COMPASS/UPG RENEWAL AND MODIFICATION AGREEMENT

Exhibit 10.13

                       RENEWAL AND MODIFICATION AGREEMENT
                       ----------------------------------

         THIS RENEWAL AND MODIFICATION  AGREEMENT (this  "Modification") is made
by and between UNIVERSAL POWER GROUP,  INC., a Texas  corporation  ("Borrower"),
and COMPASS BANK ("Lender"), to be effective as of the ___ day of _______, 2006,
but entered into as of the ____ day of March, 2006.

                                    RECITALS:

         WHEREAS,  Borrower  executed  and  delivered  to  Lender  that  certain
Revolving Credit and Security Agreement,  dated December 14, 2004 (the "Security
Agreement"),   covering   certain  items  of  collateral   and  property   being
specifically  described in the Security  Agreement  (all of such property  being
hereinafter collectively referred to as the "Property"); and

         WHEREAS,  the  Security  Agreement  secures  in part  the  indebtedness
evidenced by that certain  Revolving Note,  dated of even date with the Security
Agreement,  in the original stated principal amount of Twelve Million and No/100
Dollars  ($12,000,000.00)  (the  "Principal  Amount"),  executed by Borrower and
payable  to  Lender  (as may have  been  heretofore  renewed,  extended,  and/or
modified, the "Promissory Note"); and

         WHEREAS, the Borrower has obligations (collectively, the "Obligations")
under the  Promissory  Note,  Security  Agreement,  and other Loan Documents (as
defined below) (the  indebtedness  evidenced by the Promissory Note (as modified
by the First Amendment (defined below), is referred to herein as the "Loan", and
the Promissory Note, Security Agreement, and all other Loan documents evidencing
the Loan are herein collectively, the "Loan Documents"); and

         WHEREAS,  the parties desire to further modify the terms of the Loan as
the same  relate to  certain of  Borrower's  covenants,  agreements,  duties and
obligations  under the Security  Agreement and other terms and conditions of the
Loan.

                                   AGREEMENTS:

         NOW,  THEREFORE,  for and in  consideration of the mutual covenants and
agreements contained herein, and for other good and valuable consideration,  the
receipt and  sufficiency of which are hereby  acknowledged,  Borrower and Lender
hereby agree as follows:

         1. The parties acknowledge that Borrower's duties and obligations under
the Promissory Note (as hereby renewed) to repay the Principal Amount,  together
with  accrued  interest,   shall  be  included  within  the  definition  of  the
Obligations as herein specified, all in accordance with the terms and conditions
herein contained.

2.  From the date  hereof,  Borrower  promises  to pay to Lender  the  Principal
Amount,  together with interest  thereon,  and to perform all of the Obligations
under the Loan Documents (as hereby modified) including,  without limitation the
payment  of all  outstanding  principal  together  with all  accrued  but unpaid
interest  on the  Maturity  Date (as  defined in the  Security  Agreement).  The
Principal Amount shall accrue interest and be due and payable in accordance with
and as specified within the Promissory Note.

                                    10.13-1
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         3. In addition to the foregoing,  the parties hereby further agree that
the advance formula referenced in the Security Agreement as the "Borrowing Base"
shall  be  modified  hereby  as  follows:  eighty-five  percent  (85.0%)  of the
outstanding value of Borrower's  Eligible Accounts Receivable (as defined in the
Security  Agreement),  plus fifty  percent  (50.0%)  of the value of  Borrower's
Eligible  Inventory (as defined in the Security  Agreement);  provided,  however
that the  foregoing  sub-limit  upon  availability  with  respect to  Borrower's
Eligible  Inventory  shall  not  exceed  eighty-five   percent  (85.0%)  of  the
outstanding  value of Borrower's  Eligible  Accounts  Receivable at any one time
outstanding. All references to the term Borrowing Base in the Security Agreement
shall, after date hereof, refer to the advance formula specified above.

         4. Borrower hereby conveys and/or re-conveys,  grants and/or re-grants,
and makes and/or re-makes, each as applicable,  to Lender the security interests
and liens upon the Property remaining subject to the Loan Documents and securing
the  Obligations.  Further,  Borrower hereby  covenants and agrees that Borrower
shall not sell,  transfer,  convey or  otherwise  dispose of any of the Property
without Lender's prior written consent (except as otherwise  permitted under the
Security Agreement), and, in the event such consent by Lender is given, Borrower
shall  provide  Lender  with  such  additional  security  with  respect  to  the
Obligations as Lender shall require in its sole and absolute discretion.

         5. Borrower  hereby  renews,  but does not  extinguish,  the Promissory
Note,  Loan, and the liens and security  interests  created and evidenced by the
Security  Agreement  and all other liens and  security  interests  securing  the
Promissory Note (including, without limitation, any vendor's lien), and Borrower
promises to pay to the order of Lender,  the principal sum of the Loan evidenced
by the Promissory  Note, or so much thereof as may be advanced and  outstanding,
together with interest at the rate and in the manner specified in the Promissory
Note, as modified herein, and to observe, comply with and perform each and every
of the terms and provisions of the Loan Documents as herein modified.

         6.  Borrower  hereby  reaffirms the liens on the Property and any other
liens securing the Promissory  Note and/or Loan until the  indebtedness  and the
Promissory Note and Loan as modified and renewed hereby has been fully paid, and
agrees  that the  modification  set forth  herein  shall in no manner  affect or
impair the Promissory  Note, Loan, or the liens securing the same, and that said
liens shall no