HOME INTERIORS & GIFTS INC
COMMERCIAL LEASE DATED 5/21/02
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<TYPE>EX-10.1
<SEQUENCE>3
<FILENAME>d98773exv10w1.txt
<DESCRIPTION>COMMERCIAL LEASE DATED 5/21/02
<TEXT>
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                                                                    EXHIBIT 10.1

                                COMMERCIAL LEASE

THIS LEASE is made between      H.T. Ardinger & Son Co.
of                              1990 Lakepointe Drive  Lewisville, TX 75057
herein called Lessor, and       Home Interiors & Gifts, Inc.
of                              1649 Frankford Road West  Carrollton, TX 75007
herein called Lessee.
Lessee hereby offers to lease from Lessor the premises situated in the City of
Carrollton, County of Dallas, State of Texas,

described as
1135/1145 Crowley
Carrollton, TX 75006

upon the following TERMS and CONDITIONS:

     1)  TERM AND RENT. Lessor demises the above premises for a term of
         approximately 7.5 months commencing May 20, 2002 and terminating on
         December 31, 2002, or sooner as provided herein at the rental of
         Twenty-one thousand dollars ($21,000.00) per month payable in equal
         installments in advance on the first day of each month for that month's
         rental, during the term of this lease. All rental payments shall be
         made to Lessor, at the address specified above.

     2)  USE. Lessee shall use and occupy the premises for warehouse space. The
         premises shall be used for no other purpose. Lessor represents that the
         premises may lawfully be used for such purpose.

     3)  CARE AND MAINTENANCE OF PREMISES. Lessee shall, at his own expense and
         at all times, maintain the premises in as good condition as received,
         normal wear and tear expected, including plate glass, and shall
         surrender the same, at termination hereof, in as good condition as
         received, normal wear and tear excepted. Lessee shall be responsible
         for all repairs required, excepting the roof, exterior walls,
         structural foundations, driveways, plumbing, electrical and HVAC which
         shall be maintained by Lessor. Lessee shall also maintain in good
         condition lawns and shrubbery, which would otherwise be required to be
         maintained by Lessor.

     4)  ALTERATIONS. Lessee shall not, without first obtaining the written
         consent of Lessor, make any alterations additions, or improvements, in,
         to or about the premises.

     5)  ORDINANCES AND STATUTES. Lessee shall comply with all statutes,
         ordinances and requirements of all municipal, state and federal
         authorities now in force, or which may hereafter be in force,
         pertaining to the premises, occasioned by or affecting the use thereof
         by Lessee.

     6)  ASSIGNMENT AND SUBLETTING. Lessee shall not assign this lease or sublet
         any portion of the premises without prior written consent of the
         Lessor, which shall not be unreasonably withheld. Any such assignment
         or subletting without consent shall be void and, at the option of the
         Lessor, may terminate this lease.

     7)  UTILITIES. All applications and connections for necessary utility
         services on the demised premises shall be made in the name of Lessee
         only, and Lessee shall be solely liable for utility charges as they
         become due, including those for sewer, water, gas, electricity, and
         telephone services.

     8)  ENTRY AND INSPECTION. Lessee shall permit Lessor or Lessor's agents to
         enter upon the premises at reasonable times and upon reasonable notice,
         for the purpose of inspecting the same, and will permit Lessor at any
         time within sixty (60) days prior to the expiration of this lease, to
         place upon the promises any usual "To Let" or "For Lease" signs, and
         permit persons desiring to lease the same to inspect the premises
         thereafter.


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     9)  POSSESSION. If Lessor is unable to deliver possession of the premises
         at the commencement hereof, Lessor shall not be liable for any damage
         caused thereby, nor shall this lease be void or voidable, but Lessee
         shall not be liable for any rent until possession is delivered. Lessee
         may terminate this lease if possession is not delivered within 3 days
         of the commencement of the term hereof.

     10) INDEMNIFICATION OF LESSOR. Lessor shall not be liable for any damage or
         injury to Lessee, or any other person or to any property, occurring on
         the demised premises or any part thereof, and Lessee agrees to hold
         Lessor harmless from any claims for damages, no matter how caused.

     11) INSURANCE. Lessee, at his expense, shall maintain plate glass and
         public liability insurance including bodily injury and property damage
         insuring Lessee and Lessor with minimum coverage as follows: Lessee
         shall provide Lessor with a Certificate of Insurance showing Lessor as
         additional insured. To the maximum extent permitted by insurance
         policies which may be owned by Lessor or Lessee, Lessee and Lessor, for
         the benefit of each other, waive any and all rights of subrogation
         which might otherwise exist.

     12) EMINENT DOMAIN. If the premises or any part thereof or any estate
         therein, or any other part of the building materially affecting
         Lessee's use of the premises, shall be taken by eminent domain, this
         lease shall terminate on the date when title vests pursuant to such
         taking. The rent, and any additional rent, shall be apportioned as of
         the termination date, and any rent paid for any period beyond that date
         shall be repaid to Lessee. Lessee shall not be entitled to any part of
         the award for such taking or any payment in lieu thereof, but Lessee
         may file a claim for any taking of fixtures and improvements owned by
         Lessee, and for moving expenses.

     13) DESTRUCTION OF PREMISES. In the event of a partial destruction of the
         premises during the term hereof, from any cause, Lessor shall forthwith
         repair the same, provided that such repairs can be made within thirty
         (30) days under existing governmental laws and regulations, but such
         destruction shall not terminate this lease, except that Lessee shall be
         entitled to a proportionate reduction of rent while such repairs are
         being made, based upon the extent to which the making of such repairs
         shall interfere with the business of Lessee on the premises. If such
         repairs cannot be made within said thirty (30) days, Lessee may, at his
         option, terminate this lease. In the event that the building in which
         the demised premises may be situated is destroyed to an extent of not
         less than one-third of the replacement costs thereof, Lessor may elect
         to terminate this lease whether the demised premises be injured or not.
         A total destruction of the building in which the premises may be
         situated shall terminate this lease.

     14) LESSOR'S REMEDIES ON DEFAULT. If Lessee defaults in the payment of
         rent, or any additional rent, or defaults in the performance of any of
         the other covenants or conditions hereof, Lessor may give Lessee notice
         of such default and if Lessee does not cure any such default within ten
         (10) days, after the giving of such notice (or is such other default is
         of such nature that it cannot be completely cured within such period,
         if Lessee does not commence such curing within such ten (10) days and
         thereafter proceed with reasonable diligence and in good faith to cure
         such default), then Lessor may terminate this lease on not less than
         thirty (30) days' notice to Lessee. On the date specified in such
         notice the term of this lease shall terminate, and Lessee shall then
         quit and surrender the premises to Lessor, without extinguishing
         Lessee's liability. If this lease shall have been so terminated by
         Lessor, Lessor may at any time thereafter resume possession of the
         premises by any lawful means and remove Lessee or occupants and their
         effects. No failure to enforce any term shall be deemed a waiver.

     15) SECURITY DEPOSIT. Lessee shall deposit with Lessor on the signing of
         this lease the sum of zero ($0.00) dollars as security for the
         performance of Lessee's obligations under this lease, including without
         limitation the surrender of possession of the premises to Lessor as
         herein provided. If Lessor applies any part of the deposit to cure any
         default of Lessee, Lessee shall on demand deposit with Lessor the
         amount so applied so that Lessor shall have the full deposit on hand at
         all times during the term of this lease.

     16) COMMON AREA EXPENSES. In the event the demised premises are situated in
         a shopping center or in a commercial building in which there are common
         areas, lessee agrees to pay his pro-rata share of maintenance for the
         common area.


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     17) ATTORNEY'S FEES. In case suit should be brought for recovery of the
         premises, or for any sum due hereunder, or because of any act which may
         arise out of the possession of the premises, by either party, the
         prevailing party shall be entitled to all costs incurred in connection
         with such action, including a reasonable attorney's fee.

     18) WAIVER. No failure of Lessor to enforce any term hereof shall be deemed
         to be a waiver.

     19) NOTICES. Any notice which either party may or is required to give,
         shall be given by mailing the same, postage prepaid, to Lessee at the
         premises, or Lessor at the address specified above, or at such other
         places as may be designated by the parties from time to time.

     20) HEIRS, ASSIGNS, SUCCESSORS. This lease is binding upon and inures to
         the benefit of the heirs, assigns, and successors in interest to the
         parties.

     21) OPTION TO RENEW. Provided that Lessee is not in default in the
         performance of this lease, Lessee shall have the option to renew the
         lease for an additional term of six (6) months commencing at the
         expiration of the initial lease term. All of the terms and conditions
         of the lease shall apply during the renewal term and the monthly rent
         shall be the same. The option shall be exercised by written notice
         given to the Lessor not less than thirty (30) days prior to the
         expiration of the initial lease term. If notice is not given in the
         manner provided herein within the time specified, this option shall
         expire.

     22) SUBORDINATION. This lease is and shall be subordinated to all existing
         and future liens and encumbrances against the property.

     23) RADON GAS DISCLOSURE. As required by law, (Landlord) makes the
         following disclosure: "Radon Gas" is a naturally occurring radioactive
         gas that, when it has accumulated in a building in sufficient
         quantities, may present health risks to persons who are exposed to it
         over time. Additional information regarding radon and radon testing may
         be obtained from your county public health unit.

     24) ENTIRE AGREEMENT. The foregoing constitutes the entire agreement
         between the parties and may be modified only by a writing signed by
         both parties. The following Exhibits, if any, have been made a part of
         this lease before the parties' execution hereof:



                        SIGNED THIS 21ST DAY OF MAY, 2002





BY:  /s/ H.T. ARDINGER, JR.   LESSOR      BY: /s/ ARTHUR H. GRAINGER    LESSEE
   ------------------------                  ----------------------
   H.T. ARDINGER & SON CO.                   HOME INTERIORS & GIFTS, INC.



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