resulting
     therefrom, except to the extent that such costs,  damages
     or   expenses   are  caused  by  Landlord's   negligence,
     intentional  misconduct, or acts  or  omissions,  or  the
     negligence, intentional misconduct, or acts or  omissions
     of  Landlord's  agents or contractors. Tenant  shall  not
     make  any structural improvements, alterations, additions
     or   replacements  without  first  obtaining   Landlord's
     written  consent  thereto, which  consent  shall  not  be
     unreasonably   withheld,  conditioned  or   delayed.   If
     Landlord's   consent  is  required  and  if   plans   and
     specifications  for such work must be prepared  in  order
     for  Tenant  to obtain a building permit for  such  work,
     then  conceptual plans and specifications for  such  work
     shall  be  provided to Landlord prior to commencement  of
     any such work. Landlord shall be deemed to have consented
     to  such  work  if  written notice of  disapproval,  with
     reasons  specified,  is  not received  by  Tenant  within
     fifteen  (15)  days following Tenant's delivery  of  such
     plans  and  specifications to Landlord. Without  cost  or
     expense to Landlord, Landlord shall cooperate with Tenant
     in  Tenant's  efforts  to obtain any  and  all  licenses,
     building  permits,  certificates of  occupancy  or  other
     governmental   approvals  which  may   be   required   in
     connection   with  any  such  improvements,  alterations,
     additions and replacements, and Landlord shall execute,
     acknowledge and deliver any documents reasonably required
     in furtherance of such purposes.

     b)   Tenant may erect, at its cost and in its sole discretion,
     an announcement sign on the Leased Premises, the location,
     size and style of which shall be in Tenant's sole and absolute
     discretion, announcing Tenant's future business at the Leased
     Premises. Tenant may, at its cost and in its sole discretion,
     but subject to compliance with all applicable governmental
     regulations, install (1) any and all exterior signs on the
     exterior walls and/or roof of the Leased Premises as it deems
     necessary and (2) any and all pylon or monument signs on the
     Leased Premises as it deems necessary. Tenant's ability to
     erect at the Leased Premises no less than 133.66 square feet
     of exterior signage in the color(s), size(s) and location(s)
     shown on Exhibit B, Attachment II (the "Elevations")  and
     Exhibit "I-1" and no less than a 147 square foot pylon sign in
     the color(s), size(s) and location(s) shown in Exhibit "I-2"
     attached hereto and on the Site Plan is a condition precedent
     to  its obligations under this Lease and, in that regard,
     Tenant shall apply for all necessary governmental permits for
     its desired signage within a reasonable period of time after
     the  Commencement Date of this Lease and shall reasonably
     diligently pursue such application thereafter. In the event
     Tenant does not receive all necessary governmental permits for
     Tenant's desired signage by the date Landlord has received the
     "Approvals" (as defined in Section 3(a) of the Construction
     Provisions), Tenant, at its option, may terminate this Lease
     by giving written notice to Landlord. If local laws do not
     permit the signage that Tenant desires to erect, then Tenant
     may,  at its expense, seek a sign code variance to  allow
     Tenant's signage. Landlord shall execute any documents, forms
     or applications necessary for Tenant to obtain all necessary
     zoning approvals, variances or special exceptions for any and
     all  of  Tenant's signage and shall promptly execute  all
     documents required in connection therewith. Notwithstanding
     anything contained herein to the contrary, Tenant shall be
     entitled,  without  Landlord's consent,  but  subject  to
     compliance with all applicable governmental regulations, to
     replace any and all of its signs with signage consistent with
     Tenant's then-current prototypical sign plans. In the event of
     an assignment or subletting as a result of which Tenant is no
     longer occupying any portion of the Leased Premises, Tenant's
     signs may be replaced by signs identifying the appropriate
     assignee or subtenant, provided that the specific design of
     such signage shall be subject to Landlord's consent, which
     consent shall not be unreasonably withheld, conditioned or
     delayed.

     c)   Any alterations made by Tenant to the Leased Premises
     shall   hereinafter  be  referred  to  as  the  "Tenant's
     Improvements." Except for Tenant's Personal Property, the
     Tenant's Improvements that are permanently attached or affixed
     to the Leased Premises shall become the property of Landlord
     upon the expiration of this Lease.

9)  ASSIGNMENT AND SUBLEASING. Tenant shall have the right  to
sublet,  assign, transfer, reassign and grant  concessions  or
licenses  (a  "Transfer") in all or any  part  of  the  Leased
Premises and any of Tenant's rights and obligations under this
Lease,  without  Landlord's consent. In the event  of  such  a
Transfer,  Tenant  shall remain liable  for  all  of  Tenant's
obligations  to  Landlord arising hereunder so  long  as  this
Lease  is  not changed, modified or amended in any respect  by
Landlord and any transferee. Should Tenant wish to be relieved
of its
obligations  hereunder  upon  a  Transfer,  Landlord's   prior
consent  to a Transfer shall be required, which consent  shall
not   be   unreasonably  withheld,  conditioned  or   delayed.
Notwithstanding  the immediately preceding  sentence,  in  the
event   any   assignee   hereunder  or  assignee's   guarantor
subsequent  to  an  assignment has a net worth  calculated  in
accordance with generally accepted accounting principles equal
to  or  greater than the net worth of Advance Stores  Company,
Incorporated, as of the end of the fiscal year  in  which  the
Commencement Date of this Lease occurs, Landlord's consent  to
such  assignment  shall  not be necessary,  and  Tenant  shall
thereafter automatically (and without any action by  Landlord)
be  relieved  of  any further obligations  under  this  Lease.
Landlord  acknowledges and agrees that Landlord's conditioning
of  the  granting of its consent upon obtaining (i) a material
amendment or modification to the terms of this Lease  or  (ii)
monetary  compensation, shall be deemed unreasonable.  In  the
event Tenant shall be reorganized, merged or consolidated with
any  other  corporation, limited liability  company  or  other
business entity, or shall sell all or substantially all of its
assets,   any  resulting  or  surviving  corporation,  limited
liability  company  or  other business entity,  or  any  other
person,  which  shall,  as  a result of  such  reorganization,
merger, consolidation or sale, succeed to substantially all of
the  assets or the business of Tenant, and which shall  assume
all  of  the liabilities and obligations of Tenant under  this
Lease,  shall  automatically  and  without  the  necessity  of
further assignment or any other act become and be Tenant under
this Lease in accordance with and subject to all of the terms,
provisions  and conditions hereof Tenant shall  give  Landlord
notice  of any Transfer, such notice to include a copy of  the
original   instrument  evidencing  such  Transfer;   provided,
however,  that Tenant's failure to provide such  notice  shall
not  be  an  "Event  of Default" (as hereinafter  defined)  by
Tenant  hereunder or give Landlord the right to  exercise  any
right or remedy against Tenant hereunder.

10) MAINTENANCE AND REPAIRS:

     a)   Subject   to   Landlord's  repair  and   restoration
     obligations  described in Sections 10(b)  and  14  below,
     Tenant shall, at its cost, during the Term (excluding the
     Construction Term):

         i)   Maintain, repair and/or replace, in good condition,
         ordinary wear and tear excepted, each and every portion of the
         Leased Premises (including, without limitation, all exterior
         signs related to safety required by law [including handicapped
         parking signs and fire lane signs] and the exterior of the
         Building) except for any items the maintenance, repair or
         replacement of which are Landlord's responsibility hereunder;
         and

         ii)  Keep the Leased Premises in a reasonably clean and neat
         condition and not permit the accumulation of any trash,
         rubbish or garbage (except as accumulated in containers
         awaiting collection or disposal) in, on or about any part of
         the Leased Premises and arrange for collection or disposal of
         accumulated trash, rubbish and garbage from the Leased
         Premises.

     b)   Notwithstanding the provisions of Section 10(a)
     above and anything contained herein to the contrary,
     Landlord shall be responsible, at its sole cost and
     expense, for the
following maintenance, repairs and/or replacements to the
Leased Premises during the Term:

    i)   any and all maintenance, repairs and/or replacements
    to  the  slab, foundation and structure of the Leased
    Premises (including, without limitation, repairing any
    cracks  or  other  damage thereto,  but  specifically
    excluding painting of the exterior walls unless painting
    is  required  as  a result of Landlord's  failure  to
    maintain, repair and/or replace the slab, foundation or
    structure as provided herein);

    ii)  any and all maintenance, repairs and/or replacements
    to the parking area of the Leased Premises in the event
    that Landlord fails to deliver the certificate as to the
    parking  area of the Leased Premises as  required  by
    Section 2(c) of the Construction Provisions or fails to
    construct the parking area in accordance with the design
    standards therefor as required by Section 2(b) of the
    Construction Provisions;

    iii) any and all maintenance, repairs and/or replacements
    to the roof of the Leased Premises, in the event that
    Landlord fails to deliver the certificates and warranties
    as to the roof of the Leased Premises required by Section
    2(e) of the Construction Provisions;

    iv)  any and all maintenance, repairs and/or replacements
    to the heating, ventilation and air-conditioning system
    of the Leased Premises (the "HVAC"), in the event that
    Landlord fails to deliver the certificates as to the HVAC
    as  required  by  Section  2(0  of  the  Construction
    Provisions;

    v)   any and all maintenance, repairs or replacements
    which  become  necessary as a  result  of  Landlord's
    negligence, intentional misconduct, or acts or omissions,
    or the negligence, intentional misconduct, or acts or
    omissions of Landlord's agents or contractors; and

    vi)  any and all maintenance, repairs and/or replacements
     to the Leased Premises which (i) are required during the
     first  Lease  Year of the Term due to  the  original
     construction of the Leased Premises or (ii) are made
     necessary by reason of defects in the workmanship or
     materials used in the construction of any portion of the
     Leased Premises (except for any portion of the Leased
     Premises that was constructed by Tenant) or are due to
     the settling of the Leased Premises.

c)  With  regard  to  those items  which  are  Landlord's
responsibility under Section 10(b) above, if an emergency
situation   occurs,  Tenant  shall  make  all  reasonable
efforts to contact Landlord by telephone or facsimile  to
advise  Landlord of the need for such maintenance, repair
or  replacement.  If after making reasonable  efforts  to
contact  Landlord,  either Tenant is  unable  to  contact
Landlord  or  if Tenant succeeds in contacting  Landlord,
and  Landlord  fails to undertake action to  correct  the
emergency situation within twenty-four (24) hours, Tenant
may perform such maintenance, repair or
replacement as Tenant deems necessary. Within thirty (30)
days after written notice from Tenant (accompanied by  an
invoice or other reasonable evidence of the costs  to  be
reimbursed), Landlord shall pay Tenant an amount equal to
the actual, out-of-pocket costs incurred by Tenant in the
performance   of   such   maintenance,   repair    and/or
replacement.  If  Landlord fails to pay  to  Tenant  such
costs within such thirty (30) day period, then Tenant may
deduct  the amount of such costs from Basic Rent and  any
other charges owed by Tenant to Landlord. For purposes of
this  Section  10(c), an "emergency  situation"  means  a
condition or state of facts which if not corrected  would
result  in further damage to the Leased Premises  or  its
contents  or  personal  injury or  damage  to  any  other
property  or  which would in any way prevent Tenant  from
conducting  its  business at the Leased Premises  in  its
customary  manner. The provisions of this  Section  10(c)
shall  control over any conflicting provisions  contained
in this Lease.

    d)   Landlord shall protect, defend, indemnify and hold
    Tenant harmless from all losses, damages, liabilities,
    costs and expenses (including reasonable attorneys' fees
    and  court costs) incurred for work, labor,  repairs,
    alterations, improvements, services and/or  materials
    supplied to the Leased Premises by or at the direction of
    Landlord, or which may occur, result from or arise out of
    the failure of Landlord during the Term to make properly
    any required repairs or perform any maintenance which is
    the responsibility of Landlord under this Lease, except
    to the extent that such losses, damages, liabilities,
    costs and/or expenses arise out of Tenant's negligence,
    intentional misconduct, or acts or omissions, or  the
    negligence, intentional misconduct, or acts or omissions
    of Tenant's agents or contractors. Tenant shall protect,
    defend, indemnify and hold Landlord harmless from all
    losses,  damages,  liabilities,  costs  and  expenses
    (including reasonable attorneys' fees and court costs)
    incurred   for  work,  labor,  repairs,  alterations,
    improvements, services and/or materials supplied to the
    Leased Premises by or at the direction of Tenant,  or
    which may occur, result from or arise out of the failure
    of Tenant during the Term to make properly any required
    repairs  or  perform  any maintenance  which  is  the
    responsibility of Tenant under this Lease, except to the
    extent that such losses, damages, liabilities,  costs
    and/or  expenses arise out of Landlord's  negligence,
    intentional misconduct, or acts or omissions, or  the
    negligence, intentional misconduct, or acts or omissions
    of Landlord's agents or contractors.

    e)   Landlord hereby assigns to Tenant all of Landlord's
    interest  in, and rights under (including  rights  to
    enforce),  all warranties and guaranties received  in
    connection with the Work or any other work, maintenance,
    repairs and/or replacements performed by, or  at  the
    direction  Landlord in, on or at the Leased Premises;
    provided,  however, that Landlord shall  retain  such
    interest  in  and  rights under such  warranties  and
    guaranties as are necessary or desirable for Landlord to
    complete any maintenance, repairs and/or replacements to
    the Leased Premises which (i) are required during the
    first  Lease  Year of the Term due  to  the  original
    construction of the Leased Premises or (ii) are  made
    necessary by reason of defects in the workmanship  or
    materials used in the construction of any portion of the
    Leased Premises (except for any portion of the Leased
    Premises that was constructed by Tenant) or are due to
    the  settling of the Leased Premises, as provided  in
    Section 10(b)(vi) above.
    11)   UTILITIES. Tenant agrees to pay the charges and  all
    required deposits for all utility services furnished to and
    used by Tenant in the Leased Premises during the Term directly
    to the utility companies providing such services, excluding
    any and all connection fees, hook-up charges, impact fees and
    other similar costs related to the initial start-up expenses
    for providing such services to the Leased Premises, all of
    which costs and expenses shall be paid by Landlord. Subject to
    applicable law, Tenant shall be entitled to select the utility
    service provider which shall provide water, electric, gas,
    cable and telecommunication services to the Leased Premises.

12)  INSURANCE: INDEMNIFICATION.

    a)   During the Term (excluding the Construction Term), Tenant
    shall,  at its sole cost and expense, obtain and  maintain
    property insurance covering the Leased Premises in an amount
    not less than the full replacement cost thereof, with such
    deductibles and retentions as determined by Tenant in its sole
    and absolute discretion. Such insurance shall be provided by
    companies authorized to do business in the State.

    b)   During the Term (excluding the Construction Term) Tenant
    shall maintain with respect to the Leased Premises a policy of
    commercial general liability insurance, which insurance shall
    stipulate limits of liability of not less than $2,000,000 each
    occurrence, single limit bodily injury and/or property damage
    combined (with such deductibles and retentions as determined
    by Tenant in its sole and absolute discretion), and shall be
    provided by companies authorized to do business in the State.

    c)   Tenant shall, within fifteen (15) days after receipt of
    written request therefor by Landlord, provide Landlord with
    (i) evidence of such property insurance and (ii) a certificate
    of such commercial general liability insurance, each naming
    Landlord and Landlord's Mortgagee as additional insureds or
    loss payees, as applicable, and providing that the applicable
    coverage  shall not be cancelled without thirty (30)  days
    notice  to the holder of such evidence or certificate,  as
    applicable.

    d)    Notwithstanding  anything to the contrary  contained
    herein, Tenant shall have the right to self-insure against any
    of the risks or portions thereof set forth in this Section 12,
    provided Tenant then has a reported net worth (calculated in
    accordance with generally accepted accounting principles), as
    of the end of Tenant's most recent quarterly reporting period,
    of not less than One Hundred Million Dollars ($100,000,000).

    e)    Landlord shall maintain with respect to  the  Leased
    Premises a policy of commercial general liability insurance,
    which insurance shall stipulate limits of liability of not
    less  than $2,000,000 each occurrence, single limit bodily
    injury and/or property damage combined, and shall be provided
    by  companies authorized to do business in the State. Such
    policies  of insurance shall name Tenant as an  additional
    insured. Landlord shall, within a reasonable period of time
    after receipt of written request therefor by Tenant, provide a
    certificate of such commercial general liability insurance
    evidencing Tenant as an additional insured on such policy and
    providing that the applicable coverage shall not be cancelled
    or modified without thirty (30) days notice to the holder of
    such certificate.
    During  any  period in which Landlord  or  Tenant  is
conducting  construction activities  at,  in  or  on  the
Leased  Premises,  such party shall keep,  or  cause  its
general  contractor to keep, in full  force  and  effect,
with  regard  to the Leased Premises, in form  reasonably
acceptable  to  the  other party, at  least  the  minimum
insurance coverages set forth below:

    i)   Worker's Compensation - Statutory Limits; Employers
    Liability -$2,000,000;

    ii)  Automobile Liability for all vehicles with limits of
    $1,000,000; and

    iii) Commercial General Liability to include premises
    operations and products/completed operations coverage
    with limits of $3,000,000.

    Additionally,  such party shall keep or  require  its
general  contractor to keep in full force  and  effect  a
policy  of  builder's  risk insurance  covering  loss  or
damage  to  the Leased Premises for the full  replacement
cost of all such construction. To the fullest extent  the
other  party  has an insurable interest,  such  liability
policy  shall  name  the  other party  as  an  additional
insured  and  such builder's risk policy shall  name  the
other party as a loss payee.

    g)   Any insurance coverage enumerated in this Lease may
    be effected by a blanket policy or policies of insurance
    or under so-called "multi-peril" or "package" insurance
    policies, provided that the total amount of insurance
    available  with  respect to the Leased  Premises  and
    Tenant's or Landlord's liability hereunder shall be at
    least the equivalent of separate policies in the amounts
    herein  required, and provided further that in  other
    respects any such policy or policies shall comply with
    the  provisions of this Lease. Landlord shall not  be
    entitled to self-insure any of the insurance coverages
    recited herein. An "umbrella" policy may be provided and
    utilized by either party to increase the limit provided
    by any individual or blanket policies in lower amounts,
    and the combined occurrence and aggregate limits provided
    by all such policies with respect to the Leased Premises
    and Tenant's or Landlord's liability hereunder shall be
    satisfactory provided that the terms and conditions of
    such policies otherwise comply with the provisions of
    this Lease.

    h)   Notwithstanding anything to the contrary contained
    herein, Landlord and Tenant hereby release each other, to
    the extent of their agreed-upon insurance coverage, from
    any and all liability for any loss or damage caused by
    fire or any other casualty insured against, even if such
    fire or other casualty shall be brought about by  the
    fault or negligence of the other party, or any persons
    claiming under such other party.

    i)    Landlord  hereby agrees to exonerate,  protect,
    defend,  indemnify and hold Tenant and its  officers,
    directors,   stockholders,  members,   beneficiaries,
    partners, representatives, agents and employees harmless
    from and against any and all losses, damages, claims,
    suits  or  actions,  judgments and  costs  (including
    reasonable attorneys' fees) arising out of
     any  injury to or death of persons or damage to  property
     on or about the Leased Premises caused by the intentional
     or  negligent  acts  or  omissions  of  Landlord  or  its
     employees,  agents  or  contractors.  Tenant  agrees   to
     exonerate,  protect, defend, indemnify and hold  Landlord
     and   its  officers,  directors,  stockholders,  members,
     beneficiaries,  partners,  representatives,  agents   and
     employees  harmless from and against any and all  losses,
     damages,  claims, suits or actions, judgments  and  costs
     (including reasonably attorneys' fees) arising out of any
     injury to or death of persons or damage to property on or
     about  the  Leased Premises caused by the intentional  or
     negligent  acts or omissions of Tenant or its  employees,
     agents or contractors.

13) REAL ESTATE TAXES.

     a)   Commencing on the Rent Commencement Date, during the
     Term, Tenant shall reimburse Landlord for all "Real Estate
     Taxes" (as hereinafter defined). If the Rent Commencement Date
     occurs or the Term terminates during any part of a calendar
     year, Tenant shall be responsible for such Real Estate Taxes
     for only that portion of the calendar year for which Tenant is
     responsible to pay Basic Rent hereunder. However, the amount
     of Real Estate Taxes attributable to the Leased Premises for
     which Tenant shall reimburse Landlord in part shall be less
     any abatements, discounts or refunds thereon. In paying such
     Real Estate Taxes, Landlord agrees to take full advantage of
     any and all available discounts, and Tenant shall not  be
     obligated to pay any portion of any penalty or interest for
     delinquent payment, nor shall Tenant be obligated to pay any
     portion of sums owed by Landlord due to failure of Landlord to
     take  advantage  of any discount. Tenant shall  reimburse
     Landlord for such Real Estate Taxes within thirty (30) days of
     receipt from Landlord of a receipted tax bill (or in  the
     alternative copy of the tax bill and a copy of Landlord's
     check to the appropriate governmental agency or authority)
     evidencing Landlord's payment thereof to the taxing authority.

     b)   Tenant shall have the right, at Tenant's sole expense, to
     contest the amount or validity, or otherwise seek an exemption
     or abatement, of any Real Estate Taxes or to seek a reduction
     in the valuation of the Leased Premises assessed for purposes
     of Real Estate Taxes by appropriate proceedings diligently
     conducted in good faith, provided that (i) Tenant shall first
     have notified Landlord in writing of its intent to do so and
     (ii) such contest will not result in the foreclosure, loss or
     forfeiture of the Leased Premises, or any portion thereof. In
     any instance where any such action or proceeding is being
     undertaken  by Tenant, Landlord shall (i) cooperate  with
     Tenant,  (ii) execute any and all documents  required  in
     connection therewith and (iii) if required by any law, rule or
     regulation of the taxing authority, shall join with Tenant in
     the  prosecution  thereof. Upon the  termination  of  the
     proceedings set forth above (unless the taxing  authority
     requires that Real Estate Taxes be paid under protest prior to
     commencement of such proceedings), Tenant shall  pay  the
     applicable Real Estate Taxes as finally determined in such
     proceedings, the payment or partial payment of which may have
     been deferred during the prosecution of such proceedings.
     Tenant shall be entitled to a refund of any overpayment of
     Real  Estate  Taxes relating or allocable to  the  Leased
     Premises, as well as a reimbursement from the appropriate
     taxing authority of all costs, fees and expenses it incurs in
     such protest or reassessment.
    c)   For purposes of this Lease, the term "Real Estate Taxes"
    shall mean all general real estate taxes and assessments and
    other ad valorem taxes, rates and levies paid upon or with
    respect  to the Leased Premises for a calendar year  or  a
    portion thereof to any governmental agency or authority and
    all charges specifically imposed in lieu of any such taxes,
    but specifically excluding "roll-back" taxes or other similar
    land  use  charges. Nothing contained in this Lease  shall
    require Tenant to pay any local, county, municipal, state or
    federal income, franchise, corporate, estate, inheritance,
    succession,  capital levy, business  or  transfer  tax  of
    Landlord, or any local, county, municipal, state or federal
    income, profits, gross receipts, sales or renewal  tax  or
    charge upon the rent or other charges payable by Tenant under
    this Lease.

    d)    Landlord and Tenant understand and acknowledge  that
    certain credits, exemptions, refunds or abatements against tax
    obligations of Tenant and/or Landlord, whether with respect to
    Real Estate Taxes, personal property taxes, sales taxes, use
    taxes,  gross receipts taxes, income taxes, payroll taxes,
    value  added  taxes  or  other taxes  (collectively,  "tax
    benefits"), as well as incentive payments or credits directly
    or  indirectly  from governmental authorities  ("incentive
    payments")  may  become  available  as  a  result  of  the
    construction, use, occupancy or conduct of Tenant's business
    at the Leased Premises, or the decision of Tenant to establish
    and/or operate a business at the Leased Premises. The full
    amount of such tax benefits and incentive payments shall be
    the property of Tenant. In the event that any such tax benefit
    or incentive payment is paid to, accrues to the benefit of, or
    is otherwise received by Landlord, at Tenant's option:

         i)   Landlord shall immediately account for and pay over the
         full amount of such tax benefit or incentive payment to
         Tenant; or

         ii)  Tenant may offset the full amount of such tax benefit or
         incentive payment against Basic Rent and any other charges
         payable by Tenant to Landlord hereunder.

    Landlord  shall  cooperate with  Tenant  and  execute  any
    documents, forms, or applications as reasonably  requested
    by  Tenant  in  order to enable Tenant to obtain  any  tax
    benefits  or  incentive  payments  directly  available  to
    Tenant.

14) DAMAGE OR DESTRUCTION.

    a)  If,  during  the Term, a fire or other casualty  shall
    render  the  whole or any portion of the  Leased  Premises
    untenantable, in Tenant's reasonable judgment, and if,  in
    Tenant's  reasonable  judgment, the  Leased  Premises  can
    reasonably  be  expected to be restored  to  substantially
    the  same  condition existing immediately  prior  to  such
    casualty  within one hundred eighty (180)  days  from  the
    date  of  such casualty, Landlord shall repair and restore
    the  Leased  Premises to substantially the same  condition
    existing  immediately prior to such casualty  within  such
    one  hundred  eighty  (180) day  period  (subject  to  any
    delays  caused by a "Force Majeure Event" [as  hereinafter
    defined]). In
the  event  that  Landlord timely completes  such  repair
and/or restoration, this Lease shall remain in full force
and  effect.  During the period during which such  repair
and/or  restoration  is being performed,  rent  otherwise
payable hereunder shall abate in the proportion that  the
area  of the Leased Premises rendered untenantable  bears
to  the  entire  area  of the Leased Premises  until  the
Leased  Premises  is  completely restored,  repaired,  or
replaced   to  the  satisfaction  of  Tenant;   provided,
however, that no rent shall be payable for any portion of
the  Leased Premises unless Tenant is able to conduct its
usual  business  on that portion of the  Leased  Premises
that remains tenantable. In the event that Landlord shall
undertake to perform such repair and restoration  of  the
Leased   Premises,  Tenant  shall,  prior   to   Landlord
commencing such repair and restoration, provide  Landlord
with
(i)  all  insurance proceeds and (ii) the amount  of  the
difference  between the insurance proceeds and  the  full
replacement cost of the Leased Premises.

    b)   If, during the Term, a fire or other casualty shall
    render the whole or any portion of the Leased Premises
    untenantable, in Tenant's reasonable judgment, and if, in
    Tenant's reasonable judgment, the Leased Premises cannot
    reasonably be expected to be repaired and restored within
    one  hundred eighty (180) days from the date of  such
    casualty, then Tenant may, by written notice to Landlord
    sent  within  sixty (60) days from the date  of  such
    casualty, terminate this Lease, which termination shall
    be effective as of the date of such casualty.

    c)   If any such fire or other casualty which renders the
    whole or any portion of the Leased Premises untenantable
    occurs during the final Lease Year of the Initial Term or
    of any Option Period, Tenant may, within thirty (30) days
    after the date of such casualty, give written notice to
    Landlord  of  Tenant's intention to extend  the  Term
    pursuant to the next applicable Renewal Option provided
    for in Section 3 of this Lease, in which event Landlord
    shall be obligated to repair and/or restore the Leased
    Premises as provided in this Section 14. In the event
    Tenant  shall not so elect to extend the  Term,  both
    Landlord  and  Tenant shall each have the  option  to
    terminate  this  Lease  by written  notice  from  the
    terminating party to the other party given within sixty
    (60) days after the date of such casualty and, in such
    event, this Lease shall terminate as of the date of such
    casualty.

    d)   If this Lease is terminated pursuant to this Section
    14, Landlord shall promptly pay to Tenant any prepaid but
    unearned Basic Rent and other charges paid by Tenant, or
    Tenant shall promptly pay to Landlord any Basic Rent and
    other charges earned and unpaid, and Landlord shall have
    the right to (i) the amount of all insurance proceeds and

(ii)  the  amount of the difference between the insurance
proceeds  and  the full replacement cost  of  the  Leased
Premises.

e)  If,  during the Term, a fire or other casualty  shall
damage or destroy any portion of the Leased Premises  but
shall  not  render  the Leased Premises untenantable,  in
Tenant's  reasonable judgment, Tenant  shall  repair  all
such  damage or destruction except to the extent fire  or
other   casualty  damages  or  destroys  any   structural
elements of the Leased Premises (as set forth in  Section
10(b)).  Landlord shall repair any damage or  destruction
to the structural elements of the Leased Premises (as set
forth  in Section 10(b)) within sixty (60) days from  the
date of such casualty; Tenant shall provide Landlord with

(i) all
     insurance   proceeds  associated  with  such  damage   or
     destruction  of  the structural elements  of  the  Leased
     Premises  and  (ii) the amount of the difference  between
     the  insurance proceeds and the cost to repair  any  such
     damage  or destruction of the structural elements of  the
     Leased Premises.

     f)  If  Landlord  is required to repair and  restore  the
     Leased   Premises  pursuant  to  this  Section  14,   the
     applicable  provisions  of  Section  2  above   and   the
     Construction  Provisions  shall  apply  with  respect  to
     Landlord's  construction work related to such  repair  or
     restoration. However, if the nature of the damage is such
     that it would be impractical to apply some or all of  the
     provisions  of Section 2 and the Construction  Provisions
     to   Landlord's   construction  work  as   mutually   and
     reasonably  determined  by  Landlord  and  Tenant,   then
     Landlord   and  Tenant  shall  agree  on  an  alternative
     provision or provisions which shall be incorporated  into
     a written agreement executed by both Landlord and Tenant.

15) CONDEMNATION.

     a)   If the whole of the Leased Premises shall be acquired or
     taken by eminent domain, condemnation or private purchase
     under threat thereof or in lieu thereof, including, without
     limitation, the physical occupation of the Leased Premises or
     any  portion thereof or the filing of eminent  domain  or
     condemnation papers by appropriate authorities (a "Taking"),
     then this Lease and the Term shall automatically cease and
     terminate as of the date on which the condemning authority or
     private purchaser shall have the right to possession of the
     Leased Premises or any portion thereof (the "Taking Date").

     b)   If any part of the Leased Premises shall be so taken and
     such partial Taking shall render that portion not so taken
     unsuitable,  as  determined by Tenant in  its  reasonable
     discretion, for the purposes for which the Leased Premises
     were leased, or if any access, curb cut or other access point
     on or to the Leased Premises is modified in a manner which
     adversely and materially affects Tenant's business or is lost
     as a result of any Taking, then Tenant shall have the right to
     terminate this Lease by written notice sent to Landlord within
     twelve (12) months after the Taking Date. If any part of the
     Leased Premises shall be so taken and this Lease shall not be
     so terminated, then this Lease shall continue in full force
     and effect except that the Basic Rent and all other charges
     payable by Tenant shall be reduced in the same proportion that
     the gross leasable area of the portion of the Leased Premises
     that has been taken bears to the total gross leasable area of
     the entire Leased Premises and Landlord shall, within thirty
     (30) after the Taking Date, commence to make all necessary
     repairs and alterations to restore the untaken portion of the
     Leased Premises to as near its former condition as practicable
     such  that the untaken portion of the Building will be  a
     complete architectural unit. In its performance of such repair
     and/or restoration work pursuant to this Section 15,  the
     applicable provisions of Section 2 above and the Construction
     Provisions shall apply with respect to Landlord's construction
     work related to such repair or restoration. However, if the
     nature of the damage is such that it would be impractical to
     apply some or all of the provisions of Section 2 and  the
     Construction Provisions to Landlord's construction work as
     mutually and reasonably determined by
    Landlord and Tenant, then Landlord and Tenant shall  agree
    on  an alternative provision or provisions which shall  be
    incorporated  into a written agreement  executed  by  both
    Landlord and Tenant.

    c)   If this Lease is terminated as provided in this Section
    15,  Landlord shall promptly pay to Tenant any prepaid but
    unearned  Basic  Rent and other charges, or  Tenant  shall
    promptly pay to Landlord any Basic Rent and other  charges
    earned and unpaid.

    d)   In the event of a Taking, whether permanent or temporary,
    of any pylon or monument sign (as contemplated by Section 8(b)
    above) on which Tenant has installed identification panels,
    Tenant shall provide a substitute site (reasonably acceptable
    to Tenant) therefor, within a reasonable period of time after
    such Taking. If Landlord shall receive compensation from the
    condemning  authority for such Taking of  any  such  sign,
    Landlord shall pay said compensation to Tenant within fifteen
    (15) days after Landlord's receipt thereof.

    e)   In the event of a Taking as described in this Section 15,
    Tenant  shall be entitled to claim compensation  from  the
    condemning authority for (i) the value of its leasehold estate
    in the Leased Premises and (ii) damages occurring by reason of
    the Taking, including but not limited to loss of good will or
    future profits or in respect of Tenant's Personal Property,
    the  cost  or expense for the repair and removal  of  such
    Personal Property, moving or relocation expenses, and  any
    other items to which Tenant may be entitled under applicable
    law.

16) TENANT'S DEFAULT:

    a)   The following shall constitute an event of default by
    Tenant hereunder (an "Event of Tenant Default");

         i)   Tenant's failure to make any payment of money required by
         this Lease (including, without limitation, Basic Rent or Real
         Estate Taxes) (subject to Tenant's right of good faith
         contest), within ten (10) days after Tenant's receipt of
         written notice from Landlord to Tenant that same is overdue;
         or

         ii)  Tenant's failure to observe or perform any other material
         provision of this Lease within thirty (30) days after Tenant's
         receipt of written notice from Landlord to Tenant specifying
         such default and demanding that the same be cured; provided
         that if such default cannot with due diligence be wholly cured
         within such thirty (30) day period, Tenant shall have such
         longer period as is reasonably necessary to cure the default,
         so long as Tenant proceeds promptly to commence the cure of
         same within such thirty (30) day period and diligently
         prosecutes the cure to completion.

    b)  Upon the occurrence of an Event of Tenant Default,  at
    Landlord's  option,  in addition  to  any  and  all  other
    remedies  which  it  may  have at  law  and/or  in  equity
    (except as provided below), and without its actions  being
    deemed an election of remedies or a
     cure of Tenant's default, Landlord may (a) terminate this
     Lease  or  (b) re-enter the Leased Premises  by  judicial
     proceeding, expel Tenant and remove all property from the
     Leased  Premises, and relet the Leased  Premises  at  the
     best  possible  rent  obtainable  and  receive  the  rent
     therefrom.  In  the  event  Landlord  relets  the  Leased
     Premises,  all  rentals received  by  Landlord  shall  be
     applied, first, to the payment of any indebtedness  other
     than  Basic  Rent  and other charges due  hereunder  from
     Tenant  to Landlord; second, to the payment of any  costs
     and  expenses  of such reletting, excluding tenant  upfit
     costs;  third,  to the payment of Basic  Rent  and  other
     charges  due  and unpaid hereunder; and the  residue,  if
     any, shall be held by Landlord and applied in payment  of
     any future Basic Rent and/or other charges due and unpaid
     hereunder. Tenant shall remain liable to Landlord for the
     deficiency, if any, between the Basic Rent and all  other
     charges payable by Tenant pursuant to this Lease and  the
     rent  and  all  other charges payable by the  new  tenant
     pursuant  to  the  new  lease  obtained  by  Landlord  on
     reletting. In the event this Lease shall be terminated as
     provided   above,  Landlord,  its  agents,  servants   or
     representatives may immediately or at any time thereafter
     peaceably  re-enter and resume possession of  the  Leased
     Premises  and remove all persons and property  therefrom,
     by  summary dispossession proceedings. The various rights
     and  remedies reserved to Landlord herein are cumulative,
     and  Landlord  may  pursue any and all  such  rights  and
     remedies, whether at the same time or otherwise  (to  the
     extent not inconsistent with specific provisions of  this
     Lease); provided that Landlord shall have the duty in any
     instance  to  mitigate its damages with  respect  to  any
     Event  of Tenant Default. Notwithstanding anything herein
     to  the contrary, (i) Landlord expressly waives its right
     to  forcibly dispossess Tenant from the Leased  Premises,
     whether peaceably or otherwise, without judicial process,
     such   that  Landlord  shall  not  be  entitled  to   any
     "commercial   lockout"  or  any   other   provisions   of
     applicable  law  which  permit  landlords  to  dispossess
     tenants from commercial properties without the benefit of
     judicial review and (ii) Landlord shall in no event  have
     any  right  to  accelerate the Basic Rent  or  any  other
     charges payable by Tenant hereunder.

17) LANDLORD'S DEFAULT.

     a)  The following shall constitute an event of default by
     Landlord hereunder (an "Event of Landlord Default"):

         (i)  Landlord's failure to make any payments of money due
         Tenant or any third party, including but not limited to the
         payment of the brokerage commissions pursuant to Section 29(s)
         below, within ten (10) days after the receipt of written
         notice from Tenant that same is overdue; or

         (ii) Landlord's failure to perform any nonmonetary obligation
         of Landlord hereunder within thirty (30) days after receipt of
         written notice from Tenant to Landlord specifying such default
         and demanding that the same be cured; provided that, if such
         default cannot with due diligence be wholly cured within such
         thirty (30) day period, Landlord shall have such longer period
         as may be reasonably necessary to cure the default, so long as
         Landlord proceeds promptly to commence the cure of same within
         such thirty (30) day period and diligently prosecutes the cure
         to completion and provided further that in the case of an
         emergency, Tenant shall be required to give only such
         notice as is reasonable under the circumstances.

    b)  Upon  the occurrence of an Event of Landlord  Default,
    at  Tenant's  option, in addition to  any  and  all  other
    remedies  which it may have at law and/or in  equity,  and
    without  its actions being deemed an election of  remedies
    or  a cure of Landlord's default, Tenant may do all or any
    of the following:

         (i)  pay or perform such obligations and offset Tenant's
         actual cost of performance, including any and all transaction
         costs and attorneys' fees, against the Basic Rent and any and
         all other amounts and charges due Landlord hereunder; or

         (ii) withhold Basic Rent and any other payments due to
         Landlord under this Lease until such Event of Landlord
         Default, transaction costs and attorneys' fees specified in
         subsection (i) above, is cured by Landlord; or

         (iii)     terminate this Lease and/or sue for damages,
         including transaction costs and attorneys' fees specified in
         subsection (i) above.

         With   respect  to  a  breach  by  Landlord  of   the
    provisions  of Section 18 below, Tenant shall be  entitled
    to  any  remedies provided therein, in addition  to  those
    remedies provided herein.

         The  various rights and remedies reserved  to  Tenant
    herein  are cumulative, and Tenant may pursue any and  all
    rights   and  remedies,  whether  at  the  same  time   or
    otherwise.  Notwithstanding  the  foregoing,  a  delay  by
    Tenant  in  exercising its cure rights or  other  remedies
    hereunder  shall not be deemed a Force Majeure  Event  for
    purposes   of   extending  the  date(s)  established   for
    performance by Landlord.

    c)  Any  offset made by Tenant against Basic Rent  or  any
    other  charges otherwise due by Tenant hereunder shall  be
    without  liability  to  Tenant,  shall  not  constitute  a
    default  on  behalf  of Tenant and shall  not  affect  any
    other  rights or remedies Tenant may have against Landlord
    for failure to comply with the provisions herein.

18) NON-COMPETITION.

    a)  Neither Landlord nor any stockholder, member, partner,
    beneficiary,  successor, assign, personal  representative,
    heir,  subsidiary  or  affiliate  of  Landlord,  nor   any
    person(s)  or  entity(ies) having  a  direct  or  indirect
    interest  in  Landlord, shall, for as long as  this  Lease
    remains   in   force  and  effect,  either   directly   or
    indirectly,  own,  occupy or operate, or  sell,  lease  or
    otherwise transfer to any person or entity, or permit  any
    person  or entity to occupy, any land, building,  premises
    or  space,  whether presently owned or hereafter acquired,
    located  within two (2) miles of the Leased  Premises  for
    the  purpose of (i) conducting thereon a business  similar
    to  that  being conducted by Tenant on the Leased Premises
    or  (ii) the sales, display or rental of automotive parts,
    accessories, supplies
    and/or  maintenance items. In addition,  neither  Landlord
    nor   any   stockholder,  member,  partner,   beneficiary,
    successor,   assign,   personal   representative,    heir,
    subsidiary or affiliate of Landlord, nor any person(s)  or
    entity(ies)  having  a  direct  or  indirect  interest  in
    Landlord,  shall  lease,  sell or  otherwise  transfer  or
    convey  any  such  premises adjacent to and/or  contiguous
    with  the  Leased  Premises  without  imposing  thereon  a
    restriction to secure compliance herewith, or  permit  any
    tenant  or  occupant  of any such  premises  or  any  part
    thereof  to  sublet or assign in any manner,  directly  or
    indirectly,   any  part  thereof  to  any  person,   firm,
    corporation  or other entity engaged in any such  business
    described  above,  without the prior  written  consent  of
    Tenant,  which  consent  may  be  withheld  by  Tenant  in
    Tenant's sole discretion.

    b)  Tenant  shall, in the event that there is a breach  of
    any  of  the  provisions  of this  Section  18,  have  the
    following  rights  and remedies, none of  which  shall  be
    exclusive  of  the  other remedies  or  any  other  remedy
    otherwise available to Tenant:

          i)   Tenant may institute proceedings to enjoin the violation;

          ii)  If such breach continues for a period of thirty (30) days
         after written notice thereof shall have been given by Tenant
         to Landlord, Tenant may, at any time thereafter, elect to
         terminate this Lease and, on such election, this Lease shall,
         on the date stated in the notice of such election, be
         terminated, and Tenant shall be released and discharged of and
         from any and all further liability hereunder;

          iii) Landlord shall protect, defend, indemnify and hold Tenant
         harmless from all losses, damages, liabilities, costs and
         expenses (including, without limitation, reasonable attorneys'
         fees and court costs) sustained or incurred in connection with
         any proceedings instituted by Tenant as a result of any such
         breach.

19) ENVIRONMENTAL:

     a)   As used herein, the term "Hazardous Substance" includes
     petroleum,  natural  or synthetic gas  products  and  any
     hazardous, toxic or dangerous waste, pollutant, contaminant,
     substance or material defined as such in, or for the purposes
     of, the "Enviromnental Laws" (as hereinafter defined). For the
     purposes of this Lease, the term "Environmental Laws" means
     any environmental, health or safety law, rule, regulation,
     ordinance, order or decree, including, without limitation, the
     Comprehensive  Environmental Response,  Compensation  and
     Liability Act, as amended, the Resource Conservation  and
     Recovery Act, as amended, any "Superfund" or "Super Lien" law
     or any other federal, state, county or local statute, law,
     ordinance, code, rule, regulation, order or decree regulating,
     relating to or imposing liability or standards of conduct
     concerning any petroleum, natural or synthetic gas products
     and/or  hazardous, toxic or dangerous waste pollutant  or
     contaminant, substance or material as may now or any time
     hereinafter be in effect.

     b)   Landlord represents, warrants and covenants that:
    (i)  to the best of Landlord's knowledge and belief, the
    Leased Premises is in compliance with all Environmental
    Laws and no Hazardous Substances have been released or
    threatened to be released upon, in, at, around or under
    the Land or off-site locations within one (1) mile of the
    Land that are owned, operated or controlled by Landlord
    or any party related to Landlord to any degree, except as
    disclosed in the Phase I Report (as defined in Section
    19(c));

    (ii)  to the best of Landlord's knowledge and belief,
    there  is not now, pending or threatened, any action,
    suit, investigation or proceeding against Landlord or the
    Land, or against any other property relating to the Land,
    seeking to enforce a right or remedy under common law or
    under any of the Environmental Laws;

    (iii)      Landlord  has, to the best  of  Landlord's
    knowledge and belief, complied with and will continue to
    comply with all applicable Environmental Laws relating to
    or  affecting the Leased Premises including,  without
    limitation, Landlord's business operations upon or off
    the Leased Premises (including, without limitation, all
    Environmental  Laws with respect to the registration,
    testing and upgrading of underground or above  ground
    storage tanks);

    (iv)  Landlord  has  not, to the best  of  Landlord's
    knowledge  and  belief, and will not  engage  in  any
    activities that constitute spilling, leaking, emitting,
    discharging, injecting, dumping or disposing  of  any
    Hazardous Substances into the environment on,  above,
    below or surrounding the Leased Premises;

    (v)  to the best of Landlord's knowledge and belief,
    there is no asbestos-containing material on the Leased
    Premises;

    (vi) Landlord has, to the best of Landlord's knowledge
    and belief, obtained, and will at all times continue to
    obtain and maintain, all required environmental licenses
    and  permits  under the Environmental Laws  that  are
    necessary for the ownership of the Leased Premises (the
    "Environmental Permits"), and Landlord has, to the best
    of Landlord's knowledge and belief, complied with and
    will comply with all other governmental or regulatory
    requirements necessary to comply with the Environmental
    Laws. Landlord is, to the best of Landlord's knowledge
    and  belief,  in full compliance with the  terms  and
    provisions of the Environmental Permits and will continue
    to  comply  with  the  terms and  provisions  of  the
    Environmental Permits; and

    (vii)     to the best of Landlord's knowledge and belief,
    there are no Hazardous Substances located on, in, at or
    under the Leased Premises that exceed action levels.

    Landlord   agrees  to  indemnify  and   hold   Tenant
harmless  from  any  and  all  claims,  damages,   fines,
judgments,  penalties,  costs,  liabilities   or   losses
(including, without limitation, any and all sums paid for
settlement of claims, attorneys' fees, consultants'
fees,  and  expert fees) arising at any time from  or  in
connection with (i) the presence or release, or suspected
presence or release, of Hazardous Substances or asbestos-
containing  materials at, in or on  the  Leased  Premises
unless  the  Hazardous Substances or  asbestos-containing
materials are present solely as a result of the breach by
Tenant  of the provisions of Section 19(d) below or  (ii)
the  violation  of  any Environmental  Laws  unless  such
violation  is  due solely as a result of  the  breach  by
Tenant  of the provisions of Section 19(d) below. Without
limiting  the foregoing, this indemnification  (i)  shall
include   any  and  all  costs  incurred   due   to   any
investigation  of  the Leased Premises  or  any  cleanup,
removal,  or  restoration mandated  by  any  governmental
authorities and (ii) shall specifically include  any  and
all costs due to Hazardous Substances that flow, diffuse,
migrate,  or  percolate into, onto, or under  the  Leased
Premises.

    c)     Tenant's  obligations  under  this  Lease  are
    conditioned upon (i) the Land being in compliance with
    all Environmental Laws and (ii) the Land being free from
    any and all Hazardous Substances. In order to determine
    preliminarily such compliance with Environmental Laws and
    the lack of Hazardous Substances, Landlord shall within
    thirty (30) days of the date of this Lease obtain and
    provide Tenant with a copy of a Phase I environmental
    report  (the  "Phase I Report")  to  be  prepared  at
    Landlord's sole cost and expense. In the event the Phase
    I Report reflects (i) any potential non-compliance with
    Environmental Laws and/or (ii) the potential existence of
    Hazardous Substances on or under the Land, and the Phase
    I Report recommends further study, Landlord shall, within
    thirty (30) days of the date of the Phase I Report, order
    a Phase H environmental report (the "Phase II Report"
    and, together with the Phase I Report, the "Environmental
    Reports") to be prepared at its sole cost and expense.
    The  Environmental Reports shall  be  prepared  by  a
    qualified environmental firm reasonably acceptable to
    Tenant  and shall be addressed and certified to  both
    Landlord and Tenant such that both Landlord and Tenant
    shall  be entitled to rely thereon. In the event  the
    Environmental Reports reflect that (i) the Land is not in
    compliance with the Environmental Laws and/or (ii) the
    Land is not free from any and all Hazardous Substances,
    this Lease shall be null and void on the later of the
    thirtieth (30th) day after Tenant receives a copy of the
    most recent of the Environmental Reports or the thirtieth
    (30th day) after the Commencement Date unless (i) Tenant
    expressly waives, in writing, such nullification or (ii)
    Landlord elects, by written notice given to Tenant prior
    to the expiration of such thirty (30) day period, to have
    the  non-compliance condition and/or the presence  of
    Hazardous Substances remediated. If Landlord elects to
    undertake any such remediation, Landlord shall diligently
    perform such remediation and this Lease shall remain in
    effect for a period of one hundred and twenty (120) days
    subsequent to the thirty (30) day period described in the
    previous sentence (the "Remediation Period") to permit
    such remediation, but if such remediation has not been
    completed by the end of the Remediation Period,  this
    Lease may be terminated by Tenant upon written notice to
    Landlord.

    d)    Tenant covenants that, during the period of its
    possession  of  the Leased Premises, Tenant  and  its
    employees shall comply with all Environmental Laws that
    are applicable to Tenant's use of the Leased Premises.
    Tenant agrees to indemnify and hold Landlord harmless
    from  any  and all claims, damages, fines, judgments,
    penalties,  costs, liabilities, or losses (including,
    without limitation, any and all sums paid for settlement
    of claims,
    attorneys'  fees,  consultants'  fees,  and  expert  fees)
    arising  at  any time solely as a result of the  violation
    by  Tenant and/or its employees of the foregoing covenant.
    Without  limitation of the foregoing, this indemnification
    shall  include any and all costs incurred by Landlord  due
    to  any  investigation  of  the  Leased  Premises  or  any
    cleanup,   removal,  or  restoration   mandated   by   any
    governmental authorities.

20) SUBORDINATION ESTOPPELS.

    a)   Simultaneously with the execution hereof, Landlord shall
    deliver to Tenant, with regard to any and all "Ground Leases"
    (as  hereinafter defined) and any and all "Mortgages"  (as
    hereinafter defined) encumbering the Leased Premises as of the
    Commencement  Date  of this Lease, a  subordination,  non-
    disturbance and attornment agreement in the form  attached
    hereto as Exhibit "C", executed by the lessor under any such
    Ground Lease ("Ground Lessor") or the holder of such Mortgage
    ("Mortgagee"), as applicable. Tenant shall have no obligation
    to  pay  Basic Rent or other charges hereunder until  such
    subordination, non-disturbance and attomment agreement(s) are
    delivered to Tenant, whereupon Tenant shall pay all accrued
    Basic Rent and other charges due hereunder at the time of such
    delivery. In addition, throughout the Term, Landlord shall
    deliver  to  Tenant  a subordination, non-disturbance  and
    attomment agreement in the form attached hereto as Exhibit "C"
    executed by any Ground Lessor or Mortgagee (as applicable)
    with regard to all future Ground Leases and Mortgages and with
    regard  to  all renewals, modifications, replacements  and
    extensions of such Ground Leases or Mortgages. Upon Tenant's
    receipt of the executed subordination, non-disturbance and
    attomment agreement, this Lease shall be subordinate to the
    corresponding Ground Lease or Mortgage. Landlord shall cause
    any present or future Mortgagee to deliver a subordination,
    non-disturbance and attomment agreement in accordance with
    this Section 20(a) at or prior to the time which the lien of
    the  Mortgage is filed against record title to the  Leased
    Premises. As used in this Lease, the term "Mortgage" shall
    mean any mortgage, deed to secure debt, deed of trust, trust
    deed or other collateral conveyance of, or lien or encumbrance
    against, all or any portion of the Leased Premises, and the
    term  "Ground Lease" shall mean any ground lease or master
    lease affecting all or any portion of the Leased Premises.

    b)    Tenant shall, at all reasonable times, upon at least
    thirty (30) days' prior written notice from Landlord, provide
    Landlord with an estoppel certificate in the form attached
    hereto as Exhibit "E."

    c)    No  Personal Property of Tenant shall be subject  to
    mortgage liens of Landlord.

21)  TENANT'S PROPERTY AND WAIVER OF LANDLORD'S LIEN.  All  of
Tenant's  Personal Property, except that which is  permanently
attached,  and  inventory  shall be and  remain  the  personal
property  of Tenant and shall be removable by Tenant any  time
prior  to the expiration or earlier termination of this Lease.
Notwithstanding  anything contained herein  to  the  contrary,
Landlord   expressly  waives  its  statutory  or  common   law
landlord's  liens (as same may be enacted or  may  exist  from
time to time) and any and all rights granted under any present
or  future  laws  to  levy or distrain for  rent  (whether  in
arrears or in advance) against the Personal
Property and further agrees to execute any reasonable
instruments evidencing such waiver, at any time or times
hereafter upon Tenant's request.

22)   TENANT'S FINANCING. Notwithstanding any other provisions
of  this  Lease, Tenant may, without Landlord's consent,  from
time  to  time, secure financing or general credit  lines  and
grant  the  lenders  thereof,  as  security  therefor,  (i)  a
security interest in the Personal Property, (ii) the right  to
enter  the  Leased  Premises  to  realize  upon  any  Personal
Property  so pledged, and/or (iii) a collateral assignment  of
Tenant's  leasehold  interest in  the  Leased  Premises,  with
rights  of  reassignment; provided, however,  such  collateral
assignment  may  be  made solely for the purpose  of  securing
Tenant's indebtedness.

23)  COMPLIANCE WITH APPLICABLE LAWS AND PERMITTED
ENCUMBRANCES. During the Term, Landlord and Tenant shall
comply with (i) all lawful requirements of the local, county
and state health boards, police and fire departments,
municipal and state authorities and any other governmental
authorities with jurisdiction over the Leased Premises and
(ii) any covenants, restrictions and requirements contained in
the Permitted Encumbrances, respecting Tenant's use and
occupancy of the Leased Premises.

    24)  NOTICES. Notices under this Lease shall be in writing and
    shall be deemed properly served and received: (i) two  (2)
    business days after being deposited in the United States mail,
    as certified or registered mail, return receipt requested,
    bearing adequate postage, (ii) one (1) business day  after
    being deposited with a reputable overnight delivery carrier
    (e.g.  Federal Express, Airborne, UPS, Express  Mail)  for
    guaranteed next day delivery with a request that the addressee
    sign a receipt evidencing delivery or (iii) upon receipt if
    personally delivered. Rejection or other refusal to accept or
    the inability to deliver because of changed address of which
    no  notice was given shall be deemed to be receipt of  the
    notice as of the date of such rejection, refusal or inability
    to deliver. Notices shall be addressed as follows:

To Landlord at:         Meyer-Lamph Development Group, LTD.
                        5111 North McColl Road
                        McAllen, TX 78504

To Tenant at:           Advance Stores Company, Incorporated
                        P.O. Box 2710
                        Roanoke, Virginia 24001
                        Attn: Real Estate Department

for overnight delivery: 5673 Airport Road
                        Roanoke, VA 24012
                        Attn: Real Estate Department

With a copy to:         Advance Stores Company, Incorporated
                        5673 AirportRoad
                        Roanoke, VA 24012
                        Attn: Legal Department

or  to  any other address furnished in writing by any  of  the
foregoing.  However,  any  change of address  furnished  shall
comply  with  the notice requirements of this Section  24  and
shall  include a complete outline of all current addresses  to
be used for all parties.

25)   NO LIENS. Should any lien of any nature be filed against
the  Leased  Premises, the party on account of  whose  actions
such  lien has been filed shall, within thirty (30) days after
receipt of written notice of such lien, cause such lien to  be
removed, or otherwise protected against execution during  good
faith  contest, by substitution of collateral, posting a  bond
therefor,  escrowing of adequate funds to cover the claim  and
related  transaction  costs or such other  method  as  may  be
permissible  under applicable title insurance regulations  and
reasonably acceptable to the other party hereto.

26)  COVENANT OF QUIET ENJOYMENT. Landlord covenants, warrants
and  represents  that  Tenant, upon  paying  the  rent  herein
reserved  and performing the covenants and agreements  hereof,
shall  peaceably and quietly have, hold and enjoy  the  Leased
Premises  during  the Term. No third party has  the  right  to
prohibit Tenant's tenancy hereunder, to prohibit Tenant or its
employees,  customers and/or invitees from  using  the  Leased
Premises  in  accordance with the terms of this  Lease  or  to
consent  to  or approve (excepting governmental agencies)  any
feature  of  the  Leased Premises or Tenant's  signage.  There
shall  be  no  restrictions of any kind during the  Term  that
could  prevent,  limit  or restrict  the  use  of  the  Leased
Premises   in  accordance  with  the  terms  of  this   Lease,
including, without limitation, (x) the operation of a retailer
of  automotive parts, accessories, supplies and/or maintenance
items  and (y) truck deliveries to the Leased Premises  during
Tenant's  business hours. No signboards or other  construction
which obstructs the view of the Leased Premises from adjoining
public  streets  shall be erected during  the  Term  upon  any
property  owned, leased, operated or otherwise  controlled  by
Landlord  or  any  stockholder, member, partner,  beneficiary,
successor,  assign, personal representative, heir,  subsidiary
or  affiliate  of  Landlord, or any person(s)  or  entity(ies)
having   a   direct   or   indirect  interest   in   Landlord.
Notwithstanding   the  foregoing,  in  the   event   that   an
intentional or negligent act or omission or violation  of  any
applicable law, rule or regulation by Tenant, or any  assignee
(to   the  extent  Tenant  remains  liable  under  this  Lease
subsequent  to  an  assignment  pursuant  to  Section  9)   or
subtenant  of Tenant results in the limitation or  restriction
of its use of the Leased Premises, neither Tenant nor any such
assignee  or subtenant shall be able to claim such  limitation
or restriction to be an Event of Landlord Default hereunder.

27)  SURRENDER; HOLDING OVER

     a)    Upon  expiration  of  this Lease,  or  its  earlier
     termination, Tenant will surrender possession of the Leased
     Premises (except for any and all of Tenant's Personal Property
     removed from the Leased Premises) to Landlord in broom clean
     condition, except for ordinary wear and tear and loss by fire
     or other casualty or by a "Taking" (as hereinafter defined).

     b)    If  Tenant shall remain in possession of the Leased
     Premises or any part thereof after expiration of the Term
     without an agreement in writing between Landlord and Tenant
     with respect thereto, Tenant shall be deemed a tenant from
     month to month upon the same terms and conditions as contained
     in this Lease. Notwithstanding the foregoing, Tenant shall pay
     Landlord, as rental on the Leased Premises for any period that
     Tenant
     remains  in  possession  of  the  Leased  Premises  after
     expiration  of the Term, an amount equal to  one  hundred
     ten  percent (110%) of the Basic Rent which Tenant  would
     otherwise have paid if the Term had not expired for  each
     month or any portion thereof in which Tenant occupies the
     Leased Premises after the expiration of the Term.

28)   EASEMENT.  Landlord  shall  be  solely  responsible  for
complying  with  all  obligations  imposed  upon  the   Leased
Premises or the owner or occupant thereof by the Easement,  as
hereinafter  defined,  including,  but  not  limited  to,  all
insurance and indemnification. Tenant shall be responsible for
maintenance under the Easement provided that Landlord delivers
the  certificate as to the parking area of the Leased Premises
as required by Section 2(c) of the Construction Provisions and
constructs  the  parking area in accordance  with  the  design
standards  therefor  as  required  by  Section  2(b)  of   the
Construction  Provisions.  Landlord  shall  promptly   provide
Tenant  with  a  copy  of  any  notice  Landlord  receives  in
connection  with the Easement. Landlord shall not  consent  to
any amendment to or modification of the Easement without first
notifying  Tenant of such proposed amendment  in  writing  and
receiving  Tenant's  written consent to such  amendment,  such
consent  not  to  be  unreasonably  withheld.  Landlord  shall
indemnify  and hold harmless Tenant from all damages,  claims,
liabilities  or  expenses,  including  reasonable  and  actual
attorney's  fees (through all levels of proceedings),  arising
in  connection with the Easement or any obligation imposed  or
right granted therein.

     29)  MISCELLANEOUS PROVISIONS.

     a)   TIME OF ESSENCE. Time is of the essence with respect to
     any time periods or dates referenced in this Lease with
     respect to both Landlord and Tenant.

     b)   CONFIDENTIALITY. Except for documents that are or will be
     a matter of public record or information which the other party
     has agreed to in writing may be disclosed, the parties hereto,
     including,  but not limited to, their heirs,  successors,
     assigns and legal representatives, agree to use their best
     reasonable efforts to maintain the confidentiality of, and
     shall  not  disclose  to any third party  (except  to  an
     accountant, attorney, potential purchaser, tax preparer for
     tax return preparation or lender to the extent such person
     agrees to be bound by this confidentiality provision), any
     terms of this Lease or any correspondence, documents and/or
     things   relating  to  this  Lease,  unless  such  terms,
     correspondence, documents and/or things are legally required
     to be disclosed. This confidentiality agreement extends to any
     developers, bankers, lawyers, accountants, employees, agents
     or any other persons acting on behalf of the parties hereto.
     Notwithstanding anything contained herein to the contrary, any
     breach of this confidentiality agreement shall constitute an
     automatic Event of Default without notice or cure provided,
     for  which either party may recover damages as their sole
     remedy and for which neither party can terminate this Lease.

     c)   IDENTITY OF INTEREST. Nothing contained in this Lease
     shall be construed to make Landlord and Tenant partners or
     joint venturers or to render either party liable for the debts
     or the obligations of the other. The only relationship created
     by this Lease between the parties is that of landlord and
     tenant.

d)     THIRD   PARTY  BENEFICIARIES.  Except  as   herein
specifically  provided, no person,  subtenant,  customer,
employee  or  invitee or any other third party  shall  be
deemed  to  be a third party beneficiary of  any  of  the
provisions herein.

e)    PARTIAL  INVALIDITY.  If  any  section,  paragraph,
subparagraph,  sentence, clause or phrase of  this  Lease
shall  be declared or judged invalid or unconstitutional,
such  declaration or adjudication shall  not  affect  the
other  sections,  paragraphs,  subparagraphs,  sentences,
clauses  or  phrases of this Lease, all  of  which  shall
remain in full force and effect.

f)  MEMORANDUM OF LEASE; DECLARATION. Simultaneously with
the execution of this Lease, Landlord shall (i) cause  to
be prepared and executed, at its expense, a short form or
memorandum of this Lease in the form attached  hereto  as
Exhibit  "F"  (the "Lease  Memorandum") and  (ii)  submit
same to Tenant. In the event a Lease Memorandum cannot be
recorded  in  the State or locality in which  the  Leased
Premises   is   located  due  to   legal   or   financial
considerations,  as  determined by  Tenant  in  its  sole
discretion,  after consultation with Landlord  concerning
the  requirements  of  said State or  locality,  Landlord
shall  (i)  cause  to be prepared and  executed,  at  its
expense,  a  Declaration  of  Covenants,  Conditions  and
Restrictions  encumbering the  Leased  Premises  and  any
other  real property owned, leased, operated or otherwise
controlled  by  Landlord  and/or  related  entities   and
located adjacent to or within two (2) miles of the Leased
Premises,  the  form  of  which Declaration  is  attached
hereto as Exhibit "G" (the "Declaration") and (ii) submit
same  to  Tenant.  Landlord  shall  record,  at  Tenant's
expense,   such  Lease  Memorandum  or  Declaration,   as
applicable.  The provisions of this Lease  shall  control
with  regard to any omissions from, or provisions  hereof
which  may  be in conflict with, the Lease Memorandum  or
the  Declaration.  Notwithstanding  the  foregoing,  this
Lease  shall  not be recorded in any office or  place  of
public  record,  and if either party  shall  record  this
Lease  or  cause or permit the same to be recorded,  such
act  may  be  treated as a breach of this Lease  by  such
recording   party.   Upon  the  expiration   or   earlier
termination  of  this  Lease, the  parties  hereto  shall
execute  a mutually acceptable agreement terminating  the
Lease Memorandum or the Declaration, as applicable.

     g)   NOTICES AFFECTING THE LEASED PREMISES. Landlord
     shall promptly forward to Tenant any notice or other
     communication affecting the Leased Premises received by
     Landlord from any owner of property adjoining, adjacent
     or nearby to the Leased Premises or from any municipal or
     governmental authority, in connection with any hearing or
     other administrative procedure relating to the use or
     occupancy of the Leased Premises or any such neighboring
     property.

     h)    HEADINGS: GENDER. The section headings are for
     convenience  and are not a part of this  Lease.  The
     masculine, feminine or neuter gender and the singular or
     plural  number shall be deemed to include the others
     whenever the context so requires or indicates.

     i)   NO WAIVER. The failure of either party to insist in
     any one or more instances upon a strict performance of
     any covenant of this Lease or to exercise any option or
     right herein contained shall not be construed as a waiver
     or relinquishment for the future
enforcement of such covenant, right or option, but the
same shall remain in full force and effect, unless the
contrary is expressed in writing by such party.

j)    FORCE  MAJEURE.  Except as  otherwise  specifically
contemplated in this Lease, in the event that Landlord or
Tenant  shall  be  delayed or hindered in,  or  prevented
from,  the  performance of any act required hereunder  by
reason of strikes, lockouts, labor troubles, inability to
procure  materials, delay by the other party, failure  of
power    or    unavailability   of   utilities,    riots,
insurrection, war, terrorism or other reason  of  a  like
nature  not  the  fault of such party or not  within  its
control (each, a "Force Majeure Event"), then performance
of such act shall be excused for the period of delay, and
the  period for the performance of any such act shall  be
extended  for a period equivalent to the period  of  such
delay;  provided, however, the party claiming a delay  by
reason  of  a Force Majeure Event shall notify the  other
party  within five (5) business days following the  onset
of the Force Majeure Event.

k)    PRE-EXISTING CONDITIONS. Nothing contained in  this
Lease  shall  be  construed to impose any  responsibility
upon  Tenant  with regard to any loss,  injury  or  other
claim  arising as a result of any condition that  existed
on  the  Leased  Premises at the time of Tenant's  taking
possession thereof.

1)  NO OFFER. Tenant's delivery to a prospective landlord
of  this  form of Lease shall not be deemed an  offer  to
lease  even  though such form may have been completed  in
every respect.

m)   CHOICE OF LAW. This Lease shall be construed in
accordance with and governed by the laws of the State.

n)    BINDING  EFFECT.  This Lease  shall  inure  to  the
benefit  of  and be binding upon Landlord and Tenant  and
their respective heirs, executors, legal representatives,
successors and assigns.

o)    NO  CONSTRUCTION AGAINST DRAFTING PARTY. This Lease
has been prepared by Tenant and its professional advisors
and  reviewed by Landlord and its professional  advisors.
Tenant, Landlord and their separate advisors believe that
this  Lease is the product of all of their efforts,  that
it  expresses their agreement, and that it should not  be
interpreted  in  favor of either Tenant  or  Landlord  or
against either Tenant or Landlord merely because of their
efforts in preparing it.

I))  ENTIRE  AGREEMENT; AMENDMENT.  This  Lease  and  the
attached exhibits constitute the entire agreement between
Landlord  and Tenant with respect to the Leased Premises,
and all negotiations, considerations, representations and
understandings between Landlord and Tenant prior  to  the
execution of this Lease are incorporated herein.  Neither
this  Lease  nor  any of its provisions nor  any  of  the
documents  creating the Permitted Encumbrances set  forth
in   "Exhibit  H"  may  be  amended,  modified,   waived,
discharged  or  terminated except  by  an  instrument  in
writing signed by the parties hereto.

q)   TRADEMARKS AND TRADE NAMES. All trademarks, trade
names, service marks, signs and all other marks of
identification used by Tenant in its business shall at
all times
remain  the  exclusive property of Tenant,  and  Landlord
shall  have  no right, interest in, or title  to  any  of
Tenant's trademarks, trade names, service marks, signs or
other marks -of identification.

r)    HOLIDAYS. If the day on which any rent or any other
payment  due hereunder is payable falls on a Saturday  or
Sunday or on a legal holiday, it shall be payable on  the
following business day.

s)    BROKERS.  Tenant and Landlord warrant each  to  the
other  that  it  has had no dealings with any  broker  or
agent  in  connection  with this lease,  and  each  party
covenants  to pay, hold harmless and indemnify the  other
from and against any and all costs, expenses or liability
for any compensation, commissions and charges claimed  by
any  broker  or agent with respect to this lease  or  the
negotiation thereof.

t)    COUNTERPARTS.  This Lease may be executed  in  more
than  one  counterpart, each of which shall be deemed  an
original  but all of which together shall constitute  one
and the same instrument.

u)   EXHIBITS. The following Exhibits are attached hereto
and incorporated herein by this reference:

EXHIBIT "A" - Survey of Land
EXHIBIT "B" - Construction Provisions
EXHIBIT "C" - Subordination, Non-Disturbance and Attomment Agreement
EXHIBIT "D" - Commencement Agreement
EXHIBIT "E" - Estoppel Certificate
EXHIBIT "F" - Lease Memorandum
EXHIBIT "G" - Declaration
EXHIBIT "H" - Permitted Encumbrances
EXHIBIT "H-1" Easement
EXHIBIT "I-1" Exterior Sign
EXHIBIT "I-2" Pylon Sign

        IN WITNESS WHEREOF, the parties hereto have caused this Lease
   to be executed effective as of the day and year first written above.

                                  LANDLORD:

                                  MEYER-LAMPH DEVELOPMENT GROUP LTD
                                  a Texas limited partnership

                                  BY: DSL Managment LLC
                                  a Texas limited liability company
                                  Its General Partner

                                  By:  /s/ Dale Meyer
                                  Name Dale Meyer
                                  Its President
                                  Date 2/3/05

                                  TENANT:

                                  ADVANCE STORES COMPANY
                                  INCORPORATED, a Virginia corporation

                                  By: /s/ Jimmmie L Wade
                                  Name Jimmie L Wade
                                  Its President
                                  Date 2/7/05

STATE OF TEXAS       )
                     )SS
COUNTY OF HIDALGO    )

        The undersigned, a Notary Public, in and for the County and State
  aforesaid, does hereby certify, that Dale Meyer, personally known to me
  to be the President of DSL Management, L.L. C., General Partner of
  Meyer-Lamph Development Group, LTD., who acknowledged that he did sign
  the foregoing instrument and that the same is the free act of and on
  behalf of said limited liability company and said limited partnership and
  the free act and deed of him personally and as such President, appeared
  before me this day in person and acknowledged under oath that as such
  President he signed and delivered the said instrument pursuant to
  authority duly given to him by said limited liability company and
  said limited partnership.

        Given under my hand seal this 3rd day of February, 2005.

        [Notary seal]                       /s/ Mary S Scott
                                                Notary Public
        My Commission Expires March 3, 2007

   COMMONWEALTH OF VIRGINIA    )
                               )SS
   COUNTY OF ROANOKE           )

        The undersigned, a Notary Public, in and for the County and State
    aforesaid, does hereby certify, that Jimmie L Wade, President of
    Advance Stores Company, Incorporated, a Virginia corporation, and
    personally known to me to be the same person whose name is subscribed
    to the foregoing instrument, appeared before me this day in person and
    acknowledged under oath that as such President, he signed and delivered
    the said instrument pursuant to authority duly given to him by said
    corporation.

        Given under my hand and seal this 7th day of February, 2005.

                                             /s/ Darin M Shaz
                                             Notary Public

        My Commission expires:  7-31-08

                METES AND BOUNDS
  BEING A 0.815 ACRE (35,500 SQ. FT.) TRACT, AND BEING ALL
  OF LOT ONE (1), AND THE EAST FIFTY FEET (50') OF LOT TWO
  (2), BLOCK ONE (1), RESACA GRANDE SUBDIVISION, SECTION I,
  A SUBDIVISION IN THE CITY OF BROWNSVILLE, CAMERON COUNTY,
  TEXAS, ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN
  CABINET I, SLOT 1338-A AND 1338-B, OF THE MAP RECORDS OF
  CAMERON COUNTY, TEXAS; SAID 0.815 ACRE TRACT BEING MORE
  PARTICULARLY LOCATED AND DESCRIBED AS FOLLOWS;

  BEGINNING AT A CONCRETE MONUMENT FOUND ON THE NORTH RIGHT-
  OF-WAY LINE OF F.M. 802 (150 F.T. R.O.W.) SAID POINT BEING
  THE SOUTHEAST CORNER OF LOT ONE (1) OF SAID RESACA GRANDE
  SUBDIVISION, SECTION I AND THE SOUTHWEST CORNER OF LOT
  FOUR (4) OF MADDEN RESUBDIVISION (CABINET I, PAGE 1375-A,
  C.C.M.R.), FOR THE SOUTHEAST CORNER OF THIS TRACT;

  THENCE, ALONG THE NORTH RIGHT-WAY LINE OF SAID F.M. 802
  (150 FT. R.O.W.) WITH ALONG A CURVE TO THE LEFT'WITH A
  RADIUS OF 1984.86 FT_ AT AN ARC DISTANCE OF 100.64 FT. TO
  THE SOUTHWEST CORNER OF LOT 1, SAME. BEING THE SOUTHEAST
  CORNER OF. LOT 2, A TOTAL DISTANCE OF 150.77 FT. (CH: N
  5715.00"W 150.73 FT.) TO A ONE-HALF INCH IRON ROD WITH AN
  ORANGE PLASTIC CAP STAMPED "AMBIOTEC RPLS 5301" SET FOR THE
  SOUTHWEST CORNER OF THIS TRACT;

  THENCE, LEAVING THE NORTH RIGHT-OF-WAY OF F.M. 802(150
  FL R.O.W.), NORTH 27 DEG. 12 .MIN. 29 SEC. EAST, A
  DISTANCE OF 173.01 FT. TO A POINT ON THE NORTH LINE OF
  LOT TWO (2) OF SAID RESACA GRANDE SUBDIVISION, SECTION I,
  TO A ONE-HALF INCH IRON ROD WITH AN ORANGE PLASTIC CAP
  STAMPED "AMBIOTEC RPLS 5301" SET FOR THE NORTHWEST CORNER
  OF THIS TRACT;

  THENCE, ALONG THE NORTH LINE OF LOTS ONE (1) AND TWO (2),
  OF SAID RESACA GRANDE SUBDIVISION, SECTION I, SOUTH 59 DEG.
  59 MN. 23 SEC_ EAST, AT A DISTANCE OF 50.06 FT. TO THE
  NORTHEAST CORNER OF LOT 2 SAME BEING THE NORTHWEST CORNER
  OF LOT 1, AND A TOTAL DISTANCE OF 251.85 FT. TO A METAL
  PIPE FOUND FOR THE SOUTHEASTCORNER OF LOT TWELVE (12) AND.
  THE NORTHEAST CORNER OF LOT ONE (1) OF SAID RESACA GRANDE
  SUBDIVISION, SECTION 1, FOR THE NORTHEAST CORNER OF THIS
  TRACT;

  THENCE, ALONG THE EAST UNE OF LOT ONE (1) OF SAID RESACA
  GRANDE SUBDIVISION, SECTION I, SAME BEING THE WEST LINE OF
  SAID LOT 4, MADDEN RESUBDIVISION, SOUTH 57 DEG. 17 MIN. 35
  SEC. WEST, A DISTANCE OF 202.53 FT. TO THE POINT OF
  BEGINNING.

  CONTAINING. 0.815 ACRE (35,500 SQ. FT.) OF LAND, MORE OR
  LESS.

    GENERAL NOTES:
  1) THIS. TRACT LIES IN FLOOD ZONE "C" (OUTSIDE THE. 100-
    YEAR FLOOD PLAIN). AS PER THE F.I.A. FLOOD INSURANCE
    RATE MAP OF COMMUNITY NO. 480101, PANEL NO. 0350-B.
    EFFECTIVE DATE SEPTEMBER 15, 1983.

    MONUMENTATION FOUND ALONG THE NORTH RIGHT-OF-WAY UNE
    OF F.M. 802 (150 FT. R.O.W.) WAS HEW FOR BASIS OF
    BEARING.

   3)   THIS TRACT IS SUBJECT TO RESTRICTIONS RECORDED IN VOLUME
    3486, PAGE 162, OFFICIAL RECORDS OF CAMERON COUNTY, TEXAS.

   4)   THIS TRACT IS CLASSIFIED: '4Ca- GENERAL RETAIL "'0"
                 AS PER THE CITY OF BROWNSVILLE
                 PLANNING it ZONING. DEPARTMENT.
                 CONTACT. PERSON: SUSANA GUZUAN,
                 TELEPH. 956-548-6105
            IN A -G"' AREA DISTRICT, YARD SHALL BE PROVIDE)
            AS FOLLOWS:
 THERE SHALL BE A.1-K NT YARD ALONG THE FRONT UNE OF THE
 LOT. THE MINIMUM DEPTH OF EACH FRONT YARD SHALL BE 25
 FEET.

 THERE SHALL BE A REAR YARD ALONG THE REAR UNE OF THE
 LOT. THE MINIMUM DEPTH OF SUCH SHALL BE REAR YARD SHALL
 BE 13.5 FEET FOR A LOT ON AN ALLEY OR 3.5 FEET FOR A LOT
 NOT ON AN ALLEY.

 THERE SHALL. BE A SIDE YARD ALONG EACH SIDELINE OF THE
 LOT. THE MINIMUM WIDTH OF EACH SIDE YARD SHALL BE 3.5
 Ftk. I.
            SEC. 348-813 HEIGHT.
            IN A "T AREA DISTRICT, HEIGHT UNITS SHALL BE AS
            FOLLOWS:
 THE HEIGHT LIMIT SHALL BE TWO STORIES FOR A DWELLING,
 APARTMENT HOUSE, OR OTHER RESIDENTIAL BUILDING.

 THE HEIGHT UNIT SHALL BE 24 FEET FOR ANY OTHER STRUCTURE
 EXCEPT THAT ANY PORTION OF SUCH STRUCTURE MAY BE ERECTED
 HIGHER THAN THE UNIT, PROVIDED SUCH PORTION IS SET BACK
 FROM ALL REQUIRED YARD LINES ONE FOOT FOR EACH FOOT OF
 ITS HEIGHT ABOVE SUCH LIMIT
           SEC. 348-814 LOT =TH.
           IN A "G" AREA DISTRICT, LOT WIDTH SHALL BE AS
           FOLLOWS:
 THE MINIMUM AVERAGE WIDTH OF THE LOT SHALL BE 50 FEET.
 HOWEVER, THE MINIMUM AVERAGE WIDTH OF THE LOT SHALL BE
 25 Feet FOR ANY LOT RECORDED IN THE COUNTY MAP
 RECORDED IN THE COUNTY MAP RECORDS PRIOR TO JULY 14,
 1945.

           SEC. 348-815. LOT AREA.

           IN A AREA DISTRICT, LOT AREA SHALL BE AS FOLLOWS:
 THE. MINIMUM LOT AREA SHALL BE 5,000 SQUARE FEET.
 HOWEVER. THE MINIMUM LOT AREA SHALL BE 5,000 SQUARE FEET
 FOR A TWO-FAMILY DWELLING IN A DWELLING USE DISTRICT.

      THE MINIMUM LOT AREA SHALL BE 2.500 SQUARE FEET FOR
 ANY LOT RECORDED IN THE COUNTY MAP RECORDS PRIOR TO JULY
 14, 1945.

          SEC. 348-816 INTENSITY.
          IN A AREA DISTRICT. INTENSITY SHALL BE AS
          FOLLOWS:

THE MAXIMUM NUMBER OF DWELLING UNITS PER CROSS ACRE SHALL BE
12.5. THE MAXIMUM FLOOR-AREA RATIO. SHALL BE 0.8Loan Agreement between Premier Financial and First Guaranty Bank

    EXHIBIT
      10.6

     

    BUSINESS
      LOAN AGREEMENT

    

    
      	
              Principal

            	
              Loan
                Date

            	
              Maturity

            	
              Loan
                No

            	
              Call
                / Coll

            	
              Account

            	
              Officer

            	
              Initials

            
	
              $7,000,000.00

            	
              01-31-2006

            	
              09-28-2017

            	
              25791389

            	
              220
                / 54

            	
               

            	
              MFL

            	
               

            
	
              References
                in the shaded area are for Lender’s use only and do not limit the
                applicability of this document to any particular loan or
                item.

              Any
                item above containing “ * * * “ has been omitted due to text length
                limitations

            

    

    

    
      	
              Grantor:

            	
              PREMIER
                FINANCIAL BANCORP, INC. (TIN:

              61-1206757)

              2883
                FIFTH AVE.

              HUNTINGTON,
                WV 25702

            	 	
              Lender:

            	
              FIRST
                GUARANTY BANK

              First
                Guaranty Square Banking Center - Commercial

              Lending

              400
                East Thomas Street

              P
                0
                Box 2009

              Hammond,
                LA 70404-2009

              (985)
                345-7685

            

    

    
THIS
      BUSINESS LOAN AGREEMENT dated January 31, 2006, Is made and executed between
      PREMIER FINANCIAL BANCORP, INC. ("Borrower") and FIRST GUARANTY BANK ("Lender")
      on the following terms and conditions. Borrower has applied to Lender for a
      loan
      or loans or other financial accommodations, including those which may be
      described on any exhibit or schedule attached to this Agreement ("Loan").
      Borrower understands and agrees that: (A) In granting, renewing, or extending
      any Loan, Lender is relying upon Borrower's representations, warranties, and
      agreements as set forth In this Agreement; (B) the granting, renewing, or
      extending of any Loan by Lender at all times shall be subject to Lender's sole
      judgment and discretion; and (C) all such Loans shall be and remain subject
      to
      the terms and conditions of this Agreement.

     

    APPLICATION
      FOR AND PURPOSE OF THE LOAN.
      Borrower has applied to Lender for a Loan in the aggregate principal amount
      of
      $7,000,000 for
      the
      following purpose:
      TO PAYOFF 7MM IN 9.75% DEBENTURES.

     

    BORROWER'S
      NOTE.
      Lender
      has agreed to extend a Loan to Borrower in the amount of $7,000,000.00 subject
      to the terms and conditions of this Agreement and Borrower's attached Note.
      Borrower agrees to be bound and obligated under the terms and conditions of
      this
      Agreement and Borrower's Note.

     

    TERM.
      This
      Agreement shall be effective as of January 31, 2006, and shall continue in
      full
      force and effect until such time as all of Borrower's Loans in favor of Lender
      have been paid in full, including principal, interest, costs, expenses,
      attorneys' fees, and other fees and charges, or until September 28,
      2017.

     

    CONDITIONS
      PRECEDENT TO EACH ADVANCE.
      Lender's obligation to make the Initial Advance and each subsequent Advance
      under this Agreement shall be subject to the fulfillment to Lender's
      satisfaction of all of the conditions set forth in this Agreement and In the
      Related Documents.

     

    Loan
      Documents.
      Borrower shall provide to Lender the following documents for the Loan: (1)
      the
      Note; (2) Security Agreements granting to Lender security interests in the
      Collateral; (3) financing statements and all other documents perfecting Lender's
      Security Interests; (4) evidence of insurance as required below; (5) together
      with all such Related Documents as Lender may require for the Loan; all in
      form
      and substance satisfactory to Lender and Lender's counsel. 

     

    Borrower's
      Authorization.
      Borrower shall have provided in form and substance satisfactory to Lender
      properly certified resolutions, duly authorizing the execution and delivery
      of
      this Agreement, the Note and the Related Documents. In addition, Borrower shall
      have provided such other resolutions, authorizations, documents and instruments
      as Lender or its counsel, may require. 

     

    Payment
      of Fees and Expenses.
      Borrower shall have paid to Lender all fees, charges, and other expenses which
      are then due and payable as specified in this Agreement or any Related
      Document. 

     

    Representations
      and Warranties.
      The
      representations and warranties set forth in This Agreement, in the Related
      Documents, and in any document or certificate delivered to Lender under this
      Agreement are true and correct. 

     

    No
      Event of Default.
      There
      shall not exist at the time of any Advance a condition which would constitute
      an
      Event of Default under this Agreement or under any Related Document. 

     

    REPRESENTATIONS
      AND WARRANTIES.
      Borrower represents and warrants to Lender, as of the date of this Agreement,
      as
      of the date of each disbursement of loan proceeds, as of the date of any
      renewal, extension or modification of any Loan, and at all times any
      Indebtedness exists: 

     

    Organization.
      Borrower is a corporation for profit which is, and at all times shall be, duly
      organized, validly existing, and in good standing under and by virtue of the
      laws of the Commonwealth of Kentucky. Borrower is duly authorized to transact
      business in all other states in which Borrower is doing business, having
      obtained all necessary filings, governmental licenses and approvals for each
      state in which Borrower is doing business. Specifically, Borrower is, and at
      all
      times shall be, duly qualified as a foreign corporation in all states in which
      the failure to so qualify would have a material adverse effect on its business
      or financial condition. Borrower has the full power and authority to own its
      properties and to transact the business in which it is presently engaged or
      presently proposes to engage. Borrower maintains its principal office at 2883
      FIFTH AVE., HUNTINGTON, WV 25702. Unless Borrower has designated otherwise
      in
      writing, this is the principal office at which Borrower keeps its books and
      records including its records concerning the Collateral. Borrower will notify
      Lender prior to any change in the location of Borrower's state of organization
      or any change in Borrower's name. Borrower shall do all things necessary to
      preserve and to keep in full force and effect its existence, rights and
      privileges, and shall comply with all regulations, rules, ordinances, statutes,
      orders and decrees of any governmental or quasi-governmental authority or court
      applicable to Borrower and Borrower's business activities. 

     

    Assumed
      Business Names.
      Borrower has filed or recorded all documents or filings required by law relating
      to all assumed business names used by Borrower. Excluding the name of Borrower,
      the following is a complete list of all assumed business names under which
      Borrower does business: None. 

     

    Authorization.
      Borrower's execution, delivery, and performance of this Agreement and all the
      Related Documents have been duly authorized by all necessary action by Borrower
      and do not conflict with, result in a violation of, or constitute a default
      under (1) any provision of (a) Borrower's articles of incorporation or
      organization, of bylaws, or (b) any agreement or other instrument binding upon
      Borrower or (2) any law, governmental regulation, court decree, or order
      applicable to Borrower or to Borrower's properties. 

     

    Financial
      Information.
      Each of
      Borrower's financial statements supplied to Lender truly and completely
      disclosed Borrower's financial condition as of the date of the statement, and
      there has been no material adverse change in Borrower's financial condition
      subsequent to the date of the most recent financial statement supplied to
      Lender. Borrower has no material contingent obligations except as disclosed
      in
      such financial statements. 

     

    Legal
      Effect.
      This
      Agreement constitutes, and any instrument or agreement Borrower is required
      to
      give under this Agreement when delivered will constitute legal, valid, and
      binding obligations of Borrower enforceable against Borrower in accordance
      with
      their respective terms. 

     

    Properties.
      Except
      as contemplated by this Agreement or as previously disclosed in Borrower's
      financial statements or in writing to Lender and as accepted by Lender, and
      except for property tax liens for taxes not presently due and payable. Borrower
      owns and has good title to all of Borrower's properties free and clear of all
      Security Interests, and has not executed any security documents or financing
      statements relating to such properties. All of Borrower's properties are titled
      in Borrower's legal name, and Borrower has not used or filed a financing
      statement under any other name for at least the last five (5) years. 

     

    Hazardous
      Substances.
      Except
      as disclosed to and acknowledged by Lender In writing, Borrower represents
      and
      warrants that: (1) During the period of Borrower's ownership of the Collateral,
      there has been no use, generation, manufacture, storage, treatment, disposal,
      release or threatened release of any Hazardous Substance by any person on,
      under, about or from any of the Collateral. (2) Borrower has no knowledge of,
      or
      reason to believe that there has been (a) any breach or violation of any
      Environmental Laws; (b) any use, generation, manufacture, storage, treatment,
      disposal, release or threatened release of any Hazardous Substance on, under,
      about or from the Collateral by any prior owners or occupants of any of the
      Collateral; or is any actual or threatened litigation or claims of any kind
      by
      any person relating to such matters. (3) Neither Borrower nor any tenant,
      contractor, agent or other authorized user of any of the Collateral shall use,
      generate, manufacture, store, treat, dispose of or release any Hazardous
      Substance on, under, about or from any of the Collateral; and any such activity
      shall be conducted in compliance with all applicable federal, state, and local
      laws, regulations, and ordinances, including without limitation all
      Environmental Laws, Borrower authorizes Lender and its agents to enter upon
      the
      Collateral to make such inspections and tests as Lender may deem appropriate
      to
      determine compliance of the Collateral with this section of the Agreement.
      Any
      inspections or tests made by Lender shall be at Borrower's expense and for
      Lender's purposes only and shall not be construed to create any responsibility
      or liability on the part of Lender to Borrower or to any other person. The
      representations and warranties contained herein are based on Borrower's due
      diligence in investigating the Collateral for hazardous waste and

    
       

      
        
          

        

      

       

    

     

    
      	
              BUSINESS
                LOAN AGREEMENT

            
	
              Loan
                No: 25791389

            	
              (Continued)

            	
              Page
                2

            

    

     

    Hazardous
      Substances.
      Borrower hereby (1) releases and waives any future claims against Lender or
      indemnity or contribution in the event Borrower becomes liable for cleanup
      or
      other costs under any such laws, and (2) agrees to indemnify and hold harmless
      Lender against any and all claims, losses, liabilities, damages, penalties,
      and
      expenses which Lender may directly or indirectly sustain or suffer resulting
      from a breach of this section of the Agreement or as a consequence of any use,
      generation, manufacture, storage, disposal, release or threatened release of
      a
      hazardous waste or substance on the Collateral. The provisions of this section
      of the Agreement, Including the obligation to indemnify, shall survive the
      payment of the Indebtedness and the termination, expiration or satisfaction
      of
      this Agreement and shall not be affected by Lender's acquisition of any interest
      in any of the Collateral, whether by foreclosure or otherwise. 

     

    Litigation.
      There
      are no suits or proceedings pending, or to the knowledge of Borrower, threatened
      against or affecting Borrower or Borrower's assets, before any court or by
      any
      governmental agency, other than those previously disclosed to Lender in writing,
      which, if adversely determined, may have a material adverse effect on Borrower's
      financial condition or business. 

     

    Taxes.
      To the
      best of Borrower's knowledge, all of Borrower's tax returns and reports that
      are
      or were required to be filed, have been filed, and all taxes, assessments and
      other governmental charges have been paid in full, except those presently being
      or to be contested by Borrower in good faith in the ordinary course of business
      and for which adequate reserves have been provided. 

     

    Information.
      All
      information heretofore or contemporaneously herewith furnished by Borrower
      to
      Lender for the purposes of or in connection with this Agreement or any
      transaction contemplated hereby is, and all Information hereafter furnished
      by
      or on behalf of Borrower to Lender will be, true and accurate in every material
      respect on the date as of which such information is dated or certified; and
      none
      of such information is or will be incomplete by omitting to state any material
      fact necessary to make such Information not misleading. 

     

    Lien
      Priority.
      Unless
      otherwise previously disclosed to Lender in writing. Borrower has not entered
      Into or granted any Security Agreements, or permitted the filing or attachment
      of any Security Interests on or affecting any of the Collateral directly or
      indirectly securing repayment of Borrower's Loan and Note, that would be prior
      or that may in any way be superior to Lender's Security Interests end rights
      in
      and to such Collateral. 

     

    Binding
      Effect.
      This
      Agreement, the Note, all Security Agreements (if any), and all Related Documents
      are binding upon the signers thereof, as well as upon their successors,
      representatives and assigns, and are legally enforceable in accordance with
      their respective terms. 

     

    AFFIRMATIVE
      COVENANTS.
      Borrower covenants and agrees with Lender that, so long as this Agreement
      remains in effect. Borrower will: 

     

    Notices
      of Claims and Litigation.
      Promptly inform Lender in writing of (1) all material adverse changes In
      Borrower's financial condition, and (2) all existing and all threatened
      litigation, claims, investigations, administrative proceedings or similar
      actions effecting Borrower or any Guarantor which could materially affect the
      financial condition of Borrower or the financial condition of any Guarantor.
      

     

    Financial
      Records.
      Maintain its books and records in accordance with GAAP, applied on a consistent
      basis, and permit Lender to examine and audit Borrower's books and records
      at
      all reasonable times. 

     

    Financial
      Statements.
      Furnish Lender with the following: 

     

    Annual
      Statements.
      As soon
      as available, but in no event later than ninety (90) days after the and of
      each
      fiscal year, Borrower's balance sheet and Income statement for the year ended,
      audited by a certified public accountant satisfactory to Lender.

     

    Interim
      Statements.
      As
      soon as available, but in no event later than 45 days after the end of each
      fiscal quarter. Borrower's balance sheet and profit and loss statement for
      the
      period ended, prepared by Borrower.

     

    Tax
      Returns.
      As soon
      as available, but in no event later than ninety (90) days after the applicable
      filing date for the tax reporting period ended. Federal and other governmental
      tax returns, prepared by a certified public accountant satisfactory to
      Lender.

    

     

    All
      financial reports required to be provided under this Agreement shall be prepared
      in accordance with GAAP, applied on a consistent basis, and certified by
      Borrower as being true and correct. 

     

    Additional
      Information.
      Furnish
      such additional Information and statements, as Lender may request from time
      to
      time. 

     

    Insurance
      Maintain fire and other risk insurance, public liability insurance, and such
      other insurance as Lender may require with respect to Borrower's properties
      and
      operations, in form, amounts, coverages and with insurance companies acceptable
      to Lender, Borrower, upon request of Lender, will deliver to Lender from time
      to
      time the policies or certificates of insurance in form satisfactory to Lender,
      including stipulations that coverages will not be cancelled or diminished
      without at least thirty (30) days prior written notice to Lender, Each insurance
      policy also shall include an endorsement providing that coverage in favor of
      Lender will not be impaired in any way by any act, omission or default of
      Borrower or any other person. In connection with all policies covering assets
      in
      which Lender holds or is offered a Security interest for the Loans, Borrower
      will provide Lender with such lender's loss payable or other endorsements as
      Lender may require. 

     

    Insurance
      Reports.
      Furnish to Lender, upon request of Lender, reports on each existing insurance
      policy showing such information as Lender may reasonably request, including
      without limitation the following: (1) the name of the insurer; (2) the risks
      insured: (3) the amount of the policy; (4) the properties insured; (5) the
      then
      current property values on the basis of which insurance has been obtained,
      and
      the manner of determining those values; and (6) the expiration date of the
      policy. In addition, upon request of Lender (however not more often than
      annually), Borrower will have an independent appraiser satisfactory to Lender
      determine, as applicable, the actual cash value or replacement cost of any
      Collateral. The cost of such appraisal shall be paid by Borrower. 

     

    Other
      Agreements.
      Comply
      with all terms and conditions of all other agreements, whether now or hereafter
      existing, between Borrower and any Other party and notify Lender immediately
      in
      writing of any default in connection with any other such agreements.

     

    Loan
      Fees. Charges and Expenses. In addition to all other agreed upon fees, charges,
      and expenses, pay the following; $70,000.00
      LOAN FEE AND $150.00 DOCUMENT PREP FEE. 

     

    Loan
      Proceeds.
      Use all
      Loan proceeds solely for the following specific purposes: TO
      PAYOFF 7MM IN 9.75% DEBENTURES. 

     

    Taxes,
      Charges and Liens. Pay
      and
      discharge when due all of its indebtedness and obligations, including without
      limitation all assessments, taxes, governmental charges, levies and liens,
      of
      every kind and nature, imposed upon Borrower or its properties, income, or
      profits, prior to the date on which penalties would attach, and all lawful
      claims that, if unpaid, might become a lien or charge upon any of Borrower's
      properties, income, or profits. 

     

    Performance.
      Perform
      and comply, in a timely manner, with all terms, conditions, and provisions
      set
      forth in this Agreement, in the Related Documents, and in all other Instruments
      and agreements between Borrower and Lender. Borrower shall notify Lender
      Immediately in writing of any default in connection with any agreement.

     

    Operations.
      Maintain executive and management personnel with substantially the same
      qualifications and experience as the present executive and management personnel;
      provide written notice to Lender of any change in executive and management
      personnel; conduct its business affairs in a reasonable and prudent manner.
      

     

    Environmental
      Studies.
      Promptly conduct and complete, at Borrower's expense, all such investigations,
      studies, samplings and testings as mav be requested by Lender or any
      governmental authority relative to any substance, or any waste or by-product
      of
      any substance defined as toxic or a hazardous substance under applicable
      federal, state, or local law. rule, regulation, order or directive, at or
      affecting any property or any facility owned, leased or used by Borrower.

     

    Compliance
      with Governmental Requirements.
      Comply
      with all laws, ordinances, and regulations, now or hereafter in effect, of
      all
      governmental authorities applicable to the conduct of Borrower's properties,
      businesses and operations, and to the use or occupancy of the Collateral,
      including without limitation, the Americans With Disabilities Act. Borrower
      may
      contest in good faith any such law, ordinance, or regulation and withhold
      compliance during any proceeding, including appropriate appeals, so long as
      Borrower has notified Lender in writing prior to doing so and so long as, in
      Lender's sole opinion, Lender's interests in the Collateral are not jeopardized.
      Lender may require Borrower to post adequate security or a surety bond,
      reasonably satisfactory to Lender, to protect Lender's interest. 

     

    Inspection.
      Permit
      employees or agents of Lender at any reasonable time to inspect any and all
      Collateral for the Loan or Loans and Borrower's other properties and to examine
      or audit Borrower's books, accounts, and records and to make copies and
      memoranda of Borrower's books, accounts, and records. If Borrower now or at
      any
      time hereafter maintains any records (including without limitation computer
      generated records and computer software programs for the generation of such
      records) in the possession of a third party, Borrower, upon request of Lender,
      shall notify such party to permit Lender free access to such records at all
      reasonable times and to provide Lender with copies of any records it rnay
      request, all at Borrower's expense. 

    
       

      
        
          

        

      

       

    

     

    
      	
              BUSINESS
                LOAN AGREEMENT

            
	
              Loan
                No: 25791389

            	
              (Continued)

            	
              Page
                3

            

    

     

    Environmental
      Compliance and Reports.
      Borrower shall comply in all respects with any and all Environmental Laws;
      not
      cause or permit to exist, as a result of an intentional or unintentional action
      or omission on Borrower's part or on the part of any third party, on property
      owned and/or occupied by Borrower, any environmental activity where damage
      may
      result to the environment, unless such environmental activity Is pursuant to
      and
      in compliance with the conditions of a permit issued by the appropriate federal,
      state or local governmental authorities; shall furnish to Lender promptly and
      in
      any event within thirty 130) days after receipt thereof a copy of any notice,
      summons. lien, citation, directive, letter or other communication from any
      governmental agency or instrumentality concerning any intentional or
      unintentional action or omission on Borrower's part in connection with any
      environmental activity whether or not there is damage to the environment
      and/or other natural resources. 

     

    Additional
      Assurances. Make,
      execute and deliver to Lender such promissory notes, mortgages, deeds of trust,
      security agreements, assignments, financing statements, instruments, documents
      and other agreements as Lender or its attorneys may reasonably request to
      evidence and secure the Loans and to perfect all Security Interests.

     

    LENDER'S
      EXPENDITURES.
      Borrower recognizes and agrees that Lender may incur certain expenses in
      connection with Lender's exercise of rights under this Agreement. If any action
      or proceeding is commenced that would materially affect Lender's interest in
      the
      Collateral or if Borrower fails to comply with any provision of this Agreement
      or any Related Documents, including but not limited to Borrower's failure to
      discharge or pay when due any amounts Borrower is required to discharge or
      pay
      under this Agreement or any Related Documents, Lender on Borrower's behalf
      may
      (but shall not be obligated to) take any action that Lender deems appropriate,
      including but not limited to discharging or paying all taxes. Encumbrances
      and
      other claims, at any time levied or placed on any Collateral and paying all
      costs (or insuring, maintaining and preserving any Collateral, including without
      limitation, the purchase of insurance protecting only Lender's interest in
      any
      Collateral, Lender may further take such other action or actions and incur
      such
      additional expenditures as Lender may deem to be necessary and proper to cure
      or
      rectify any actions or inactions on Borrower's part as may be required under
      this Agreement. Nothing under this Agreement or otherwise shall obligate Lender
      to take any such actions or to incur any such additional expenditures on
      Borrower's behalf, or as making Lender in any way responsible or liable for
      any
      loss, damage, or injury to any Collateral, to Borrower, or to any other person
      or persons, resulting from Lender's election not to take such actions or to
      incur such additional expenses. In addition, Lender's election to take any
      such
      actions or to incur such additional expenditures shall not constitute a waiver
      or forbearance by Lender of any Event of Default under this Agreement. All
      such
      expenditures incurred or paid by Lender for such purposes will then bear
      interest at the rate charged under the Note from the date incurred or paid
      by
      Lender to the date of repayment by Borrower. All such expenses will become
      a
      part of the indebtedness and, at Lender's option, will (A) be payable on demand;
      (B) be added to the balance of the Note and be apportioned among and be payable
      with any installment payments to become due during either (1) the term of any
      applicable insurance policy; or (2) the remaining term of the Note; or (C)
      be
      treated as a balloon payment which will be due and payable at the Note's
      maturity. 

     

    NEGATIVE
      COVENANTS.
      Borrower covenants and agrees with Lender that while this Agreement Is in
      effect, Borrower shall not, without the prior written consent of Lender:

     

    Continuity
      of Operations.
      (1)
      Engage in any business activities substantially different than those In which
      Borrower is presently engaged, 12) cease operations, liquidate, merge, transfer,
      acquire or consolidate with any other entity, change Its name, dissolve or
      transfer or sell Collateral out of the ordinary course of business, or (3)
      Borrower may pay cash dividends on its stock to its shareholders or purchase
      or
      retire any of Borrower's outstanding shares or alter of amend Borrower's capital
      structure. 

     

    Loans,
      Acquisitions and Guaranties.
      (2)
      purchase, create or acquire any interest in any other enterprise or entity,
      or
      (3) incur any obligation as surety or guarantor other than in the ordinary
      course of business. 

     

    Agreements.
      Borrower will not enter into any agreement containing any provisions which
      would
      be violated or breached by the performance of Borrower's obligations under
      this
      Agreement or in connection herewith.

     

    DEPOSIT
      ACCOUNTS.
      As
      collateral security for repayment of Borrower's Note and all renewals and
      extensions, as well as to secure any and all other loans, notes, indebtedness
      and obligations that Borrower may now and in the future owe to Lender or incur
      in Lender's favor, whether direct or indirect, absolute or contingent, due
      or to
      become due, of any nature and kind whatsoever (with the exception of any
      indebtedness under a consumer credit card account), and to the extent permitted
      by law. Borrower is granting Lender a continuing security interest in any and
      all funds that Borrower may now and in the future have on deposit with Lender
      or
      in certificates of deposit or other deposit accounts as to which Borrower is
      an
      account holder (with the exception of IRA, pension, and other tax-deferred
      deposits). Borrower further agrees that, to the extent permitted by law, Lender
      may at any time apply any funds that Borrower may have on deposit with Lender
      or
      in certificates of deposit or other deposit accounts as to which Borrower is
      an
      account holder against the unpaid balance of Borrower's Note and any and all
      other present and future indebtedness and obligations that Borrower may then
      owe
      to Lender, in principal, Interest, fees, costs, expenses, and reasonable
      attorneys' fees. 

     

    EVENTS
      OF DEFAULT.
      The
      following actions or inactions or both shall constitute Events of Default under
      this Agreement: 

     

    Default
      Under the Note.
      Should
      Borrower default in the payment of principal or interest under the Note or
      any
      of the Indebtedness. 

     

    Default
      Under this Agreement.
      Should
      Borrower violate, or fail to comply fully with any of the terms and conditions
      of, or default under this Agreement. 

     

    Default
      Under other Agreements.
      Should
      any default occur or exist under any Related Document which directly or
      indirectly secures repayment of the Loan and any of the Indebtedness.

     

    Other
      Defaults in Favor of Lender. Borrower
      or any guarantor defaults under any other loan, extension of credit, security
      right, instrument, document, or agreement, or obligation in favor of Lender.
      

     

    Insolvency.
      Should
      the suspension, failure or insolvency, however evidenced, of Borrower or any
      Guarantor occur or exist. 

     

    Readjustment
      of Indebtedness.
      Should
      proceedings for readjustment of indebtedness, reorganization, composition or
      extension under any insolvency law be brought by or against Borrower or any
      Guarantor.

     

    Assignment
      for Benefit of Creditor.
      Should
      Borrower or any Guarantor tile proceedings for a respite or make a general
      assignment for the benefit of creditors. 

     

    Receivership.
      Should
      a receiver of all or any part of Borrower's property, or the property of any
      Guarantor, be applied for or appointed. 

     

    Dissolution
      Proceedings.
      Proceedings for the dissolution or appointment of a liquidator of Borrower
      or
      any guarantor are commenced. 

     

    False
      Statements.
      Any
      warranty, representation or statement made or furnished to Lender by Borrower
      or
      on Borrower's behalf, the Note, is false or misleading in any material respect,
      either now or at the time made or furnished or becomes false or misleading
      at
      any time thereafter. 

     

    Insecurity.
      Lender
      in good faith believes itself insecure with regard to repayment of the Loan.
      

     

    Effect
      of an Event of Default.
      If any
      Event of Default shall occur, except where otherwise provided in this Agreement
      or the Related Documents, all commitments and obligations of Lender under this
      Agreement or the Related Documents or any other agreement immediately will
      terminate (including any obligation to make further Loan Advances or
      disbursements), and, at Lender's option, all indebtedness immediately will
      become due and payable, all without notice of any kind to Borrower, except
      that
      in the case of an Event of Default of the type described in the "Insolvency"
      subsection above, such acceleration shall be automatic and not optional. In
      addition, Lender shall have all the rights and remedies provided in the Related
      Documents or available at law, in equity, or otherwise. 

     

    Lender
      shall have the right at its sole option, to accelerate payment of Borrower's
      Note in full, in principal, interest, costs, expenses, attorneys' fees, and
      other fees and charges, as well as to accelerate the maturity of any and all
      other loans and/or obligations that Borrower may then owe to Lender, whether
      direct or indirect, or by way of assignment or purchase of a participation
      interest, and whether absolute or contingent, liquidated or unliquidated,
      voluntary or involuntary, determined or undetermined, due or to become due,
      and
      whether now existing or hereafter arising, and whether Borrower is obligated
      alone or with others on a "solidary" or "joint and several" basis, as a
      principal obligor or as a surety, of every nature and kind whatsoever, whether
      any such indebtedness may be barred under any statute of limitations or
      otherwise may be unenforceable or voidable for any reason whatsoever.

     

    Lender
      shall have the additional right, again at its sole option, to file an
      appropriate collection action against Borrower and/or against any guarantor
      or
      guarantors of Borrower's Loan and Note, and/or to proceed or exercise any rights
      against any Collateral then securing repayment of Borrower's Loan and Note,
      Borrower and each guarantor further agree that Lender's remedies shall be
      cumulative in nature and nothing under this Agreement or otherwise, shall be
      construed as to limit or restrict the options and remedies available to Lender
      following any event of default under this Agreement or otherwise. 

    

    
       

      
        
          

        

      

       

    

     

    
      	
              BUSINESS
                LOAN AGREEMENT

            
	
              Loan
                No: 25791389

            	
              (Continued)

            	
              Page
                4

            

    

     

    Except
      as may be prohibited by applicable law, all of Lender's rights and remedies
      shall be cumulative and may be exercised singularly or concurrently. Election
      by
      Lender to pursue any remedy shall not exclude pursuit of any other remedy,
      and
      an election to make expenditures of to take action to perform an obligation
      of
      Borrower or of any Grantor shall not affect Lender's right to declare a default
      and to exercise its rights and remedies. 

     

    OTHER
      TERMS AND CONDITIONS: 

    1.
      BORROWERS MUST NOTIFY LENDER OF ANY MATERIAL CHANGE IN FINANCIAL CONDITION.
      

    2.
      LOAN
      TO BOOK VALUE OF BOONE COUNTY BANK STOCK SHALL NEVER EXCEED 40%.

     

    MODIFICATIONS
      TO THIS BUSINESS LOAN AGREEMENT.

    1.
      In
      the section entitled "Miscellaneous Provisions" under the subtopic "Attorneys'
      Fees; Expenses" this paragraph shall read as follows:"Borrower agrees to pay
      upon demand all of Lender's costs and expenses. Including Lender's reasonable
      attorneys' fees in an amount not exceeding 12.000% of the principal balance
      due
      on the Loan and Lender's legal expenses, incurred in connection with the
      enforcement of this Agreement. Lender may hire or pay someone else to help
      enforce this Agreement, and Borrower shall pay the costs and expenses of such
      enforcement. Costs and expenses include Lender's reasonable attorneys' fees
      in
      an amount not exceeding 12.000% of the principal balance due on the Loan and
      legal expenses whether or not there is a lawsuit, including reasonable
      attorneys' fees in an amount not exceeding 12.000% of the principal balance
      due
      on the Loan and legal expenses for bankruptcy proceedings including efforts
      to
      modify or vacate any automatic stay or injunction), appeals, and any anticipated
      post-judgment collection services. Borrower also shall pay all court costs
      and
      such additional fees as may be directed by the court," 

    2.
      In
      the section "AFFIRMATIVE COVENANTS" under the subtopic "Financial Statements:
      Interim Statements" the following sentence will be added: "In lieu of an interim
      statement the Borrower shall provide and Lender shall accept the Borrower's
      10Q
      statement as filed with the Securities and Exchange Commission." 

     

    Miscellaneous
      Provisions. The
      following miscellaneous provisions ere a part of this Agreement: 

     

    Amendments.
      No
      amendment, modification, consent or waiver of any provision of this Agreement,
      and no consent to any departure by Borrower therefrom, shall be effective unless
      the same shall be in writing signed by a duly authorized officer of Lender,
      and
      then Shall be effective only as to the specific instance and for the specific
      purpose for which given. 

     

    Caption
      Headings.
      Caption
      headings in this Agreement are for convenience purposes only and are not to
      be
      used to interpret or define the provisions of this Agreement. 

     

    Consent
      to Loan Participation.
      Borrower agrees and consents to Lender's sale or transfer, whether now or later,
      of one or more participation interests in the Loan to one or more purchasers,
      whether related or unrelated to Lender, Lender may provide, without any
      limitation whatsoever, to any one or more purchasers, or potential purchasers,
      any information or knowledge Lender may have about Borrower or about any other
      matter relating to the Loan, and Borrower hereby waives any rights to privacy
      Borrower may have with respect to such matters. Borrower additionally waives
      any
      and all notices of sale of participation interests, as well as all notices
      of
      any repurchase of such participation interests. Borrower also agrees that the
      purchasers of any such participation interests will be considered as the
      absolute owners of such interests in the Loan and will have all the rights
      granted under the participation agreement or agreements governing the sale
      of
      such participation interests. Borrower further waives all rights of offset
      or
      counterclaim that it may have now or later against Lender or against any
      purchaser of such a participation interest and unconditionally agrees that
      either Lender or such purchaser may enforce Borrower's obligation under the
      Loan
      irrespective of the failure or insolvency of any holder of any interest in
      the
      Loan. Borrower further agrees that the purchaser of any such participation
      interests may enforce its interests irrespective of any personal claims or
      defenses that Borrower may have against Lender. 

     

    Governing
      Law. This Agreement will be governed by federal law applicable to Lender and.
      to
      the extent not preempted by federal law, the laws of the State of Louisiana
      without regard to its conflicts of law provisions. This Agreement has been
      accepted by Lender In the State of Louisiana. 

     

    No
      Waiver by Lender.
      Lender
      shall not be deemed lo have waived any rights under this Agreement unless such
      waiver is given in writing and signed by Lender. No delay or omission on the
      part of Lender in exercising any right shall operate as a waiver of such right
      or any other right. A waiver by Lender of a provision of this Agreement shall
      not prejudice or constitute a waiver of Lender's right otherwise to demand
      strict compliance with that provision or any other provision of this Agreement.
      No prior waiver by Lender, nor any course of dealing between Lender and
      Borrower, or between Lender and any Grantor, shall constitute a waiver of any
      of
      Lender's rights or of any of Borrower's or any Grantor's obligations as to
      any
      future transactions. Whenever the consent of Lender is required under this
      Agreement, the granting of such consent by Lender in any instance shall not
      constitute continuing consent to subsequent instances where such consent is
      required and in all cases such consent may be granted or withheld in the sole
      discretion of Lender. 

     

    Notices.
      To give
      Borrower any notice required under this Agreement, Lender may hand deliver
      or
      mail the notice to Borrower at Borrower's last address in Lender's records.
      If
      there is more than one Borrower under this Agreement, notice to a single
      Borrower shall be considered as notice to all Borrowers. To give Lender any
      notice under this Agreement, Borrower (or any Borrower! shall mail the notice
      to
      Lender by registered or certified mail at the address specified in this
      Agreement, or at any other address that Lender may have given to Borrower (or
      any Borrower) by written notice as provided in this section. All notices
      required or permitted under this Agreement must be in writing and will be
      considered as given on the day it is delivered by hand or deposited in the
      U.S.
      Mail as provided herein. 

     

    Severability
      If any
      provision of this Agreement is held to be illegal. Invalid or unenforceable
      under present or future laws effective during the term hereof, such provision
      shall be fully severable. This Agreement shall be construed and enforceable
      as
      if the illegal, invalid or unenforceable provision had never comprised a part
      of
      it, and the remaining provisions of this Agreement shall remain in full force
      and effect and shall not be affected by the illegal, invalid or unenforceable
      provision or by its severance herefrom. Furthermore, In lieu of such illegal,
      invalid or unenforceable provision, there shall be added automatically as a
      part
      of this Agreement, a provision as similar in terms to such illegal, invalid
      or
      unenforceable provision as may be possible and legal, valid and enforceable.
      

     

    Subsidiaries
      and Affiliates of Borrower.
      To the
      extent the context of any provisions of this Agreement makes it appropriate,
      including without limitation any representation, warranty or covenant, the
      word
      "Borrower" as used in this Agreement shall include all of Borrower's
      subsidiaries and affiliates. Notwithstanding the foregoing however, under no
      circumstances shall this Agreement be construed to require Lender to make any
      Loan or other financial accommodation to any of Borrower's subsidiaries or
      affiliates. 

     

    Successors
      and Assigns.
      All
      covenants and agreements by or on behalf of Borrower contained in this Agreement
      or any Related Documents shall hind Borrower's successors and assigns and shall
      Inure to the benefit of Lender and its successors and assigns, Borrower shall
      not, however, have the right to assign Borrower's rights under this Agreement
      or
      any interest therein, without the prior written consent of Lender. 

     

    Survival
      of Representations and Warranties
      Borrower understands and agrees that in making the Loan, Lender is relying
      on
      all representations, warranties, and covenants made by Borrower in this
      Agreement or in any certificate or other instrument delivered by Borrower to
      Lender under this Agreement or the Related Documents. Borrower further agrees
      that regardless of any investigation made by Lender, all such representations,
      warranties and covenants will survive the making of the Loan and delivery to
      Lender of the Related Documents, shall be continuing in nature, and shall remain
      in full force and effect until such time as Borrower s Indebtedness shall be
      paid in full, or until this Agreement shall be terminated in the manner provided
      above, whichever is the last to occur. 

     

    Definitions.
      The
      following capitalized words and terms shall have the following meanings when
      used in this Agreement, unless specifically stated to the contrary, all
      references to dollar amounts shall mean amounts in lawful money of the United
      States of America. Words and terms used in the singular shall include the
      plural, and the plural shall include the singular, as the context may require.
      Words and terms not otherwise defined in this Agreement shall have the meanings
      attributed to such terms in the Louisiana Commercial Laws (La. R.S.
      10:9-101. et seq.). Accounting words and terms not otherwise defined in this
      Agreement shall have the meanings assigned to them in accordance with generally
      accepted accounting principles as in effect on the date of this Agreement:
      

     

    Advance.
      The
      word "Advance” means a disbursement of Loan funds made, or to be made, to
      Borrower or on Borrower's behalf on a line of credit or multiple advance basis
      under the terms and conditions of this Agreement. 

    
       

      
        
          

        

      

       

    

     

    
      	
              BUSINESS
                LOAN AGREEMENT

            
	
              Loan
                No: 25791389

            	
              (Continued)

            	
              Page
                5

            

    

     

    Agreement.
      The
      word "Agreement" means this Business Loan Agreement, as this Business Loan
      Agreement may be amended or modified from time to time, together with all
      exhibits and schedules attached or to be attached to this Business Loan
      Agreement from time to time. 

     

    Borrower.
      The
      word "Borrower" means PREMIER FINANCIAL BANCORP, INC. and Includes all
      co-signers and co-makers signing the Note. 

     

    Collateral.
      The
      word "Collateral" means all property and assets granted as collateral security
      for a Loan, whether real or personal properly, whether granted directly or
      indirectly, whether granted now or in the future, and whether granted in the
      form of a security Interest, mortgage, collateral mortgage, dead of trust,
      assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage,
      chattel trust, factor's lien, equipment trust, conditional sale, trust receipt,
      lien, charge, lien or title retention contract, lease or consignment intended
      as
      a security device, or any other security or lien interest whatsoever, whether
      created by law, contract, or otherwise. 

     

    Environmental
      Laws.
      The
      words "Environmental Laws' mean any and all state, federal and local statutes,
      regulations and ordinances relating to the protection of human health or the
      environment, including without limitation the Comprehensive Environmental
      Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section
      9601, et. Seq. ("CERCLA"), the Superfund Amendments and Reauthorization Act
      of
      1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act,
      49 U.S.C. Section 1801, et seq., the Resource Conservation and Recovery Act,
      42
      U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules,
      or regulations adopted pursuant thereto. 

     

    Event
      of Default.
      The
      words "Event of Default" mean any of the events of default set forth in this
      Agreement in the default Section of this Agreement. 

     

    GAAP.
      The
      word "GAAP" means generally accepted accounting principles. 

     

    Grantor.
      The
      word "Grantor" means each and all of the persons or entities granting a Security
      Interest In any Collateral for the Loan, including without limitation all
      Borrowers granting such a Security Interest. 

     

    Guarantor.
      The
      word "Guarantor" means any guarantor, surety, or accommodation party of any
      or
      all of the Loan. 

     

    Hazardous
      Substances,
      The
      words "Hazardous Substances" mean materials that, because of their quantity,
      concentration or physical, chemical or infectious characteristics, may cause
      or
      pose a present or potential hazard to human health or the environment when
      improperly used, treated, stored, disposed of, generated, manufactured,
      transported or otherwise handled. The words "Hazardous Substances" are used
      in
      their very broadest sense and include without limitation any and all hazardous
      or toxic substances, materials or waste as defined by or listed under the
      Environmental Laws. The term "Hazardous Substances" also includes, without
      limitation, petroleum and petroleum by-products or any fraction thereof end
      asbestos. 

     

    Indebtedness.
      The
      word "Indebtedness" means the indebtedness evidenced by the Note or Related
      Documents, in principal, interest, costs, expenses and attorneys' fees and
      all
      other fees and charges together with all other indebtedness and costs and
      expenses for which Borrower is responsible under this Agreement or under any
      of
      the Related Documents-

     

    Lender.
      The
      word "Lender" means FIRST GUARANTY BANK, its successors and assigns, and any
      subsequent holder or holders of Borrower's Loan and Note, or any interest
      therein. 

     

    Loan.
      The
      word "Loan" means any and all loans and financial accommodations from Lender
      to
      Borrower whether now or hereafter existing, and however evidenced, including
      without limitation those loans and financial accommodations described herein
      or
      described on any exhibit or schedule attached to this Agreement from time to
      time. 

     

    Note.
      The
      word "Note" means the Note executed by PREMIER FINANCIAL BANCORP. INC. in the
      principal
      amount of $7,000,000.00 dated January 31, 2006,
      together with all renewals, extensions, modifications, refinancings,
      consolidations and substitutions of and for the note or credit agreement.

     

    Permitted
      Liens.
      The
      words "Permitted Liens" mean (a) liens and security interests securing
      indebtedness owed by Borrower to Lender; (b) liens for taxes, assessments,
      or
      similar charges either not yet due or being contested in good faith; (c) liens
      of materialmen, mechanics, warehousemen, or carriers, or other like liens
      arising in the ordinary course of business and securing obligations which are
      not yet delinquent; (d) purchase money liens or purchase money security
      interests upon or in any property acquired or held by Borrower in the ordinary
      course of business to secure indebtedness outstanding on the date of this
      Agreement or permitted to be incurred under the paragraph of this Agreement
      titled "indebtedness and Liens"; (e) liens and security interests which, as
      of
      the date of this Agreement, have been disclosed to and approved by the Lender
      in
      writing; and (f) those liens and security interests which in the aggregate
      constitute an immaterial and insignificant monetary amount with respect to
      the
      net value of Borrower's assets. 

     

    Related
      Documents.
      The
      words "Related Documents" mean all promissory notes, credit agreements, loan
      agreements, environmental agreements, guaranties, security agreements,
      mortgages, deeds of trust, security deeds, collateral mortgages, and all other
      instruments, agreements and documents, whether now or hereafter existing,
      executed in connection with the Loan. 

     

    Security
      Agreement.
      The
      words "Security Agreement" mean and include individually, collectively,
      interchangeably and without limitation any agreements, promises, covenants,
      arrangements, understandings or other agreements, whether created by law,
      contract, or otherwise, evidencing, governing, representing, or creating a
      Security Interest.

     

    Security
      Interest.
      The
      words "Security Interest" mean, without limitation, any and all types of
      collateral security, present and future, whether in the form of a lien, charge,
      encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop
      pledge, chattel mortgage, collateral chattel mortgage, chattel trust, factor's
      lien. equipment trust, conditional sale, trust receipt, lien or title retention
      contract, lease or consignment intended as a security device, or any other
      security or lien interest whatsoever whether created by law, contract, or
      otherwise. 

     

    BORROWER
      ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT
      AND
      BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS DATED JANUARY
      31.
      2006.

    

    BORROWER:

     

    PREMIER
      FINANCIAL BANCORP. INC.

     

    By:
      /s/
      Robert W. Walker    

           
      ROBERT W. WALKER, President & CEO of PREMIER

    FINANCIAL
      BANCORP, INC.

     

    LENDER:

     

    FIRST
      GUARANTY BANK

     

    By:
      /s/
      Michael F. Lofaso    

         
      Michael F. Lofaso, Senior Vice President

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