Document:

Exhibit 10.2

 

Sport-Haley,
Inc.

4600 E. 48th
Avenue

Denver, CO  80216

 

 

November 11, 2004

 

Donald
W. Jewell

Sport-Haley,
Inc.

4600
E. 48th Avenue

Denver,
CO  80216

 

Re:
Agreement to Serve as Interim Chief Executive Officer

 

Dear
Don,

 

As
you know, the board of directors of Sport-Haley, Inc. (the “Company”) voted to
appoint you as Interim Chief Executive Officer. The purpose of this letter
agreement is to confirm the terms of the agreement reached with you to serve as
Interim Chief Executive Officer.

 

1.             Continuation of Duties and Responsibilities Under February 2001 Employment Agreement. Except as specifically set forth in this
letter agreement, all of the terms of the Executive Employment Agreement dated
February 1, 2001 between you and the Company (the “February 2001 Employment
Agreement”) for you to serve as Senior Vice President, shall remain in full
force and effect, according to the terms of the February 2001 Agreement. You
agree that you will continue to perform your duties and responsibilities as
Senior Vice President pursuant to the terms of the February 2001 Employment
Agreement and shall continue to receive the compensation and benefits set forth
under that Agreement, as amended herein. 
Further, upon the termination without cause of your duties under this
letter agreement as Interim Chief Executive Officer, you agree that you shall
continue to perform your duties and responsibilities as Senior Vice President
pursuant to the terms and conditions of the February 2001 Employment Agreement.
The February 2001 Employment Agreement may be terminated according to its
provisions for termination as contained in Article III thereof.

 

2.             Duties and Responsibilities. In addition to your duties and
responsibilities as Senior Vice President, as set forth in the February 2001
Agreement, you agree to perform the following duties and responsibilities as
Interim Chief Executive Officer:

 

Supervision
and coordination of all operations of the Company; supervision of all other
executive and operating officers of the Company, and such other matters as
determined from time to time by the Board of Directors.

 

3.             Base Salary. In addition to the Base Salary, as amended, that you receive pursuant
to your February 2001 Agreement, you shall receive an additional $50,000
annually as Base Salary. Thus, as of the effective date of this letter
agreement, your total Base Salary shall be $200,000 annually.

 

1

 

                Bonus and Bonus Plan
Participation. At the conclusion of the term of this
Agreement or upon any other event of termination, the Board of Directors of the
Company, in its sole discretion, shall consider whether to award you a bonus
for your performance as Interim Chief Executive Officer pursuant to this
agreement. You remain eligible for bonuses as Senior Vice President pursuant to
Article II, Section 2.2 of the February 2001 Agreement.

 

4.             Term. The term of this agreement shall be from November 1, 2004 through
June 30, 2005, subject to automatic monthly extensions and earlier termination
should the Board of Directors appoint a permanent Chief Executive Officer
within the term or should grounds for termination otherwise exist, as set forth
in Article III of the February 2001 Agreement. Provided that you are in
compliance with all of your obligations under this agreement, at the end of the
initial term (June 30, 2005), the term of your employment as Interim Chief
Executive Officer shall be extended automatically for one additional month at
the end of each month of the extended term of this agreement on the same terms
and conditions as contained in this agreement, unless either the Company or you
shall, at least 30 days prior to the expiration of the extended term, give
written notice of the intention not to renew this agreement. If the Company
gives such written notice of non-renewal, the provisions of Section 3.3 of the
February 2001 Agreement shall apply; if the Executive gives such written notice
of non-renewal, the provisions of Section 3.5 of the February 2001 Agreement
shall apply. The term and termination provisions of the February 2001 Agreement
shall otherwise remain in full force and effect.

 

5.             Effective Date. This agreement shall become effective
November 1, 2004.

 

If
you are in agreement with the terms of this agreement, please so indicate by
signing below.  This agreement has been
approved by the Board of Directors and the Compensation Committee of the
Company and is signed below by an authorized member of the Board and
Compensation Committee.

 

	
   

  	
  SPORT-HALEY,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mark J. Stevenson

  	
   

  
	
   

  	
   

  	
  Mark
  J. Stevenson, Chairman of the

  
	
   

  	
   

  	
  Compensation
  Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  DONALD
  W. JEWELL

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donald W. Jewell

  	
   

  
	
   

  	
   

  	
  Donald
  W. Jewell

  

 

2Exhibit 10.3

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

EXECUTIVE
EMPLOYMENT AGREEMENT, effective January 1, 2005, by and between SPORT-HALEY,
INC., a Colorado corporation (the “Company”) and MARK MALEY (the “Executive”).

 

WHEREAS,
the Executive and the Company entered into an Executive Employment Agreement
effective January 1, 2004 and the Executive and the Company wish to enter into
a new agreement, which agreement shall supersede and replace the Agreement
effective January 1, 2004;

 

WHEREAS,
the Company desires to employ the Executive on a full-time basis, and the
Executive desires to be so employed by the Company, from and after the date of
this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree as follows:

 

ARTICLE I

 

EMPLOYMENT DUTIES AND BENEFITS

 

Section 1.1  Employment. The Company hereby employs the Executive in
the position described on Schedule 1 hereto as an executive officer of the
Company. The Executive accepts such employment and agrees to perform the duties
and responsibilities assigned to him pursuant to this Agreement.  As of the effective date of this Agreement,
the terms and provisions of this Agreement shall replace and supersede in all
respects the Executive Employment Agreement entered into by the Company and
Executive effective January 1, 2004.

 

Section 1.2  Duties and Responsibilities. The Executive shall hold the position with
the Company which is specified on Schedule 1, which is attached hereto and
incorporated herein by reference. The Executive is employed pursuant to the
terms of this Agreement and agrees to devote full-time to the business of the
Company. The Executive shall perform the duties set forth on Schedule 1 while
employed as an executive officer, and such further duties as may be determined
and assigned to him from time-to-time by the Chief Executive Officer or the
Board of Directors of the Company.

 

Section 1.3  Working Facilities. The Executive shall be furnished with
facilities and services suitable to the position and adequate for the
performance of the Executive’s duties under this Agreement.

 

Section 1.4  Vacations. The Executive shall be entitled each year to
a reasonable vacation of not less than two weeks in accordance with the
established practices of the Company now or hereafter in effect for executive
personnel, during which time the Executive’s compensation shall be paid in
full.

 

1

 

Section 1.5  Expenses. The Executive is authorized to incur
reasonable expenses for promoting the domestic and international business of
the Company in all respects, including expenses for entertainment, travel and
similar items, provided that such expenses do not exceed the budgets
established by the Company for such items. The Company will reimburse the
Executive for all such expenses upon the presentation by the Executive, from
time-to-time, of an itemized account of such expenditures.

 

Section 1.6  Relocation Expenses. Except as set forth in this Section 1.6,
until the Executive completes his relocation to Denver, Colorado, on or before
May 31, 2005 the Company shall pay to the Executive (i) all expenses incurred
by the Executive for temporary living quarters while the Executive is
relocating to Denver, Colorado, (ii) all moving and storage expenses for
household goods in connection with the Executive’s relocation, (iii)  all travel expenses of the Executive and his
spouse for up to six separate round trips related to the Executive’s search for
a residence in the Denver, Colorado area, and (iv) all expenses incurred by
Executive in the sale of Executive’s residence in Houston, Texas, including the
real estate commission paid by Executive. The Executive shall present to the
Company an itemized account of such expenditures, and repayment of such
expenses by the Company shall be amortized throughout the effective term of
this Agreement. In the event the Executive terminates his employment without
cause pursuant to Section 3.5 hereof, the non-amortized portion of such
expenses shall be reimbursed to the Company by the Executive. 

 

Section 1.7  Benefit Plans. From the effective date of this Agreement,
the Executive shall be entitled to participate in all existing benefit plans
provided to the Company’s executive employees including, to the extent now or
hereafter in effect, medical, health, dental, vision, disability, life
insurance and death benefit plans, in accordance with the terms of such plans.

 

ARTICLE II

 

COMPENSATION

 

Section 2.1  Base Salary. The Company shall pay to the Executive a
base salary of not less than the amount specified on Schedule 1, subject to
annual review and raises in such base salary. 
The base salary may be raised by action of the Board of Directors, and
such raises shall thereafter be included in the Executive’s base salary as
defined for purposes of this Agreement and the Company’s bonus plan.

 

Section 2.2  Bonus and Bonus Plan Participation. The Executive shall be entitled to receive a
bonus at such time or times as may be determined by the Board of Directors and
Compensation Committee of the Company. The Executive shall also be entitled to
receive bonuses of up to 40% of the Executive’s base

 

2

 

salary in accordance with the provisions of
the Company-wide bonus plan as in effect from time to time, at the discretion
and approval of the Compensation Committee.

 

ARTICLE III

 

TERM OF EMPLOYMENT AND TERMINATION

 

Section 3.1  Term. This Agreement shall be for a term which is
specified on Schedule 1, commencing on its effective date, subject, however, to
termination during such period as provided in this Article. Provided that the
Executive is in compliance with all of his obligations hereunder, the term of
the Executive’s employment shall be extended automatically for one additional
year at the end of each year of the term or extended term of this Agreement on
the same terms and conditions as contained in this Agreement, unless either the
Company or the Executive shall, at least 90 days prior to the expiration of the
initial term or of any renewal term, give written notice of the intention not
to renew this Agreement. If the Company gives such written notice of
non-renewal, the provisions of Section 3.3 shall apply; if the Executive gives
such written notice of non-renewal, the provisions of Section 3.5 shall apply.
Automatic renewals shall be effective in subsequent years on the same day of
the same month as the original effective day and month of this Agreement.

 

Section 3.2  Termination by the Company With Cause. The Company may terminate the Executive, at
any time, upon ten days’ written notice and opportunity for Executive to remedy
any non-compliance with the terms of this Agreement (if such non-compliance is
capable of being remedied; if not, the Company’s notice of termination shall be
effective immediately), for Cause. In such event, the Board of Directors shall
provide in writing to the Executive an opinion of the Board of Directors,
signed by each member voting in favor of termination of the Executive, which
shall specify with particularity the basis for such termination. Upon the date
of such termination, the Company’s obligation to pay compensation and benefits
shall terminate, at which time the Company shall be responsible for
compensating the Executive for any vacation time not taken. Subject to this
exception and the obligation of the Company to compensate the Executive through
the notice period, no other compensation shall be payable to the Executive
should this Agreement be terminated pursuant to this Section 3.2.

 

As
used herein, the term “Cause” shall be limited to any of the following from and
after the date hereof: (i) any willful breach of any material written policy of
the Company that results in material and demonstrable liability or loss to the
Company; (ii) the engaging by Executive in conduct involving moral turpitude
that causes material and demonstrable injury, monetarily or otherwise, to the
Company, including, but not limited to, misappropriation or conversion of
assets of the Company (other than

 

3

 

immaterial assets); (iii) conviction of or
entry of a plea of nolo contendere to a felony; or (iv) a material breach of
this Agreement by engaging in action in violation of the restrictive covenants
in this Agreement. No act or failure to act by the Executive shall be deemed “willful”
if done, or omitted to be done, by him in good faith and with the reasonable
belief that his action or omission was in the best interests of the Company. 

 

Section 3.3  Termination by the Company Without Cause. The Company may terminate the Executive’s
services without cause at any time upon 90 days’ written notice.  In such event, in addition to compensating
the Executive during such 90-day notice period, the Company shall be obligated
to compensate the Executive with severance pay equal to twelve additional
months’ compensation as of the date of such termination. Accordingly, in the
event the Company terminates this Agreement without cause or chooses not to
renew this Agreement upon its expiration, the Executive shall receive an
aggregate of fifteen months’ salary from and after the date of the Executive’s
receipt of a notice of termination through and including the date of
termination. In addition to the foregoing, the Executive shall receive a bonus
which shall be equivalent to 50% of the annual bonus last received by the
Executive, if any. Such bonus provision shall be in addition to the
compensation and severance package hereinabove specified.

 

Section 3.4  Termination by the Executive With Cause. The Executive may terminate his employment
with the Company at any time, upon ten days’ written notice and opportunity for
the Company to remedy any non-compliance, by reason of (i) the Company’s
material failure to perform its duties pursuant to this Agreement, or (ii) any
material diminishment in the duties and responsibilities, working facilities,
or benefits as described in Article I of this Agreement. The Executive shall
not be entitled to the severance compensation and other benefits described in
Section 3.7 below in the event of termination of this Agreement pursuant to
this Section 3.4, except as otherwise provided in Section 3.7(a), but shall be
entitled to the compensation provided in Section 3.3 upon a determination that
the Company has failed to perform its duties pursuant to this Agreement and
that such failure is material or a determination that the duties and
responsibilities, working facilities, or benefits as described herein have been
materially diminished. Such determination shall be made by the Board of
Directors in their best good faith.

 

Section 3.5  Termination by the Executive Without Cause. The Executive, without cause, may terminate
this Agreement upon 90 days’ written notice to the Company. In such event, the
Executive shall not be required to render the services required under this
Agreement following such 90-day period. 
Compensation for vacation time not taken by the Executive shall be paid
to the Executive at the date of

 

4

 

termination. The Executive shall not be
entitled to the severance compensation and other benefits described in Section
3.7 below in the event of termination of this Agreement pursuant to this
Section 3.5, except as described in Section 3.7(a), and shall not be entitled
to the compensation provided in Section 3.3.

 

Section 3.6  Termination upon Death of the Executive. In addition to any other provision relating
to termination, this Agreement shall terminate upon the Executive’s death.  In such event, all unpaid compensation and
bonuses, compensation for vacation time not taken by the Executive and all
expense reimbursements due to the Executive shall be paid to the Executive’s
estate.

 

Section 3.7  Severance Compensation and Continuation of
Benefits.

 

(a)
Notwithstanding any other provisions hereof, in the event of a non-negotiated
change in control of the Company and either the Executive or the Company
terminate this Agreement within 60 days of such non-negotiated change in
control, the Executive shall receive severance compensation, payable in a lump
sum within 30 days of such non-negotiated change in control, equal to three
times his annual salary and incentive or bonus payments, if any, as shall have
been paid to the Executive during the most recent 12-month period concluded
prior to the date of his termination or resignation. If the total amount of the
non-negotiated change of control compensation were to exceed three times the
Executive’s base compensation (the average annual taxable compensation of the
Executive for the five years preceding the year in which the change of control
occurs), the Company and the Executive will reduce the lump sum compensation to
be received by the Executive in order to avoid the imposition of the golden
parachute tax as provided in the Tax Reform Act of 1984, as amended by the Tax
Reform Act of 1986.  The foregoing
provisions shall not apply in the event of a negotiated change in control of
the Company.

 

(b)
In the event the Executive is required to hire counsel to negotiate on his
behalf in connection with his termination or a change in control of the
Company, or in order to enforce the rights and obligations as provided herein,
the Company shall reimburse to the Executive all reasonable attorney’s fees
which may be expended by the Executive in seeking to enforce the terms hereof.
Such reimbursement shall be paid by the Company every 30 days after the
Executive provides to the Company copies of invoices from the Executive’s
counsel. Such invoices may be redacted to preserve the attorney-client
privilege or attorney-client confidentiality.

 

(c)
So long as the Executive is receiving severance compensation pursuant to this
Section 3.7, the Executive shall be entitled to continue to participate, at the
Company’s cost, in all existing benefit plans provided to the Company’s
executive employees at the time of the Executive’s termination or resignation.

 

5

 

Such plans shall include, but are not limited
to, then-existing medical, health, dental, vision, disability, life insurance
and death benefit plans. If the terms of such plans expressly prohibit the
Executive from continuing as a participant in such plans following the date of
resignation or termination, the Company will provide the Executive with
benefits equivalent to, or exceeding, those offered by the then-existing
benefit plans offered to the Company’s executive employees, all at the Company’s
cost, for the duration of the Executive’s right to severance compensation
hereunder.

 

Any
compensation to be paid to the Executive under the foregoing provisions of this
Section 3.7 shall be subject to the Executive complying with the non-compete
provisions of Section 4.1(c) below.  In
the event the Executive does not so comply, the Company shall be released from
any obligations to the Executive under this Section 3.7.

 

Section 3.8  Options. In the event of a non-negotiated change in
control of the Company and either the Executive or the Company terminate this
Agreement within 60 days of such non-negotiated change in control as provided
in Section 3.7(a) of this Agreement, any and all options granted to the
Executive to purchase Common Stock of the Company shall become fully vested and
exercisable on the date of termination of this Agreement. In the event of
termination or non-renewal by either party without cause in accordance with
Sections 3.3 or 3.5 of this Agreement, any and all options granted to the
Executive to purchase Common Stock of the Company will vest and become
exercisable on a pro-rated basis from the date of grant to the date of
termination of this Agreement based on the number of months during which this
Agreement has been in effect from the date of grant and the Company’s
established thirty six month vesting period. For example, options granted to
purchase 20,000 shares on the effective date of this Agreement would become
vested and exercisable at a rate of 555.55 shares per month for each month
during which this Agreement is in effect. 
In the event this Agreement is terminated by the Company for cause,
options will vest and be exercisable pursuant to the terms of the applicable
Stock Option Plan or any successor plan under which such options are granted
(the “Plan”) regarding termination of employment for cause.  This provision shall serve as a contractual
modification of any option grants or agreements between the Executive and the
Company and is hereby incorporated by reference into each such option grant or
agreement.

 

6

 

ARTICLE IV

 

CONFIDENTIALITY AND COMPETITION

 

Section 4.1  Further Obligations of the Executive
During and After Employment.

 

(a)
The Executive agrees that, during the tem of his employment under this
Agreement, he will engage in no other business activities which are or may be
competitive with, or which might place him in a competing position to that of,
the Company or any subsidiary of the Company.

 

(b)
The Executive realizes that during the course of his employment, the Executive
will have produced and/or have access to confidential business plans,
information, business opportunity records, notebooks, data, formula,
specifications, trade secrets, customer lists, account lists and inventions of
the Company and its affiliates. Therefore, during or subsequent to his
employment by the Company, or by an affiliate, the Executive agrees to hold in
confidence and not to directly or indirectly disclose or use or copy or make
lists of any such information, except to the extent authorized by the Company
in writing. All records, files, business plans, documents, equipment and the
like, or copies thereof, relating to Company’s business, or the business of an
affiliated company, which the Executive shall prepare, or use, or come into
contact with, shall remain the sole property of the Company, or of an
affiliated company, and shall not be removed from the Company’s or the
affiliated company’s premises without its written consent, and shall be
promptly returned to the Company upon termination or resignation of employment
with the Company or its affiliated companies.

 

(c)
Because of his employment by the Company, the Executive will have access to
trade secrets and confidential information about the Company, its business
plans, its business accounts, its business opportunities, its expansion plans
into other geographic areas and its methods of doing business. The Executive
agrees that for a period of twelve months after termination or resignation of
his employment (except if the Executive terminates this Agreement for cause
under Section 3.4 hereof or without cause under Section 3.5 hereof), he will
not, directly or indirectly, compete with the Company or its affiliates in the
business of designing, merchandising, marketing or contracting for the
manufacture of men’s and women’s golf apparel and golf outerwear within the
United States. This non-compete agreement shall be void and of no further force
or effect in the event termination occurs under Section 3.3 or Section 3.7
hereof and the Company fails to pay the Executive amounts required under
Section 3.3 or Section 3.7 hereof.

 

(d)
In the event this Agreement is terminated by the Company without cause pursuant
to Section 3.3, then Executive shall have the right to terminate the
non-compete agreement contained in Section 

 

7

 

4.1(c) by releasing the Company from its
obligation to pay Executive any severance compensation, employee benefits or
other form of compensation which might otherwise be payable under this
Agreement.  Executive shall make such
election upon five days’ written notice to the Company. The Executive’s
obligations under the non-compete agreement and the Company’s obligation to pay
severance compensation, employee benefits and other compensation shall all
terminate as of the effective date of the notice described above.

 

(e)
In the event a court of competent jurisdiction finds any provision of this
Section 4.1 to be so overbroad as to be unenforceable, then such provision
shall be reduced in scope by the court, but only to the extent deemed necessary
by the court to render the provision reasonable and enforceable, it being the
Executive’s intention to provide the Company with the broadest protection
possible against harmful competition.

 

ARTICLE V

 

DISABILITY AND ILLNESS

 

Section 5.1  Disability and Salary Continuation.

 

(a)
Definition of Total Disability. For purposes of this Agreement, the
terms “totally disabled” and “total disability” shall mean disability as
defined in any total disability insurance policy or policies, if any, in effect
with respect to the Executive.  If no
insurance policy is in effect, “total disability” shall mean a medically
determinable physical or mental condition which in the opinion of two
independent physicians renders the Executive unable to perform substantially
all of the duties required pursuant to this Agreement. Total disability shall
be deemed to have occurred on the date of the disabling injury or onset of the
disabling illness, as determined by the two independent physicians.

 

(b)
Salary Continuation. If the Executive becomes totally disabled during
the term of this Agreement, his full salary shall be continued for 360 days
from the date of the disabling injury or onset of the disability illness.

 

Section 5.2  Illness. If the Executive is unable to perform the
services required under this Agreement by reason of illness or physical injury
not amounting to total disability, as defined in this Article, the compensation
otherwise payable to the Executive under this Agreement shall be continued in
full for the remaining term or renewed term of this Agreement, but in no event
for a period exceeding one year.

 

8

 

ARTICLE VI

 

GENERAL MATTERS

 

Section 6.1  Governing Law. This Agreement shall be governed by the laws
of the State of Colorado and shall be construed in accordance therewith.

 

Section 6.2  No Waiver. No provision of this Agreement may be waived
except by an agreement in writing signed by the waiving party.  A waiver of any term or provision shall not
be construed as a waiver of any other term or provision.

 

Section 6.3  Amendment. This Agreement may be amended, altered or
revoked at any time, in whole or in part, by filing with this Agreement a
written instrument setting forth such changes, signed by each of the parties.

 

Section 6.4  Benefit. This Agreement shall be binding upon the
Executive and the Company, and shall not be assignable by the Company without
the Executive’s written consent.

 

Section 6.5  Construction. Throughout this Agreement the singular shall
include the plural, and the plural shall income the singular, and the masculine
and neuter shall include the feminine, wherever the context so requires.

 

Section 6.6  Text to Control. The headings of articles and sections are
included solely for convenience of reference. 
If any conflict between any heading and the text of this Agreement
exists, the text shall control.

 

Section 6.7  Severability. If any provision of this Agreement is
declared by any court of competent jurisdiction to be invalid for any reason,
such invalidity shall not affect the remaining provisions. On the contrary,
such remaining provisions shall be fully severable, and this Agreement shall be
construed and enforced as if such invalid provisions had not been included in the
Agreement.

 

Section 6.8  Authority. The officer executing this Agreement on
behalf of the Company has been empowered and directed to do so by the Board of
Directors of the Company.

 

Section 6.9  Effective Date. The effective date of this Agreement shall
be January 1, 2005.

 

 

	
  SPORT-HALEY,
  INC.

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Donald W. Jewell

  	
   

  	
  /s/
  Mark Maley

  	
   

  
	
   

  	
  Donald
  W. Jewell,

  	
  Mark
  Maley

  
	
   

  	
  Chief
  Executive Officer

  	
   

  
					

 

9

 

SPORT-HALEY, INC.

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

Schedule 1

 

Duties and Compensation

 

	
  Executive:

  	
   

  	
  Mark
  Maley

  
	
   

  	
   

  	
   

  
	
  Position:

  	
   

  	
  Vice
  President – Sales

  
	
   

  	
   

  	
   

  
	
  Base
  Salary:

  	
   

  	
  $135,000
  per year, payable bi-weekly, plus an override of 0.2% on the Company’s gross
  annualized sales, less discounted sales of more than 50% from original
  suggested wholesale sales price, returns and credits

  
	
   

  	
   

  	
   

  
	
  Bonus:

  	
   

  	
  Participation
  in executive level of Company-wide bonus plan, up to 40% of annual
  compensation per year, at the discretion of the Compensation Committee

  
	
   

  	
   

  	
   

  
	
  Term:

  	
   

  	
  January
  1, 2005 through January 1, 2006, subject to automatic one (1) year extensions
  described in Section 3.1 of the Executive Employment Agreement

  
	
   

  	
   

  	
   

  
	
  Stock
  Options:

  	
   

  	
  The
  Company’s Stock Option Plan has expired. When and if the Company creates a
  new stock option plan, the Executive will be allowed to participate in such
  plan and receive grants of options in amounts at the discretion and subject
  to approval of the Compensation Committee. Such options to purchase shares
  typically vest in increments of one-third per year and are issued with an
  exercise price of not less than 85% of the fair market value of the Company’s
  Common Stock on date of grant, such date to be determined by the Compensation
  Committee.

  
	
   

  	
   

  	
   

  
	
  Duties
  and

  	
   

  	
   

  
	
  Responsibilities:

  	
   

  	
  Management,
  supervision and coordination of all sales activities of the Company

  

 

 

	
  APPROVED:

  	
   

  
	
   

  	
   

  
	
  THE
  COMPANY:

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Donald W. Jewell

  	
   

  	
  By:

  	
  /s/
  Mark Maley

  	
   

  
	
   

  	
  Donald
  W. Jewell, Chief Executive

  	
   

  	
  Mark
  Maley, Executive

  
	
   

  	
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:
  December 2, 2004

  	
   

  	
  Date:
  December 2, 2004

  
						

 

10

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