| Title:                     | President                and Chief Operating Officer                commencing on the start date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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| Start                Date: | We                have anticipated your start date as                Tuesday, November 1, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
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| Salary:                    | Your                base salary will be $250,000.00 per year, payable in accordance with                the                normal payroll practices of the Company. Your base salary will be                reviewed                by the Compensation Committee                at the end of fiscal 2006, and any                increase recommended by the Compensation Committee                will be subject to approval by the                Board of Directors.                                                                                                                                                                                                                                                                                                                                                       |
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| Bonus:                     | You                will be eligible for an annual bonus                with respect to fiscal years beginning fiscal 2006 as recommended                by the                Compensation Committee and approved by the Board of Directors. The                bonus                will be based in part on your achievement of detailed quarterly and                annual                goals that will be established by the Compensation Committee with                input                from you and the chairman of the Board during the first 90 days                of                your                employment. Any bonus so determined will                be                payable at the same time as annual bonuses are                paid to other executive officers of the                Company. |
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| Stock                Options: | Management                will recommend to the Compensation                Committee that you be granted a stock                option under the Company's 2005 Equity                Incentive Plan (the "Plan") to purchase 100,000 shares of common                stock at                the first meeting of the Compensation Committee held after your start                date, or earlier by unanimous written consent. This option will be                in                addition to the stock option granted to you on June 14, 2005. The                recommended option will have an exercise price equal to the                fair market value of our common stock on the                date the Compensation Committee approves the                grant, determined in accordance with the                Plan. The recommended option will be exercisable for five (5) years                after                grant, subject to earlier termination upon termination of your continuous                service. The recommended option will vest over four (4) years, with                one                fourth (1/4) of the shares vesting twelve (12) months after the grant                date, and the balance vesting in equal quarterly                installments through and including                the fourth anniversary of the grant date. The recommended option                will be a                non-qualified stock option and will not qualify for incentive stock                option                (ISO) treatment under the Internal Revenue Code. |
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| Severance:                    | In                the event your employment is terminated for                any reason other than Cause (as defined                on                Exhibit A), or if you resign for Good Reason (as defined on Exhibit                A),                you will be entitled to severance in the form of post-termination                salary                continuation and payment by the Company of the premiums for extension                of                benefits on COBRA (collectively,                "Compensation Continuation")                for the number of months set forth below, conditioned                on your execution of a general                release of all known and unknown claims against the company, and                the                continued effectiveness of such release beyond any statutory revocation                period. The Compensation                Continuation, if payable, shall                be                paid for one (1) month for each two (2) month period of your employment                or                part thereof, up to a maximum of six (6) months of Compensation                Continuation. (For example, if your employment were terminated without                Cause after 4 months and 5 days of employment,                you would be entitled to 3                months Compensation Continuation.)                                                                                                                                                                                                           |
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| Resignation                from Board Committees: | In                order to ensure that the Company remains in compliance with the rules                of                the Nasdaq Stock Market concerning the composition of certain board                committees, by your execution of this letter, you are tendering your                resignation                from the Audit Committee and the                Compensation Committee.                                                                                                                                                                                                                              |
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| Health                Benefits:                   | The                Company offers a comprehensive benefits plan                that includes medical, dental, vision, short-term                disability, long-term disability                and life insurances. The Company pays for 100% of all health benefit                premiums, including dependents, and you can elect HMO or                PPO medical coverage. You may pay for any qualified                out-of-pocket expense on a pre-tax                basis through a Section 125 plan. Benefits begin the first day of                the                month following your start date. |
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| Paid                Time & Holidays:          | You                will receive 15 days of accrued Paid                Time Off (PTO) annually, for use for vacation                or for personal time off. PTO hours                are accrued per pay period. Any hours in excess of 200 will be paid                out in                the first pay period of December. In the event of short-term illness,                you                will be provided time to convalesce at home and will be paid your                regular salary for this time. Sick time                is                not accrued but rather is taken as needed.                    |
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|                                              | The                Company offers nine (9) paid holidays each calendar year, subject                to                future change.                You must be on active status the day before and the day after the                holiday                to                receive holiday pay.                                                                                                                                                                                                                                                                                                                              |
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| Retirement:                         | A                401k package is available with multiple investment                options and the company matches 25%                of the employee's deferral up to 6% of                your annual earnings. (Note: Some IRS limitations may                apply.)                                                                                                                                                                                                                        |
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| Public                Announcement: | We                plan to announce                our                understanding regarding your employment and other matters required                to be                disclosed in connection                with                this letter on                or                about October 18, 2005 in                a                press release and Form 8-K, each of which will                be submitted to you for your comment in                advance of issuance or filing. |
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| Arbitration:                        | As                a contingency                of                this offer, you will be                required to sign the attached Mutual Agreement to Arbitrate ("Arbitration                Agreement").                                                                                                                                                                                                                                                                                   |

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