TO
TIME (AS ADJUSTED FROM TIME TO TIME, THE "BASE SALARY"), WHICH SALARY SHALL BE
PAYABLE BY THE COMPANY IN REGULAR INSTALLMENTS IN ACCORDANCE WITH THE COMPANY'S
GENERAL PAYROLL PRACTICES (IN EFFECT FROM TIME TO TIME).
THE BOARD SHALL
UNDERTAKE AN ANNUAL REVIEW OF EXECUTIVE'S BASE SALARY.
IN ADDITION, DURING THE
EMPLOYMENT PERIOD, EXECUTIVE SHALL BE ENTITLED TO PARTICIPATE IN ALL OF THE
COMPANY'S EMPLOYEE BENEFIT PROGRAMS FOR WHICH SENIOR EXECUTIVE EMPLOYEES OF THE
COMPANY AND ITS SUBSIDIARIES ARE GENERALLY ELIGIBLE, AND EXECUTIVE SHALL BE
ENTITLED TO FOUR WEEKS OF PAID VACATION EACH CALENDAR YEAR IN ACCORDANCE WITH
THE COMPANY'S POLICIES, WHICH SHALL ACCRUE ON A PRO RATA BASIS OVER THE COURSE
OF THE YEAR, AND WHICH IF NOT TAKEN DURING ANY YEAR MAY NOT BE CARRIED FORWARD
TO ANY SUBSEQUENT CALENDAR YEAR AND NO COMPENSATION SHALL BE PAYABLE IN LIEU
THEREOF.
(B)
DURING THE EMPLOYMENT PERIOD, THE COMPANY SHALL REIMBURSE
EXECUTIVE FOR ALL REASONABLE BUSINESS EXPENSES INCURRED BY HIM IN THE COURSE OF
PERFORMING HIS DUTIES AND RESPONSIBILITIES UNDER THIS AGREEMENT WHICH ARE
CONSISTENT WITH THE COMPANY'S POLICIES IN EFFECT FROM TIME TO TIME WITH RESPECT
TO TRAVEL, ENTERTAINMENT AND OTHER BUSINESS EXPENSES, SUBJECT TO THE COMPANY'S
REQUIREMENTS WITH RESPECT TO REPORTING AND DOCUMENTATION OF SUCH EXPENSES.
(C)
IN ADDITION TO THE BASE SALARY, THE BOARD MAY, IN ITS SOLE
DISCRETION, AWARD A BONUS TO EXECUTIVE FOLLOWING THE END OF EACH FISCAL YEAR
DURING THE EMPLOYMENT PERIOD BASED UPON EXECUTIVE'S PERFORMANCE AND THE
COMPANY'S OPERATING RESULTS DURING SUCH YEAR; PROVIDED, THAT AS LONG AS
EXECUTIVE SHALL REMAIN EMPLOYED BY THE COMPANY ON JANUARY 1, 2005, EXECUTIVE
SHALL BE ENTITLED TO A MINIMUM PERFORMANCE BONUS EQUAL TO $75,000 FOR FISCAL
2004.
(D)
EXECUTIVE SHALL BE ENTITLED TO RECEIVE A ONE-TIME PAYMENT OF UP TO
$8,000 TO REIMBURSE HIM FOR THE OUT-OF-POCKET COSTS IN CONNECTION WITH THE
RELOCATION OF HIS RESIDENCE FROM GREENSBORO, NORTH CAROLINA TO CHARLESTON, SOUTH
CAROLINA.
IN ADDITION, EXECUTIVE SHALL BE ENTITLED TO A ONE-TIME PAYMENT FOR
COSTS AND EXPENSES RELATED TO THE SALE OF HIS RESIDENCE IN GREENSBORO, NORTH
CAROLINA, IN AN AMOUNT EQUAL TO (X) $20,000 IF EXECUTIVE SELLS HIS RESIDENCE
WITHOUT THE USE OF A REAL ESTATE BROKER OR (Y) $30,000 IF EXECUTIVE SELLS HIS
RESIDENCE UTILIZING THE SERVICES OF A REAL ESTATE BROKER.
(E)
IN ADDITION TO THE BASE SALARY AND ANY BONUSES PAYABLE TO
EXECUTIVE PURSUANT TO THIS PARAGRAPH, EXECUTIVE SHALL BE ENTITLED TO HEALTH
INSURANCE AND DISABILITY INSURANCE OF SUCH COVERAGE AS REASONABLY DETERMINED BY
THE BOARD.
(F)
DURING THE EMPLOYMENT PERIOD, EXECUTIVE SHALL ALSO BE ENTITLED TO
REASONABLE PERIODS OF SICK LEAVE (WITHOUT LOSS OF PAY) IN ACCORDANCE WITH THE
COMPANY'S POLICIES AS IN EFFECT FROM TIME TO TIME.
2
(G)
ALL AMOUNTS PAYABLE TO EXECUTIVE AS COMPENSATION HEREUNDER SHALL
BE SUBJECT TO ALL REQUIRED AND CUSTOMARY WITHHOLDING BY THE COMPANY.
4.
TERM.
(A)
UNLESS RENEWED BY THE MUTUAL AGREEMENT OF THE COMPANY AND
EXECUTIVE, THE EMPLOYMENT PERIOD SHALL END ON APRIL 1, 2005.
THE EMPLOYMENT
PERIOD SHALL AUTOMATICALLY BE