Exhibit 10.23


 


June 27, 2005


 


 


Mr. Greg Balla


9 Addington Avenue


Ryde, NSW 2112


Australia


 


Dear Greg,


 


It was a pleasure to spend the weekend with you in Hawaii.  I appreciate your candidness and interest in
exploring with me the potential opportunity of your becoming a key executive
within my organization.  Hopefully, you
found our meeting useful and have determined our partnership could be
beneficial to your career and family.


 


Based on our conversation in Honolulu, I would like to offer you the
position of Managing Director of Channell’s Australasia Region.  If you elect to accept this position you will
be in charge of all commercial aspects of running this region except for an
indirect reporting structure regarding Finance/IT.  You will report directly to me, President/CEO
of Channell and have an indirect relationship with Channell’s Board of
Directors.  You will be located in our
Sydney office but will be responsible for relocating our current facilities to
another manufacturing site by the end of 2006.


 


Channell is offering you a base salary of $275,000 AUD annually.  Achievement of goals and objectives are of
primary importance to me; therefore, you will be eligible starting in 2006 for
an annual bonus of up to 40% of your base salary.  The contribution percentages of this bonus
are as follows:


 


	
  •

  	
  Channell global earnings –

  	
   

  	
  20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
  Channell Australasia and Bushman’s earnings – (based
  on a minimum 18% earnings growth per year)

  	
   

  	
  50

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
  Controlling budgetary objective by percentage of
  earnings growth year over year–

  	
   

  	
  20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  •

  	
  Personal goals and objectives –

  	
   

  	
  10

  	
  %

  



 


In addition, the compensation package includes


 


•                  Superannuation
contribution of 9% annually


 


•                  Automobile
– BMW 5 Series (or similar type)


 





















 


•                  Stock
Option – 50,000 shares (upon Board approval / 3 year vesting)


 


•                  In
2005 a maximum discretionary $10,000 AUD bonus will be available for assisting
the Australasia operation in completing their EPS and bonus plan objectives


 


For your review, I have also requested a Channell Employee Handbook be
forwarded to you under separate cover. 
Additionally, I have attached our standard confidentiality agreement for
all Channell executives and you will be required to take a mandatory drug test
upon starting your employment at Channell.


 


Overall, I personally hope the above offer is acceptable to you and if
you elect to accept my offer of employment, I request your start date be July
31, 2005.  Furthermore, upon your
acceptance, I would like to invite you and your wife to a Board Dinner on Saturday
evening, July 9, 2005 at the Quay restaurant, located in Sydney Harbor.  Also, there will be a Channell/Bushman
Management Meeting at the Four Seasons Hotel on Sunday, July 10 which I would
appreciate you planning to attend.  Upon
acceptance of my offer Jeanne Bond will provide you with the details of these
two events.


 


In conclusion, I really hope you and your wife join me in expanding
your career at Channell.  If you accept
my offer please sign this letter and the enclosed confidentiality agreement and
fax these materials to 951.719.2791 by


July 1, 2005.


 


	
  Sincerely,

  	
   

  	
  Acceptance:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ WILLIAM H. CHANNELL, JR

  	
   

  	
   

  	
  /s/ GREG BALLA

  	
   

  	
  6/30/05

  	
   

  
	
  William H. Channell, Jr.

  	
   

  	
  Greg Balla

  	
  Date

  
	
  Chief Executive Officer

  	
   

  	
   

  	
   

  
							



 


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